How online slots are impacting the local economy
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Thousands of players every month log into their casino account to play poker, blackjack, online slots, and other games, putting money into the games and winning it back again and again.
The UK Gambling Commission (UKGA) is the regulatory body in charge of licensing online casinos; and through them the legal and legitimate casinos generated more than £3.2 billion in revenue – with 24.7 million people playing by 2023, which is more than 6.2%.
What makes it more interesting is that this is just for the UK. When you investigate the global situation, the market value was $63.53 billion.
Increased spending in online casinos has a profound effect on the economy – for better and for worse.
For the player, taxes do not apply – which is almost unique in the global casino picture. Any winnings that the player earns does not get taxed, which makes it more attractive.
However, this doesn’t mean that the government is not receiving any benefit from the industry – every regulated and licensed online casino operator must pay 15% tax on all their gaming income. In the 2021-2022 financial year, this amounted to £2.83 billion that went to the Treasury and into funding things like public services and healthcare.
Players themselves might not get taxed, but it could mean that they pay more at the point of play to cover the costs that the casino operators will have, although this is usually just put together with the other costs that are involved in the house edge.
With such eye-watering sums of money involved in the casino industry as a whole, the potential of the online casino, mobile gaming, and technology like virtual reality is ripe for investment. Start-ups and entrepreneurs can get involved financially to get a casino project off the ground, and through partial ownership make some money for themselves.
This investment improves the facilities and services that the online casino can offer, as well as creating employment opportunities.
Even with an online presence, casinos can create jobs. These can include customer facing roles, offering customer support at the end of a phone or on the live chat.
What is also needed for a business like this is that there are other, more technical, roles that need to be filled – marketing and the usual back-office functions, legal teams, programmers, and engineers – and all are generally well-paid with competitive growth opportunities.
This is one of the biggest boons to the local economy, keeping people employed and ensuring that there is more money being spent.
Tourists are a well-recognised part of the UK economy. Despite the problems of 2020, in 2021 the tourism industry accounted for £131.5 billion of the gross domestic product of the UK.
While these tourists are not all visiting the UK for gaming opportunities, it can be assumed that the sheer number of online and physical casino operators, especially around the capital, will have some sort of impact.
Whether in a physical casino or playing online, tourists can also take advantage of the tax-free winnings that the British people have – and that can make a real difference when they might be expected to pay more than 20% in tax on what they win in their home country.
The other benefit to the economy that casino tourists can bring to the local area is the boost to the coffers of hotels, restaurants, and other entertainment venues. Players aren’t going to be on their smartphones playing in the online casino for the whole time they are visiting, so they will want to find other things to do, and other places to spend money.
Of course, we need to be balanced about these things – and the personal and familial cost of wagering can be steep. A losing streak or problem casino gaming can put extra pressure on social services and the public purse, but responsible wagering and online casino companies take steps to help their players avoid these downfalls.
The UK online casino business is growing and developing, with new operators and exciting games being launched regularly.
Innovative technology is making the whole gaming industry better, and with that comes new opportunities for game developers. High-definition animations and video cutaways are just part of this, when virtual reality will soon have you visualising yourself playing at some of the best Vegas casinos, even while you are sitting at home in your bedroom.
With careful regulation and licensing, the UKGA has ensured that this growing industry is paying into the economy, both through the taxes paid to the Treasury and in other ways, including encouraging investments, creating employment opportunities, and even promoting tourism opportunities.
