By Rebecca Martin
The online gambling market has undergone a huge change over the past years. It has become more popular, powerful, and entertaining than before. As a result, more and more gamblers are entering the sports betting world and making huge profits. But that’s for the gamblers; what about the world economy in general? What are the positive and negative impacts of online betting companies in Europe and gambling on the world economy? If this is what you are wondering, we are here with this complete guide to help you out.
If you are joining the sports betting sector or are already a part of it, it is important to see both sides of the coin so that you stay ahead of the other bettors. Our experts have studied the history of world sports gambling and concluded a few positive and negative impacts on the world economy. Please keep reading to learn more about betting on sports in Europe and its effects on the world economy!
The Situation with Online Sports Gambling Industry in Europe
As per the 2019 report, the gambling market was worth $58.9 billion. However, experts say this figure will grow exponentially over the next few years. Some say that by 2023 it will be close to $93 billion. Even though in 2020, the gambling market got a bit disturbed due to the pandemic, things seem to be alright in 2022 as the industry is booming again.
As far as the European gambling market is concerned, the current CAGR is around 9.20% from 2022 to 2027. Unfortunately, many casinos and lottery outlets were shut down due to the pandemic, and many sports events also got canceled. It led to a worldwide loss in the world gambling market. But now that the situation is better, the European sports betting sector is working hard to bring back the thrill of sports gambling, and we are glad to say they are successful so far. More and more online casinos are developing in Europe, the sports events are also happening as scheduled, giving the gamblers a chance to place their best bets.
If things remain as they are currently, by 2023, the sports gambling market will evolve profusely. Now let us dive into the various positive and negative impacts of sports gambling on the world economy. Stay hooked!
First, let us talk about the positive impacts of sports gambling on the world economy. Before going forward with the online casinos, let’s discuss the influence of the land-based casinos. No matter how popular the online clubs get, the land-based betting shops will stay as popular as it is today. Some places where land-based casinos thrive include Monte Carlo, Macau, Las Vegas, Atlantic City, etc. Each of these clubs requires people to function, meaning more job opportunities for the local citizens. Providing employment is one of the best impacts these casinos have on the economy.
Not just employment but these casinos also help the tourism sector flourish. It is because tourists easily get attracted to land-based casinos as they are one of the best entertainment sectors found in a place. Some resorts also have personal casinos to attract customers and make more money. People who love sports gambling will choose these resorts over those that do not have a casino. This marketing strategy works perfectly for luxury resorts, especially in countries like Macau, where people are crazy about sports betting.
Some countries are specifically known for their luxury casinos. Yes, you guessed it right, we are talking about Las Vegas. In such countries, land-based casinos play a vital role in the country’s tourism and employment sectors. Millions of people visit Las Vegas every year just for their casinos. Due to such a craze for the clubs there, the tourism sector benefits hugely. Many people are also employed to improve the service of the casinos.
People who visit Las Vegas for casinos do not spend 24 hours in clubs only. Of course, they stay in hotels, dine with friends in the local restaurants, visit the local stores, etc. These expenses too add to the country’s tourism and help the economy flourish. If all the casinos are shut down today, many people will stop visiting the country, and the tourism sector will be affected adversely.
Now let’s talk about the online betting companies in Europe and other world places. Online casinos are trending in the current gambling market. The best impact of the online clubs that have affected the world economy is taxes. The economy earns a large amount of taxes due to online casinos. But they are still restricted in many countries because the government thinks online clubs are very easily accessible and are not as safe as land-based clubs. People easily get addicted to online casinos because they are just one click away from spending their savings on sports betting sites.
However, the government is slowly removing the restrictions; many online casinos have been legalized in the past few years. It is all because of the chunk of profits earned by the government due to the online clubs. The taxes that come in are used as an extra profit. Even though the online gambling firms are making comparatively less, the government uses the money to better the country and its people.
Remember, all the money earned by the gambling firm is not enjoyed by them alone. Some firms donate a part of their profit to gambling addiction organizations. Although this does not directly affect the world economy, it influences people’s lives and helps them gamble responsibly. A country that has healthy people physically and mentally is the best fit for achieving a strong economy!
Let us not give you an illusion of everything being positive in the gambling globe. There are, of course, some negative aspects of sports gambling that affect the world economy adversely. As we were saying earlier, gambling addiction is one such negative aspect. Be it online or land-based casinos, there is a high chance for gamblers to get addicted to sports betting. Sports gambling allows winning real money without much effort. Usually, the gamblers learn about responsible gambling before taking part in it, but some bettors are not that cautious. They keep betting and spend all their earnings on it. Some punters also go into debt due to over-betting. There have also been cases where people have lost their homes and close ones due to gambling addiction.
Surveys show that gamblers addicted to betting are found in a huge number compared to those not addicted to sports betting. Some people get so addicted to it that they need to take help from gambling addiction counselors. They also have to rely on the state for financial benefits. Some gamblers get cured after the treatment, whereas some return to where they came from. In some severe cases, gamblers also commit suicide, which is tragic.
Another thing to note is that the money spent on gambling can be used otherwise. For instance, it can be used for dining in restaurants, buying groceries, shopping, etc. When you spend more than half of your salary on gambling, the other local businesses get affected negatively. Also, such land-based casinos with bars and restaurants attached can be a huge threat to the other local restaurants. Such casinos can bring down the market profit of several other businesses, affecting the global economy poorly.
Getting addicted to gambling and overspending on it are the two most problematic issues that affect the world economy. If all the money and time is spent on gambling, the other business sectors will suffer, affecting the economy worldwide.
Best Bookmakers in Europe
Even though gambling has negative aspects, it is entertaining when done within limits, keeping the responsible gambling policy in mind. Just remember that gambling is not a way of making money. You need to enjoy the sport and participate in the betting events without getting too engrossed about whether or not you will grab a win. Now you must be wondering which online European betting sites are the best for you. Well, we have listed a few below:
- William Hills
- Mr Green
After choosing the best betting site in Europe, create an account and start placing your wagers. If you do not enjoy online betting, you can visit the land-based casinos. They are entertaining, especially for extroverts who love meeting new people and bonding with them. Remember, nobody is forcing you to take part in betting. Do not do it under peer pressure or just because you want to be cool. Taking part in gambling should be your sole decision. So are you going to participate in sports betting? Do let us know your thoughts on this!
About the Author
Rebecca Martin is a great gambler who knows all about the betting industry. Her guidance has helped many punters achieve great success in sports gambling! Her recent surveys helped people discover the global impact of gambling on the world economy. Besides that, her work is also praised among gamblers worldwide because of her widespread knowledge.