The Impact of Sports Betting on the World Economy

Sports betting continually strengthens the economy of some of the biggest countries in the world. Many of them have an incredibly organized and legalised betting sector which brings in millions if not billions every year, especially in Europe.

Sweden has some of the most progressive gambling laws in the continent. Since 2002, online gambling has been legal all over Sweden with the sector overseen by their gambling commission Svenska Spel.

Staying in Scandinavia, Finland’s pro-gambling stance has also positively affected bettors and the economy. Their sector is regulated by three government-owned organisations: Fintoto, Veikkaus, and RAY. They each play their own unique role overseeing land-based casinos, lottery, and horse racing respectively.

The UK may have some of the most liberal gambling laws in the world, however. Gambling has been legal in the UK since as far back as 1845 and whilst there have been many changes to the rules and regulations since, all forms of sports betting and casino gambling have remained legal ever since. Regulated by the Gambling Commission on behalf of the government’s Department for Digital, Culture, Media and Sport (DCMS) under the Gambling Act 2005, the keep children and adults protected from problem gambling as well as allowing sportsbooks and casinos freedom in innovation.

⚡ Comparisons

North America have much more stringent gambling laws, though the US are stricter than the Great White North. The States finally set their foot in legal sports betting back in 2018 when the Supreme Court of the United States ruled in favour of the state of New Jersey in Murphy vs. NCAA. Since then, over 30 states have legalized some form of sports betting though the rules remain strict compared to their counterparts in Europe.

Canada’s landmark senate act in June 2021 approved legal, single-game wagering for the first time in the nation’s history. Before then, sports bettors were limited to a minimum of two-leg wagers. The new law has allowed much more freedom for sportsbooks and bettors alike, though there is still a lot we could learn, especially when looking at the numbers.

There has been a growing trend of legalized sports betting in the last couple of years. Every time a bet is placed, the money wagered directly contributes to the GDP of the country. In pretty much every country with legalized gambling there are significantly big tax levies applied to gambling companies. In fact, in some countries including the US, even bettors’ winnings are taxable by the government.

The gambling industry as a whole has now reached an estimated worth of an incredible $200 billion and America alone have contributed majorly since legalizing sports betting. An oxford report found that the legalization of sports betting would contribute between $11.6 billion and $14.2 billion to U.S. gross domestic product (GDP) annually.

There are also plenty of other ways that sports betting helps the economy that many of us may not even think of. For example, the number of jobs that it creates for the general population. The same Oxford report estimated that around 152,000 jobs would be created by the roll industry as a result of its legalization. These jobs alone would pay around a $6 billion in total which of course means more tax dollars going back into the nation.

The advancements in technology that have been utilized in sports betting has also allowed for far easier and faster wagering. This means that instead of visiting land-based casinos to place your bets, millions can wager from the comfort of your own home or anywhere for that matter if you have a smartphone. This ease of access has brought in additional revenue for the industry and has helped to increase the number of people who get involved in sports betting.

Legalized sports betting near on eliminates the need for a black market on gambling. Not only does this make betting on sports far safer for everyone it also generates a monumental amount of money for partaking countries.

Any country that completely illegalizes sports gambling, whilst maybe for the specific reasons, are missing out on what could be a gigantic money maker to help strengthen the economy.

The industry has grown exponentially in the last decade and will continue to do so as more countries roll out legalized gambling and more liberal regulations. As technology becomes more and more sophisticated, the sports betting experience will also improve and help to draw more fans into betting on their favourite sports. The economic benefits of this are undeniable and as the industry continues to grow every year, it is fast becoming one of the most lucrative industries in the world.