The casino industry is valued at several tens of billions of dollars. But, unfortunately, many small and medium-sized countries cannot boast annual budgets.
The value of the casino industry will continue to grow, and by the end of 2030, it could well pass the 100 billion mark. The unaccounted income generated by players of Indian casino online using cryptocurrencies is worth mentioning here. What is the real impact of the casino industry on the global economy and India’s revenues?
Casinos are closely linked to tourism
Cities popular with tourists can expect to generate the most revenue from land-based casinos. In addition, many people on vacation want to experience the entertainment these establishments have to offer.
Here it is worth mentioning the many millions of customers from countries where legislation severely restricts or completely excludes gambling services. A vacation trip is practically the only opportunity to visit a land-based casino for such people. There are cities around the world that could live solely on gambling revenues. We will, of course, mention Las Vegas, Macau, Goa, and Monte Carlo.
Improved tourism and increased budget revenues are not everything. A large land-based casino can even create several hundred jobs. In the case of several casinos, there are more than a thousand jobs. It certainly helps to reduce the unemployment rate in a given city.
In a broader sense, land-based gambling can significantly impact the functioning of the entire economy. Tourists visiting typical resorts with casinos also pay for hotels, restaurants, and other entertainment venues. Of course, this significant influence of gambling only occurs in the case of cities that are famous for their exclusive casinos and thus attract customers from all over the world.
How much is the gambling industry worth?
In 2019, the entire gambling industry was valued at nearly $60 billion. That’s more than half of our country’s annual budget. In 2020, however, the industry’s value dropped drastically due to the coronavirus pandemic. As a result, land-based casinos closed for an extended period, and the sector grew solely through online casinos in India.
In 2021, we are still struggling with the effects of the pandemic, so the outcome is likely to be much lower than in 2019. However, experts suggest that the entire industry’s value could fluctuate between 80-90 billion over the next few years. By the end of 2030, the 100 billion mark is likely to be crossed.
The economic impact of online casinos in India
For years, many online casinos in India for rupees avoided paying taxes by registering in tax havens such as Cyprus and Malta. However, many countries have imposed licensing and restrictions, which mean that only licensed operators can provide gambling services within the country. And many casinos do take the opportunity to legalize their business thoroughly. Although it involves paying a certain amount of revenue, offering services to a more significant number of players is a lucrative solution.
In India, as you know, the Gambling Act is stringent and imposes a monopoly on gambling services. The only legal casinos in our country are Goa, Sikkim, and Daman. The casinos there still bring a lot of money into the state treasury. Here, however, it is worth noting that some players still prefer to “bypass” the law and use the services of foreign operators, so it’s challenging to define gambling income received in our country.
The benefits of offline casinos
In most cases, casinos combine hotels, nightclubs, restaurants, entertainment centers, health salons, and shopping centers, and India is no exception; there are quite a few land-based gambling establishments in the country.
Gamblers spend far little money on gambling itself than they do on different favors, health therapies, cafes, and costly stores. Besides, given all the tariffs, gambling countries, including both land-based casinos and account registration, can improve their infrastructure.
The Impact of Gambling on the Economy
Well, it’s time to briefly summarize and list the individual benefits to the economy without separating land-based and online gambling. Here they are:
- Taxes from gambling provide a generous infusion of funds into the treasury,
- Casinos promote tourism and have an impact on other industries (hospitality, catering),
- Casinos create many jobs,
- The gambling industry also includes companies that provide turnkey solutions for casino games, security, mobile applications, or payment methods.
- Large casinos donate a portion of their revenue to charity.
Online casinos are constantly experiencing impressive technological advances that directly impact the number of players and the revenues generated. Thus, it is safe to assume that the actual value of the gambling industry to the economy as a whole will continue to grow.
Why European online gambling operators are moving to India
First of all, India has one of the broadest Internet footprints in the world. It is estimated that there are over 500 million active Internet users in the country. This population can bet at any online casino or bookmaker if it is an offshore company. In addition, India’s gambling market is currently valued at about $1 billion, with experts predicting 41% growth annually. Now, this market is too good to ignore!
You’re also likely to see more online casinos in India because many software developers create games specifically for Indian players. Popular Indian online casino games like Teen Patti and Ezugi Andar Bahar are now a mainstay of most European gambling sites. In addition to Ezugi, Evolution has also released two Indian-style table games, Bollywood Blackjack and Bollywood Roulette.
Finally, many bookmakers and online casinos accept and make payments in Indian rupees. And that’s not to forget that most of these websites are available in Hindi. So overall, the potential for the gambling industry in India is enormous.
Slots as the most popular entertainment in casinos
Slots, including online slot machines, remain the most popular form of casino entertainment in India and around the world. In 2020, rupee revenues from playing various slot machines accounted for about 70% of the entire gambling market in India. The phenomenon of slot machines is that the chances of winning in them are the lowest of all the many types of gambling, but it is on slot machines that players play the most. The main explanation for the popularity of slot machines is that when playing on a device, the player knows almost immediately whether he has won or not.
The Indian gambling market is predicted to grow dynamically in 2022 as it has in the last decade. However, even though land-based casinos have slightly decreased in revenue compared to previous periods, they still contribute to the Indian economy.