Can a Regulated Gambling Industry Really Boost Economies?

Gambling laws are changing fast, and you only have to look at all of the different states in the US to see how many proposed bills there are to regulate the industry in order to try and replicate other areas that have seen a boost after relaxing their rules.

Statistically, does a regulated gambling industry boost economies, and what are the specific benefits of allowing people to gamble responsibly? There are enough locations allowing this that we can now unpack some of the experiences and effects of gambling industries around the world.

The Current Gambling Scene

We rely on estimates and studies for an overview of the industry, and they’re not always 100% accurate, but it is safe to say that gambling has grown in recent years, and there are thought to be a mind-boggling 1.6 billion people globally that gamble in one way or another, whether that means horse racing, casinos, or sports betting.

Watch a sporting event and you’ll probably see gambling sponsors and partners mentioned, as people have the option to bet on their favorite sports conveniently from their phone or tablet, and often stream the game at the same time.

You only have to look at the growth in online casinos to see the growth of technology action, and some online casinos offer thousands of different games that players can explore, all right there in one five or six-inch long mobile phone.

Slot games, and even table games that have been played for hundreds of years are now converted to interfaces that can be loaded on mobile and played in a matter of seconds, using either traditional currencies or cryptocurrencies.

While gambling 20 years ago required going to a physical location or maybe connecting via your browser on a computer, the world of online casino gaming has changed significantly to give players a level of convenience that means they can play any time and virtually any place, as long as it is within the law.

How Can Regulated Gambling Industries Provide Financial Benefits?

There’s always likely to be some debate regarding the gambling industry, and a focus on responsible gambling is the right thing to do, but the financial impacts of gambling industries simply cannot be ignored.

Gambling revenue raised from taxing the companies offering casino and sportsbook gambling already raises roughly 1% of state and local government revenue in the United States, and has grown from around $25 billion to $35 billion annually since the year 2000 (adjusted for inflation) – plus the number is rising.

Following in the footsteps of numerous other states, the citizens of Maine are currently awaiting some big changes, and the gambling industry is set to open up with sports gambling being allowed, expected to raise $3.8 million to $6.9 million in annual revenue for the state through taxation, but there are other possible financial benefits that may come from this such as investment in the region.

Further Arguments For Regulated Gambling Industries

States and governments are opening up gambling and making the restrictions more relaxed for more reasons than just the revenue, though the dollar signs are certainly appealing when a lot of areas need the funds to do positive work.

Some of the other arguments for regulating this industry include:

  • Job creation, as some of the states may see physical locations open too, or regionalized betting companies launching in the areas where gambling is now allowed. Plus, regulatory bodies are needed which can provide even more career opportunities for people.
  • Free will, as this is largely what a lot of people want, and around 1 in 5 Americans surveyed bet on sports in the last 12 months, this figure is in spite of the fact that there are regulations in place in many states.
  • It has been proven successful in a lot of other locations, with plenty of countries as well as states introducing gambling regulations that allow casinos and sports gambling with no significant problems, this has paved the way for other places to follow and take the same approach.
  • There is an industry understanding of responsible gambling, and players can be protected to ensure that they have an understanding of the best practices when gambling at casinos or sportsbooks, helping keep everyone safe and secure.
  • Tourism, as we’ve seen in locations like Las Vegas, some people are drawn to locations where they can play table games and other gambling games, which can bring tourist revenue to the area.

Conclusion

The proof is already out there, with many locations successfully allowing gambling, and this raising money in taxes, boosting tourism, and having other benefits for economies, meaning more locations are considering relaxing the rules. In the US alone, there are many states, such as Maine, on the verge of changing their rules to make it much more accessible and simple to gamble, while providing a boost to public funds.

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