The United States has seen explosive growth in online casinos in recent years, bringing in a multi-billion dollar revenue. What was once a contentious and highly regulated sector has evolved into a thriving powerhouse, contributing to the country’s economy in numerous ways. This article explains how the US economy benefits from online casinos.
The history of gambling in the United States is a complex and often contentious. From the early days of lotteries to the rise of casino resorts in Las Vegas and Atlantic City, the industry has gained momentum as more states legalized gambling. However, the birth of the internet in the late 20th century caused a seismic shift in the industry, enabling a massive multiplication of online platforms.
One of the most significant developments in recent years was the overturning of the Professional and Amateur Sports Protection Act (PASPA) in May 2018. In effect, PASPA was a federal law banning sports betting. This landmark decision by the Supreme Court gave each state the right to legalize sports betting, should it choose to do so.
Today, 34 states and Washington, DC, enjoy some degree of legalized sports betting. Online gambling is currently legal in six states, with another six likely to legalize it in the near future. This newfound legal status has brought a multitude of benefits to the US economy.
The expansion of online gambling has resulted in a substantial increase in employment opportunities across various sectors. Besides the direct positions in online casinos and sportsbooks, the industry requires employees in marketing, customer support, software development, audio engineering, regulatory oversight, and more.
According to the American Gaming Association, the industry supports approximately 1.8 million jobs. With the gambling industry creating so many more job opportunities, the US economy will grow through the improved standard of living and additional spending. A significant boost in local economies can be seen in the states where online gambling is legal.
Many consider online casinos direct competition to brick-and-mortar establishments, and there is some truth to this. However, to remain relevant, many forward-thinking casinos include other forms of entertainment, such as live shows, restaurants, and other non-gambling events that online players can’t enjoy.
Some casinos have also established online platforms to benefit from this supplementary income stream. Each new sector of the brick-and-mortar casinos requires additional employees, creating new job opportunities.
One of the most significant benefits of online gambling is the substantial tax revenue it generates for states. Increased profitability of online gambling establishments means increased tax revenue for the states.
New Jersey is one of the earliest adopters of online gambling. In 2020, the industry contributed over $300 million in tax revenue. This indicates how online gambling benefits the government and the community, as it provides additional funding that can be used for education, health, transportation, and many other fundamental sectors.
Even where some states consider gambling illegal but sports betting is allowed in various degrees, it generates substantial revenue for the government. Texas stands out as evidence of this, as the gaming industry brings in over $4 billion of annual revenue.
Online Gambling Business Growth
As online gambling marketing strategies improve, these businesses acquire and retain more and more customers. This drives additional business growth, leading to increased revenues, which the gambling companies can then reinvest into their operations, resulting in repeated economic activity.
This economic growth is not limited to online gambling platforms. It overflows into complementary sectors, such as entertainment, hospitality, and technology, to name a few. The presence of online gambling also makes these states more attractive to tech startups and professionals, further promoting economic diversification and growth.
More Investment Opportunities
Investment opportunities are constantly increasing since the legalization of online gambling. As many different industries begin to boom thanks to the expansion of online casinos and sports betting, they become drawcards to potential investors who understand this sector’s expected exponential income growth. More investment means more revenue.
The online gaming industry drives innovation and technological advancement in various ways. Online casinos and sportsbooks rely heavily on cutting-edge technology to provide a secure and seamless user experience. This led to the development of advanced encryption methods, payment processing solutions, and mobile gaming platforms, all of which have more significance beyond the gaming industry.
Besides fostering technological innovation, online gambling has created a demand for a host of tech-related jobs. This drives the job growth in the technology sector, an increasingly important driver of the US economy.
Traditional casino tourism draws visitors from all over the globe and concentrates them in one place, funneling all that revenue into that state. While tourists usually visit brick-and-mortar casinos, online platforms can piggyback off this benefit. Visitors also use the physical casino’s online platforms. While in the region, they will also spend money at other local attractions, bringing additional funds into the local coffers.
Marketing Sector Growth
Online gambling at sites like Grand Eaglealso brought a new dimension to the marketing and advertising sectors. The competition for customers in the online gambling space is fierce, leading to creative and innovative marketing campaigns. Again, this created job opportunities in advertising, public relations, and digital marketing, contributing to these sectors’ overall growth and benefiting the US economy.
The US economy is experiencing a windfall of benefits from the online gambling industry. What was once a contentious and often underground activity has evolved into a legitimate and well-regulated sector that fosters job creation, generates substantial tax revenue, encourages technological innovation, creates investment opportunities, and increases tourism.
As more states embrace online gambling, the US will continue to reap the economic rewards of this exponentially developing industry. In the states where it is already legal, the economic benefits they have experienced are proof that online gambling has the capacity to transform and invigorate the American economy on a larger scale and is a revenue source that should not be ignored.