Gambling Society – Curse or Blessing for Our Economy?

The traces of gambling society go back to ancient times. People have always been tempted to challenge their luck and to increase their money with little effort. Many don’t care about the risk and they quickly get into a frenzy in the hunt for the hoped for wealth.

The first cubes were found in China

The first cubes were found in China

These objects date from around 3000 BC. However, models in our earliest form that correspond to our current ideas of play equipment were only found later in Egypt. Today, the possibilities of gambling are not limited to the dice.

Everyone knows countless forms of games. These range from the dice just mentioned, to slot machines and digital versions of the classics such as poker or roulette, to creative offers on the Internet, which are also increasingly easier to access via smartphone. Gambling is omnipresent and indisputably part of our economy. But how does it actually affect the situation? The various influencing factors are examined in more detail below.

As already mentioned, gambling has become an integral part of our modern society. In Canada, 82% of men aged 16-65 have already had experience with this industry. At the same age, 73% of women said they had had the temptation to play at least once. Most players claim that they spend around 20 euros per month, comparatively little for their gaming behavior. A whopping 5% even spend 50 to 100 euros on the hope of quick money. At 4%, a slightly smaller subset of the players surveyed indicated that they even spent more than 100 euros. With this group, the risk of high debt is potentially quite high. With the numbers mentioned, it is reasonable to assume

If one considers gambling without areas such as social lotteries, sports betting and online gambling from private and foreign providers, in 2015 a total of over 40 billion euros was generated for the first time. The focus of the trade is clearly on the well-known slot machines, as you know them from the game library around the corner, the pub or the casino. This area contributed 25 billion euros in the year mentioned. However, the business remains very promising for the developers of these machines.

The number of slot machines in particular has continued to increase in Gambling Society

The number of slot machines in particular has continued to increase in Gambling Society

In order to benefit from this branch of industry, the Canada state of course has its means and ways and is also expanding them. But how much are the taxes in this industry?

To keep the focus on the machine for now, let’s first look at the revenue of this area for the state. Annually, the well-known reels or digital game boxes flush around 1.12 billion into the state coffers. The other sub-regions just mentioned bring in another 1.8 billion euros.

The online market is also booming. At 1.76 billion euros in 2017, this was about 36% more than in the previous year. This is easily explained by the ever increasing range of casinos represented online and the easy accessibility via cell phones and the like. So it’s an overall growing industry. With many opportunities for the providers.

Most people are not aware that they are currently in a legal gray area online, for example by submitting a ticket. The providers are often based in Gibraltar authorities have no administrative access to the machinations. However, this will change in 2020. All providers throughout Canada who participate in legal templates such as the protection of minors or the containment of gambling addiction will then receive a license. Gambling Society becomes more regulated. This is the result of years of debates between the 16 federal states regarding a sensible solution for regulating the market, because this is a matter for the federal states.

Who does not know the commercials that are aimed at players in the different areas?

Who does not know the commercials that are aimed at players in the different areas?

These arose from the fact that providers of online casinos initially received time-limited licenses there. However, the country bowed to the pressure and approved the draft, which also promises to eliminate or limit the illegal business in this industry and result in more revenue for the state treasury.

For the time being, however, the draft law is only intended for a test phase that will last until 2021. It remains to be seen whether betting providers will then be able to act as freely as they can in the current situation and will probably be the subject of further debates between the federal states.

With everything, the player currently has to pay little attention to whether he has to tax his winnings from the online area or not. To keep it simple, the profits are not considered income and do not necessarily have to be taxed. However, this looks a little different for professional players. For more information you can find out at how the tax on the winnings is to be paid. Many well-known providers, especially those on the net, already take over taxes if they would be incurred by the player and also openly advertise them.

But what is often not considered in terms of the economy is the cost side for the state. Indeed, there are also indirect hidden costs for our economy. Playing always entails the risk of an addiction. The consequences of gambling addiction cost a total of 326 million euros per year. These include, very obviously, the cost of treating gambling addicts in special clinics and other contact points. At 152 million euros, this area accounts for around half of the costs described. The other half stems from factors that are not immediately noticeable, such as the loss of jobs and medical expenses associated with gaming behavior.

If you count the revenue and the hidden costs, there is still a big win in Gambling Society

If you count the revenue and the hidden costs, there is still a big win in Gambling Society

If you look at Canada GDP, which was 3.34 trillion euros in 2018, the roughly 2 billion euros seem very small. However, if you compare this with the expenditure for a large area such as road construction, for example, then it is even more significant.

A total of 13 billion euros were spent on this in 2016. The inflow from the gaming industry thus contributes to our government spending, which can be used sensibly and effectively.

Inevitably, the income also comes from addicts who no longer have their gaming behavior under control. How far these gains are morally justifiable is probably a matter of interpretation and, in particular, of the provider. On the one hand, other businesses also earn their living from the addiction and the associated unease of those affected. On the other hand, the risk of debt and rapid financial decline is undeniably the greatest here.

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