If you’re not into sports betting, you might not be aware just how massive it has become. Today, we’re talking about one of the biggest industries tied to sports. It is huge! While it would be hard to estimate the right numbers, we are talking about millions wagered every day. For folks who are betting daily, it doesn’t matter if we’re talking about a Spanish lower division promotion bout between UD Ibiza and Andorra, or League of Nations Final between Portugal and Spain. When it comes to sports gambling divisions and status means little to you average bettor.Â
With the state of sports, and the rise of online sports betting companies, the intertwined roads between sports and gambling can no longer be neglected. One influences the other on a massive scale, and the money involved is putting sports gambling on the economic map of the world. With things being like that, we can openly say that there are both positive and negative sides to rapid development of sports gambling.Â
How Sports Gambling Reached the Heights it Has?
Sports gambling is not a novelty on the financial markets. It has been around for some time. The one thing that stood in the way of its growth was the issue of legalization. For some time it has been illegal in some parts of the world. Nowadays, more and more governments are opening their doors to sport betting as it reflects on the local economies in a positive way despite some negativities. In areas where it was fully legalized its influence on market growth can’t be neglected. When you add the fact that today online sports betting is dominating the domain, the spread of this industry was made even easier. It is no longer required to go to a physical location to make a bet and tae a slip in your hand. Everything is done online through platforms such as Stake.Â
As we mentioned, your average sports bettor will wager on both the local sports games, but also on major sports events such as the World Cup, Super Bowl, or the NBA Finals. Of course, the latter major sports events will attract millions in bets compared to some local matches. Yet, there’s no denying the fact that the sports betting market is a global one which continues to expand. Today, it is possible for a player from Brazil to bet on a football match in Bosnia & Herzegovina. It is a global market, and it grows by the day. With the expansion of sports gambling we’ve encountered many positives, and a few negative influences that can be seen through an economic picture. Let us walk you through them both.Â
Positive Impact on the World Economy
Pardon us, but it’s too early to focus on negative issues. Also, at the end of the day, the growth of sports gambling has more positive sides than negative when it comes to both individual and overall economic influence. So, let us start with its positive impact on the economy of the world.Â
Tax Revenue
The biggest companies in the world of sports gambling are completely legal. There are no benefits to them to work on the black market or in the gray legal area. Even the online sports betting providers operate based on casino licences from Curacao, Malta, and even the UK. Also, governments are more than eager to legalize gambling as tax revenues that come from it are massive. There’s money to be made for tax authorities from every bet made. This money can later be used to build schools, roads, hospitals, or to be invested in the infrastructure of a country as a whole. For countries that are not big players on the economic market of the world, this influx of money is massive.Â
In developed countries where sports betting is a part of the culture such as the UK, the tax income from gambling is measured in billions on a yearly level. Even in the United States of America where online sports betting was illegal up until recently, the increase in tax revenues since legalization has been noticeable. Back in the day you were only able to wager in Las Vegas or at tribal casinos. Today, this picture has changed, and tax authorities are the one benefiting the most in addition to players.Â
Job Markets GrowthÂ
You may like it or not, but sports gambling creates jobs, and it does it un numbers. Gambling industry can;t operate on its own whether we’re talking about physical locations or online casinos. They need people to operate smoothly. Betting companies hire people to create and manage their websites, develop games, be a part of the customer service, do tech support, be dealers in online casinos, or operators at physical locations. Furthermore, there are jobs in regulation and security too. Sports gambling has become a massive industry whether we’re talking about an online sports betting outlet registered in Malta or a physical casino in Las Vegas. Today, it is a sector where millions of people are employed and it keeps growing, requiring even more people to become a part of its economic organism.Â
Boost to Sports Leagues
While many people are against the influence sports betting has on sports in general, we beg to differ. Sports betting is an ideal way to increase the interest in a sport through a few simple wagers. Trust us when we say it, a person who bets on a sports event has higher chances of actually watching the match. This doesn’t only increase the viewership but also puts more eyes on a certain league or a sport, get more money to the sport from TV rights with enough eyes on events, rakes in sponsorships, and increases ticket sales. While some of the biggest leagues in the world do not require additional attention as it is, for smaller markets and some niche sports this can make a difference between surviving or folding. Any sport that is open to betting has better chances to attract viewers. Sports betting is one of the main reasons why cricket, as an excellent example, finally started to gain traction outside of countries such as India, Australia, South Africa and the UK.Â
Tech Innovations
