Online gambling has seen massive growth over the past two decades. What started as a niche activity confined to a few countries has become a hugely popular pastime across the world. This rapid expansion has had significant economic, social, and regulatory impacts globally.
Economic Impact
The online gambling industry generated revenues of over $64.8 billion in 2023. This figure is expected to grow at a compound annual rate of 11.5% from 2021-2028, with revenues projected to reach $127.3 billion by 2028.
Several key markets are driving most of this growth:
- Asia-Pacific – Expected to see $102.5 billion in online gambling revenue by 2027
- Europe – Online gambling market exceeded $29.6 billion in 2023
- North America – Fast growing market projected to be worth $24 billion by 2027
The sector has created lots of employment too. The UK online gambling industry employs over 100,000 people, while the EU market employs over 200,000. The global sports betting and online casino (for instance Gametwist Casino Online) sectors provide employment for nearly 500,000 people combined.
Tax revenues from licensed online gambling operators also make a substantial contribution to public finances. Online gambling tax revenues will provide European governments over €23 billion between 2021-2025. The UK alone collected £355 million in tax from online gambling in 2020/21.
Social Impacts
While bringing economic benefits, the increase in access to online gambling has also created some social impacts:
- Increased problem gambling – Research indicates that improved availability and access to online gambling increases the prevalence of problem gambling issues in the population. It is estimated there are over 1 million problem gamblers in the UK alone.
- Underage gambling – The online anonymity makes it harder to prevent underage individuals from gambling. Studies suggest over 25% of 18 to 24-year olds partake in online gambling.
- Increased advertising – To attract customers, online gambling operators spend over £1.2 billion a year on advertising in the UK. This marketing activity further enables and normalizes gambling.
Regulatory Developments
These mixed impacts have led many governments to review and enhance their gambling regulations:
- Licensing requirements – Most jurisdictions now require online operators to apply for licenses to offer internet gambling to citizens. This licensing aims to ensure sites implement responsible gambling measures.
- Geoblocking requirements – Some countries now oblige licensed gambling sites to have geoblocking systems. These systems detect users’ locations and block residents of countries where internet gambling is prohibited from accessing sites.
- Responsible gambling provisions – Regulators are stipulating operators have visible messaging about responsible gambling, allow players to set deposit/loss limits, provide access to support organizations, and have expert staff trained to spot problem gambling patterns.
As internet penetration rates increase globally, particularly in developing countries, online gambling is only expected to continue expanding. Strong, proactive policies and regulations will be essential to maximize the economic benefits of this growth industry while minimizing the risks of increased problem gambling.
The Complex Relationship Between Gambling and Crime
While online casinos like Thereviewscasino can generate substantial legitimate income, historically there have also been close links between gambling and criminal activity. Organized crime groups have often been involved in illegal gambling operations to generate profits. Money laundering of criminal proceeds is also enabled by online gambling sites if sufficient due diligence is not conducted. Furthermore, rates of gambling-related crimes are higher in problem gamblers – with illegal acts undertaken to fund their gambling behaviors.
As countries have legalized and regulated online gambling markets, this has helped curtail the role of organized crime in this sector. But the complex relationship between gambling and crime persists in various forms. Ongoing regulatory oversight is required to both expand the legitimate economic benefits for operators and consumers, while preventing enablement of wider criminal enterprise.