For many years now, the issue of legalising gambling has been a campaign issue for those holding public offices. Still, eventually, the decision boils down to the pros and cons of gambling. one thing has been sure of almost all countries, including the highly religious ones: gamblers will find a way to bend the rules, however much you stifle them. For this reason, some European countries have looked into the economic impact of casinos and decided to legalise them. They lose way too much money from illegal gambling, so why not regulate it for the good of the nation?
The Economic Impact of Casinos
There are several positive effects of gambling on the economy, as records have shown. The United Kingdom Gambling Commission regulates gambling in the UK, and over the years, the online industry has been creating thousands of jobs for the country’s people. Other areas that feel the benefits of gambling legalisation are Isle of Man, Malta, Alderney, and Gibraltar, and lots of jobs have been created here too. In 2010, the industry contributed £6 billion to the UK economy, but the numbers have gone down since. Last year, about 2.8 billion GBP was realised as revenue, which was still a little lower than the year before.
While revenues from gambling are now significantly lower than ten years ago, they are still substantial and contribute significantly to its tax income. Apart from taxes to the government, some people have made gambling their primary income-generating activity. They have set up websites for predicting odds and sharing gambling strategies and built entire businesses from these activities. This means when you bet at an online casino UK, you are contributing to the jobs that at least 100 000 people hold. Even with the freedom, it behoves gamblers to play diligently to prevent addiction even in a regulated market.
The casino economy in the UK got more significant when the government netted sports betting. Gambling companies now pay 15% tax on their gross profits when players bet on sports. Players do not pay taxes on their winnings, which is why the industry thrives as it does here, but they are still protected in the guidelines of the licenses these casinos follow.
Pros and Cons of Legalized Gambling
Here’s our take on legalised gambling.
· The casinos are regulated and licensed, which translates to player safety.
· It encourages tourism that leads to job creation and positive effects of casinos on local communities.
· It can be taxed as an industry to contribute to a country’s GDP.
· Can lead to addiction.
· Online marketing of casinos rouses the curiosity of kids and younger people since it’s not properly regulated.
· May affect smaller businesses since casino complexes also house restaurants and such establishments.
Can you Place Bets Offshore?
Even with the UKGC regulating the UK market, there are still some offshore casinos in this market. Some are initially from the UK but registered offshore to avoid the tax burden. The commission of domestic taxes is fully aware of this, so now, even the offshore service providers pay the 15% on gross profits that their home-grown counterparts pay. The good thing is that players enjoy the same privileges as UK casinos: no taxes on their winnings, and the sites must be licensed.
Can gambling be a job? Some professional poker players would say yes. In countries that tax incomes from gambling, one is expected to declare their winnings from games treated just like any other income. They can also deduct losses from gambling from their taxable payments. In the UK, where winnings are untaxed, players do not have to worry about this. We have seen the commercial gaming expansion in some countries to include live sports that are then taxed appropriately, so the field for gamblers is much bigger now. If you think of it, you can gamble professionally and make it a career if you are disciplined enough not to fall into the addiction trap. Most gamblers have won vast sums of money that they lost due to indiscipline gaming and greed. If one can strike a balance, they can make money from this activity continually.