The impact of online gambling on the world economy

In recent months, the online gaming sector has grown worldwide. In fact, it was one of the hobbies of choice for millions of people during the COVID-19 lockdowns. For this reason, there are many voices that indicate that this increase in its turnover was only a one-time event motivated by the pandemic and the lack of leisure activities for people.

But the reality is that the growth of this industry had already been pushing forward, and it is expected to continue to rise in the coming years.

In some countries such as the United States or Spain, this activity is regulated and supervised by the Government. Companies that offer online gambling services must apply for licenses and pay taxes. In other countries, such as Mexico or Peru, there is no specific legislation, although their leaders are working to develop it.

The impact it has in the countries where it is regulated is very positive. Therefore, below, we explain some of the aspects that benefit from this supervision by the authorities.

A lifesaver to overcome the economic crisis

The COVID-19 health crisis has led to a severe economic crisis in many countries. Restrictions on people’s mobility affected their ability to consume, causing consumption to plummet. In addition to this, the closures due to confinements and the limitations on opening hours and conditions further weakened the income statements of the companies.

The lower the turnover of an economy, the lower the revenue obtained by the Government from taxes. For this reason, in many cases it had to enable extraordinary payments to offer aid to its citizens. Less taxes and more public spending implies a gradual impoverishment of the State and a worse functioning of public services.

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In countries where online gambling is legalized, its high volume of business has contributed to keeping public accounts in a better position. So the first benefit for any economy is obvious: more taxes are collected. And we must bear in mind that it is a very active sector.

To get an idea of ​​how much money you can move, just take a look at a list of online casinos operating in a given country. On this website of an online casino in Mexico it is possible to see lists of some of the best in Mexico, and it is obvious that there are many.

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Employment generation

Depending on the way in which the legislation is drafted, online gambling can also be an element with an important capacity to create employment. In some cases, governments require companies in the sector to have a physical office within the country. Or at least, that they hire a certain number of workers remotely.

Job profiles can be very varied. From non-specialized people who could work in the customer service department to marketing professionals or web developers.

Increased consumption of related products

A collateral effect of the increase in business in the gaming sector is that it also brings benefits to other sectors. For example, banking transactions increase and entities have more opportunities to charge commissions for their services.

Spending on internet connections is also higher. In addition, there are cases of users who renew their cell phones or computers for others that offer them a more satisfactory experience when playing.

In conclusion, we are talking about a new sector that has been able to adapt to new technologies so as not to become obsolete. Without a doubt, the gaming sector has always been present in society, but now it is easier than ever to participate in it.

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