The gambling industry is huge and it encompasses sports betting, casinos, and lottery. We are usually associating it with casino entertainment and with Las Vegas though, which is admittedly the aimed high-end version of gambling. The hobby is clearly way more affordable and available all over the world, but it also plays an important role in the economy.
This is especially true for the US, as they have seen a rapid rise in the iGaming industry over the past few years. But we must also mention that people are somewhat divided on this topic and debating whether it should be legal. So, let’s see just how much of an impact the gambling industry has on the US economy.
How Much Money US Citizens Spend on Gambling
Some forms of gambling, like the state lottery, are approved by the majority of states mainly due to its impact on the economy. Casino gambling is usually approved in states with a high number of visitors or tourists. That being said, US citizens spend a lot on gambling, and in the second quarter of 2021, the gambling revenue was more than 13 billion dollars. According to the American Gaming Association, this was a new record.
A great portion of that revenue comes from sports betting and fantasy sports. Both of these are available online and are really accessible. As far as online casino games go, they are only available in a few states, and the sites are usually hosted by off-shore gambling companies. People usually play in one of the top 20 online casinos that accept US dollars and allow players from the US to participate. It’s important to note that these businesses are not in the United States, so they do not contribute to economic growth. The only thing worth examining is how much of the potential revenue America is losing by not legalizing online casinos.
Tax Revenue from Casinos
In 2018 the collective revenue of the casinos in the US reached 9.7 billion dollars, and it only continued to grow. These were just casinos though and as more states are opening up for remote gambling businesses these numbers will reach new records. The tax revenue is used for different projects or programs, and a lot of it is funneled towards improving education. That being said, casinos also fund various projects, as a part of their branding campaign.
Employment
Source: Unsplash
We should also remember that it goes beyond just tax revenue. Lots of these casinos are accommodation resorts that provide other services on top of gaming entertainment. This means more construction jobs, more people who will work as croupiers, bartenders, chefs, cooks, etc. In fact, some of the best places to spend your vacation and dine are casinos in Las Vegas, and lots of guests don’t even gamble. These establishments also organize live music events and even host e-sports tournaments.
According to data from 2018, over 1.8 million people were employed in the gambling industry. This is definitely not the case with online casinos, which need a smaller team of people to keep things running. Moreover, expansion of online platforms doesn’t necessarily mean more jobs, whereas expansion of the land-based establishment usually does.
Should Online Casinos be Legal?
Unfortunately, there is no right or wrong answer to this question, and it mainly depends on people and how they feel about it. There are lots of arguments to support these businesses and methods that enable them to increase the number of people they employ. Lots of countries demand that a casino needs to have a physical presence in their country before they are allowed to host the website.
However, if you live in a place where there aren’t many gambling enthusiasts, you are not necessarily doing the economy a favor. In the UK the revenue from gambling is also high, but only a small portion of that revenue comes from the Welsh market. Meaning, you could potentially create a higher level of dissatisfaction among the citizens of certain states, and only get a minor economic impact in return.
Conclusion
Clearly the US economy sees the gambling industry as a strong ally, but allowing each state to decide on its legality was the right move. It’s also worth pointing out that many sports betting fans from the US don’t view sports betting as gambling. It’s an activity where you are rewarded for making an informed decision, similar to trading on the stock market. This explains why people in some regions are more open to these ideas while strongly opposing casino games.