If you’re even remotely into sports betting, then you know that online sports betting outlets are taking the lead in this domain, and are dominating the gambling market. For online gambling companies having strong tech support is vital. They need high-end tech to ensure seamless flow of their services, as without it, the customer base gets inpatient, and is more than eager to change allegiances if a company is not up to technology standards. Online sports betting companies invest millions into matters such as data tracking, payment systems, and most of all high-end mobile apps. They are pushing domains such as cybersecurity and data science to grow as the need for the increases with each passing day as far as online sports betting goes. Some of the tools developed for online sports gambling are now used in other industries too. People usually believe that gambling only benefits itself, but we live in an era where nothing exists on its own, and the connection between sports gambling and technological development cannot be neglected anymore.Â
Support for Public Awareness Programs
Providers of sports betting are not some evil conglomerates. It is a business like any other. Yet, they remain aware that there could be negative consequences to some individuals who take the game the wrong way. This is why the majority of major companies that engage in soccer betting do an amazing fork in creating and supporting public awareness programs that serve the goal of raising awareness to the issue of responsible gambling. Both the companies and governments work together to push some of the money they earn toward supporting lines, educational programs, and treatment centres. All of this is done with a purpose of keeping the players informed, and reduce any possible harm sports betting could create unintentionally. When gambling is operating through legal means this support is easier to both fund and support, and above all else make it available to those in need.Â
New Business Opportunities
Sports betting, and especially the online version is opening the doors for many startups. It even requires them. Just look at the number of new apps rising every day, tipster services, tools used to compare the odds, and various other data services. As if that’s not enough, how about numerous influencers and content creators who also make money by streaming or running YouTube channels in which they provide betting insights, and review your bets. The market doesn’t only change, it grows by the day. Thanks to this development, there are new ideas around sports gambling coming to surface. Many smaller companies have found ways to grow right next to the world of online sports betting.Â
Negative Impact of Sports Gambling on the World EconomyÂ
As you saw, the positive sides of sports gambling on the world economy are more than important. While revenue is massive and it keeps growing, and gambling affects other sectors too, we will not hide and claim that there are no negative effects. There are, and we’re going to dedicate a few words to the negative impact sports gambling can have.Â
AddictionÂ
When it comes to gambling, addiction is the biggest issue plaguing it. If you take into account sports such as soccer, basketball, or tennis which are popular in all parts of the world, there are certainly people who will take sports betting too seriously, and wager outside of their means. It is important to note that not every person who engages in sports gambling is going to get addicted. It is not how it works. Some folks are just susceptible to falling under bad influences, and they can get addicted. When they do, the consequences can be rather serious if not addressed.Â
The negative effect of sports gambling on the economy is seen through addiction as dealing with it requires attention from healthcare systems, legal authorities, and social services. Addiction is directly countering the positive effect of tax revenue from sports gambling. This is why gambling responsibly needs to be paramount for anyone making even the smallest of bets.Â
Loss of Productivity
At the end of the day, sports gambling is one of the purest forms of entertainment. It’s fun! Boring days at work can be shortened with a few casual sports bets, and with the development of fast Internet and mobile devices, you can now wager anywhere, anytime. This can lead to a loss of productivity which with time can become noticeable to your employer leading to getting fired. When someone develops problem gambling it takes time to get solved, and dealing with health and mental issues gambling can cause may require taking some time off from work.Â
Illegal Markets
While sports gambling is mostly entering the legal waters, it is not all that easy to get rid of the black markets. They still exist, and in some parts of the world are running amok. When there are no regulations there are also no taxes imposed. The only money to be gained there is for people running these shady businesses, where even the players remain unsure whether they will receive their payouts upon winning. When you learn that these online establishments are usually run by criminals you have no choice but to feel uneasy. Illegal betting is a backdoor to match fixing and different kinds of fraud. With it the integrity of sports can be hurt, and with it compromised we can even start doubting fair play, making the economic impact less important than these issues.Â
Bottom Line
Sports gambling has a positive effect on the world, people, and economy around itself, but it is not without downsides. It can boost any economy, create jobs, and increase interest in certain sports. Yet, it is not without negatives we’ve listed above. The good part is that the positives will keep on growing, while the negatives are still in our hands to be dealt with. All it takes is a bit more effort on all sides, people, governments, and betting companies working together can minimize the negatives to the point of them not existing in the foreseeable future.
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