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Does Online Gambling Help or Hurt The Economy?

Posted by Drew Hendricks on November 1st, 2012 at 10:47 am

The worldwide economy is in some rough shape, some parts more than others. It’s always been a topic of conversation that if governments started to cut outlets of spending, their financial state would improve. For Australia, that focus has been shifted to casino revenue. With the public’s “kind of, sort of” approach on if gambling is doing enough for the economy for that country, a closer look on past contributions from casinos can provide a definite answer.

First it must be found out what the current economy is like overall. With some help from the UK and the US, the Australian economy has been doing-okay, to put it simply. Since early 2010, it’s been noted that there have been foreign interest in Australian resources that keeps money steadily moving around various sectors while the employment rate slowly rises. You can read the full economic profile right here.

Online casinos, such as Online Casino Australia, have been welcoming Australians to play games such as free pokies and blackjack so long as they aren’t breaching any gambling restrictions for their country. Such hang ups have been a sore subject for Australians, as they cannot openly promote gambling online - gamblers must seek the thrills out on their own should they have the capital to do so and if the site accepts currency other than the Australian dollar. It has been reported by Birmingham Mail that revenue for online gambling has increased by 3.3%, resulting in a total of $400 million for the year.

However, physical casinos fare much better. In 2011 it was reported that revenue for casinos have reached $4.4 billion and up, with electric and traditional table gambling being the most profitable for each of the top thirteen casinos listed. As for government dues and taxes, $1.16 billion was handed over in 2010, though the winners were never taxed themselves (In Australia, the owners are taxed since gambling can’t be filed as legitimate profession).

As they say: Every little bit helps. In this case, Australia uses the taxes from gambling revenue to even out other food and energy costs when it’s  time to add numbers up for the next  year. Since 2002 casinos have been gradually paying higher taxes (Figure 7.1 from here) with payroll being the largest contribution to the Commonwealth. From the same report, tourism from the west (especially from Asian countries such as Malaysia and Japan) have flourished due to casinos being open, with VIP members spending more than the average gambler. Added with the quality of service that each facility holds a high standard for, and it is certain visitors will provide a revolving door effect for annual revenue.

While the online sector for gambling may not be as favorable as walking into a real casino, both contribute just enough for the government not to see gambling as a strain to their economy.

One Response to “Does Online Gambling Help or Hurt The Economy?”

  1. William says:

    In my opinion, I think it helps, even a little bit.

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