Real casinos, as well as their virtual counterparts, located on the world wide web, have long taken a leading position in the entertainment industry. This, in turn, led to the fact that, being important assets in the world market, gambling establishments bring good income, which, of course, in the case of legal functioning, goes to the state treasury. Today we would like to understand the question: ” how does the casino affect the economy ?”.
Influence of real gaming clubs
- Offline casinos are entire entertainment centers where everything is done for the convenience of visitors, most of whom are usually tourists. Jobs, considerable tax deductions to the budget – these are just a few of the benefits of the gaming zone for the host country.
- Such famous places as Las Vegas or Macau attract crowds of tourists not only with gambling entertainment, but also with an eternal holiday atmosphere that seems to be in the air. It is always profitable to sell people a holiday – an example of this is the same rich state of Nevada with its unique Las Vegas.
- In some states, especially those with strong religious traditions, gambling is prohibited or restricted by numerous regulations. An example is the Arab countries and the People’s Republic of China, which, according to experts, is considered the most promising market for the development of the gambling industry.
- As you know, Las Vegas is located in the desert, and the state of Nevada itself was once a depressed region. The construction of gambling establishments and surrounding infrastructure has become a powerful impetus for economic recovery. Part of the population was provided with jobs, and the treasury was replenished with regular tax deductions. Macau is an autonomous region within the People’s Republic of China and is a major port and transportation hub. But today, 70% of Macau’s income comes from gambling. Paying attention to this experience, today many states are thinking about legalizing gambling activities.
- The reality is that a total ban on the gambling business does not lead to its destruction, but to going underground with the accompanying loss of control and criminalization. This makes the authorities of different countries think about bringing the casino out of the shadows. It can be argued that in the coming years, the trend of gambling legalization will only increase. It becomes clear that the decriminalization of the gambling industry requires giving it an official status.
- Answering the question ” How does the casino affect the economy “, one can unequivocally answer that legalized gambling houses have a beneficial effect on the economy of the state in which they are located.
Crisis and gambling:
- According to the current tax legislation of USA, offline casinos can only be opened on the territory of specially designated gambling zones. Currently, there are four legal casinos. Tax deductions that come from the gambling business are calculated as a tax on imputed income.
- In other words, if your casino has 10 poker tables, at the end of the reporting period you will have to pay tax for each of the tables installed, regardless of the actual profit. The same scheme is used for slot machines. Thus, the opening of each new casino has a positive effect on the US economy.
Economy and online casino
In economic terms, virtual casinos are less profitable for the state, but very attractive to players. Moreover, they are so attractive that casinos in Las Vegas, Macau or Atlantic City close one after another. Online casinos, while paying minimal taxes from their activities, at the same time allow their fans to hit really big jackpots. This is especially true for machines with progressive jackpots. It should be noted that it will have a positive impact on the economy of the state only if the activity of the establishment is legalized in the country. That is, if the state issues licenses to operators that can provide their services to residents of this country. Let's take an example.
- Let’s give an example of the potential impact of online casinos on the economy. Suppose that online casinos are legalized, and operators receive licenses to provide their services.
- So, casino Guts has received a license to operate and provides its services by paying entry fees and paying for registration. By providing the highest level of service and making instant automatic withdrawals to popular payment systems, Guts will soon gain a leading position. Players will not register in underground casinos, since the quality of service in Guts is much higher.
- Guts will pay the taxes and fees required by current law, replenishing the budget every time players win money. And if a player hits the jackpot, then the amount of deductions will be large. Thus, the casino will have a positive impact on the economy and the well-being of its citizens.
Instead of a conclusion
Unfortunately, gambling on the Internet is still not regulated and there is no legal algorithm for opening and operating an online casino. Until the legal aspects are brought into line, the operation of online casinos is more likely to harm the economy. The gambling entertainment industry, whether it is real casinos or online sites, within reasonable limits will not harm either the health of the players or their financial well-being. Everything needs a measure, and then gambling establishments will bring considerable benefits to both the players and the state treasury.