After months of a nationwide lockdown in the US, an economic crisis was inevitable. The country depends on businesses that involve face to face transactions immensely. And since they had to close down for safety reasons, there was little anyone could do to protect the economy.
Luckily, not every industry has been hard hit by the lockdown. Some sectors like online casinos have been thriving amid everything happening in the world. So, should every state legalize online gambling? Could online casinos provide a solution to America’s economic challenges?
Over One Million Jobs
One of the most devastating impacts of the nationwide lockdown regards job losses. CNBC reports over 47 million Americans have lost work temporarily or permanently since March. That translates to 32.1% of the nation being unemployed.
Against that backdrop, there’s a dire need for job creation. Could online casinos be the answer? Legalizing online gaming countrywide would help create at least one million jobs according to financial experts.
To expound, Britain’s online gaming sector employs 107,000 people. And the UK is a fraction the size of Texas. New Jersey, one of the few states where online gaming is legal, has already recovered the 11,000 jobs lost after five casinos shut down in 2014.
Better yet, the Garden State has added 35,000+ jobs since it legalized online gaming in 2018. If every state were to add a similar number of jobs through online casinos, at least 1,750,000 new jobs would be created.
$20 Billion in Revenue
Last year, New Jersey casinos generated $3.4 billion from the casino industry. Pennsylvania’s gambling sector generated an almost equal amount of money. This shows there’s immense potential in the iGaming sector—only that more states haven’t realized it yet.
In all fairness, New Jersey and Pennsylvania host almost all of the best online casino sites in the USA as discussed on the bestonlinecasino.com. That’s because of their progressive gaming laws. They were also two of the top four to legalize online casinos in the country.
With that in mind, there’s hope things will get better starting next year once the economy opens up fully. Britain’s remote gaming industry generates the country roughly $7 billion each year. And as we mentioned earlier, its market is significantly smaller than the US.
Britain has a mature online gaming market, though. And it took decades for the island to have an industry that generates so much revenue. That said, America’s gigantic market means it could dwarf Britain’s gaming revenue in just a few years.
$1Billion+ Tax Income
Online casinos are a taxation cash cow for countries and states that have legalized it. Take New Jersey as an example. It generated $36 million last year through direct tax income from online casinos.
Across the Atlantic, Britain generated $3.8 billion in the same period. The income was an increase from 2018 despite the fact that a new law was introduced to limit betting amounts in the country.
Interestingly, Britain has a significantly lower tax rate than many US states where remote gaming is allowed. New Jersey is an exception with a 13% tax rate although it also charges gamblers. Britain does not.
As an estimate, American states could generate a combined $2 billion if they taxed casinos in the same way New Jersey does. But considering some jurisdictions charge up to 50%, online casino tax could become a critical source of income for many states.
Protection from Future Lockdowns
As the US prepares to open up after months of a lockdown, experts are asking for one thing. America should consider online-based jobs. Not everyone will get employed in the remote gaming sector.
In fact, online casinos are only one industry of the many Internet-based sectors not affected by the lockdown. However, they provide proof that America’s economic future lies online. More people should consider Internet-based jobs for a quick recovery of the economy.
Some organizations like Facebook and Google are a step ahead and will allow their employees to work from home until 2023. These companies believe an online-work environment is feasible and needed to avoid the sort of economic loss suffered this year.
Is it possible for all businesses to move online? Most likely not. However, many industries can move some sections of their departments online. That way, whole industries don’t have to be shut down during future pandemics.
Casino Gaming as a Profession
So far, we’ve said online casinos could add nearly million jobs through professions like dealers, managers and customer service agents. But there’s one more position we haven’t mentioned yet: gaming as a career.
Some people don’t believe it’s possible to play casino games professionally. Yet, professional gamblers exist. A huge portion of them bet on sports and poker. But there’s a small group that also delves into blackjack, slots and roulette.
Professional casino players choose their games carefully. They have strategies, goals, and tactics for maximizing their profits. Some of them also take online classes and subscribe to magazines just to sharpen their skills.
With that in mind, most casino millionaires made their money through sheer luck. They took a risk with a small bet, spun the reels of a slot machine and hit the jackpot. The luckiest winner is a British ex-soldier who won £13.2 million in 2015.
Ending the Black Market
Legalizing online casinos could shutter a black-market worth billions of dollars. It’s already happening according to the American Gaming Association (AGA). Before 2018, the majority of bets in America took place through unregulated casinos.
But after the landmark SCOTUS decision in 2018, black market sports betting has decreased by 25% based on a study by the AGA. The American Gaming Association also discovered 74% of Americans want the country to legalize online casinos.
In other words, the people who drive the black-market are willing to end it under proper circumstances. Of course, the conditions in question include legalizing all forms of online gaming in every state.
Another condition is to provide a friendly tax environment. States could end taxation for player wins or keep it low. That way, casino players will no longer have a reason to gamble at unregulated overseas gaming websites.