A Look at the Economic Benefits of the Online Gambling Industry in Canada
We often hear or learn about the negative impacts of online gambling such as addiction and bankruptcy, but what about the positive impact and benefits of online gambling? One of the biggest benefits of the online gaming industry is its economic benefit. When a country offers legalised and state-regulated online gambling platforms, it can generate plenty of revenue in terms of taxes and levies. Online gambling also has the ability to create unique and specialised jobs, and generate revenue for the state. All this results in a big boost in the local economy.
When does gambling benefit a country economically?
The immense growth and transformation of the online gambling industry has had great economic impact on individuals, communities and their respective provinces or areas. This can be seen from tax revenues paid, the revenues generated by the online gaming industry and the number of individuals employed. Online gambling thus stimulates the local economy and contributes to government revenue by means of taxes and levies.
Gambling in Canada generates almost $13 billion per year. Government-run gambling in Canada generated $12.742 billion in 2003-2004 alone, a $700 million dollar increase from 2002-2003. This has increased a lot more by now.
It is important to note that a province or area can only benefit economically when that province or area has legalised gambling and when that particular area’s residents support these gambling channels, whether this is land-based or online gambling. When players spend their money on illegal and overseas sites, their own government does not benefit and their money is directed outside of the local economy.
When a country has legalised gambling, certain regulations are in place to not only protect and support players but also apply tax and thus generate revenue. This revenue can in turn be used to help local economies.
Putting revenue generated from online gambling to good use
Online gambling could bring in a lot of revenue, as gamblers seem to spend more than ever despite the economic climate. The funds generated from online casinos, state-regulated can do a lot of good for the local community. First of all it would create jobs. In order to get online casino platforms up and running, software would need to be developed and people need to be hired for this.
There are many ways in which the money generated form online casinos could be used. These include the improvement of public services (where taxes are used for education, youth programs, roads, healthcare, housing, infrastructure and development in communities). The online gambling industry thus promotes investment in infrastructure.
So even though gambling is most often perceived as negative, a lot of good can come from the revenue generated by it. A previously struggling government can now find the funds to improve service delivery and address those needs that they have been putting off because of a lack of funds.
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