Amongst countless epithets used to describe the industry of casino and gambling, one in particular stands out – controversial.
For centuries, the debate about gambling has seen experts and laics alike try to convince people that this sort of entertainment, albeit lucrative, brings more harm than good to people involved in it. Most countries frown upon it, harshly condemning all activities tied to this form of entertainment.
Nevertheless, the existence and popularity of gambling cannot be argued, as all debates about the topic always come down to solid facts – gambling cannot be exterminated.
And what do you do when you realize how profitable gambling is?
You legalize it.
Rows of countries that have included casino legislation are living proofs that legalizing gambling and its related activities can greatly benefit the government and the economy of the whole state.
A great example where the popularity of commercial gambling is evidently rising is the USA. Currently, 7 states have formulated legislation pertaining to the online casino industry. What was once generally perceived as a mainly closed off area when it comes to gambling, today is known as a gold mine of the online commercial casino industry.
Countless questions arise surrounding the subject, but the first one that is in focus is Why is this happening? Immediately followed by How can this benefit the countries?
The question of legal gambling has been a topic of interest for many experts trying to solve the mystery of economic effects of casino gambling for years.
The Positive Aspect
The most obvious example of how the introduction of online gambling can be beneficial is tax revenue. Casinos face higher tax rates, so the amounts of money that return to the government in the form of tax payments can reach millions. Tax payments returned to the country imply that more money is in store for each city or state that legalized it beforehand. That, in turn, can be spent on city facilities, reconstructions, and openings of establishments.
Another reason is the significant increase in the employment rate – each and every gambling facility requires hundreds of workers for numerous positions and opening a new facility would bring more jobs for people than before.
The third reason why legalizing gambling can benefit a state is an improvement in the tourism area, as more and more visitors are attracted to places where they can play without the law frowning upon them.
The Outcomes
The best example that unites all three ways is the example of Atlantic City. In 1972, casino gambling was introduced as completely legal, although it was restricted to only Atlantic City. All casino activities were allowed to take place only within the city limits. New Jersey has a long tradition as one of the least restrictive states but in 1978 when all that was inconceivable, the first Resorts Atlantic City casino was opened.
Online betting in New Jersey was instituted in New Jersey in 2013, which enabled some of the best US online casinos to connect with existing land-based venues and further help the growth of Atlantic City. The introduction of online establishments in Atlantic was one of the catalysts for city growth – the revenue from casinos went to the state officials for hospitals and schools funding. The city growth was fuelled by tax money that came from casinos.
As for employment rates, statistical data from the year of 2018 suggest more than 30,000 workers were holding positions in the casino industry in the Atlantic City. Right now, 7 casinos are operating inside Atlantic City, 2 being new additions from 2017. The newly opened casinos induced spikes in job positions, and the more casinos open, more job openings will happen.
The opening of the casino market can positively affect the tourism branch as well. Tourism is an important part of the U.S. economy, as millions of tourists visit the USA per year. Nevada, one of the states where land-based casinos are legal, is one of the most visited states.
The Definitive Yes
The logical conclusion is that legalizing commercial gambling across states is very beneficial. There’s another fair point to be made- if one state chooses not to legalize gambling, another one will, so that will drive the players and visitors to other countries. Better known as defensive legalization, the move to legalize commercial gambling within one state is driven with the need to keep the consumers within one state instead of letting them go to other, neighbouring countries where they can bring profit.
A case in point is Las Vegas. One state that is the epitome of gambling heaven where players from all around the world gather to taste the ultimate gambling experience where they can play for fun, spend money, enjoy shows and various other perks valid only within the city limits.
Another important thing to note is not only the popularity of land-based casinos but the online gambling community which is on a rise. In 2013, New Jersey passed a law under which online gambling was legalized. In the first 5 years of active service, the revenue gathered almost reached a billion USD.
And that is just the beginning – the rise of online gambling scene is following an upward trend, experiencing exponential growth. Studies suggest that revenue gathered from online gambling will surpass land-based casinos in the next 5 years.
