Business

Gambling Business Development: the Main Advantages of Legalization

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The first fruitful year for the gambling market and all its participants has recently come to an end. 10 years of gambling ban have left their mark—at first it was difficult for people to take the industry seriously. That’s why gambling was predicted to collapse and close down soon.

But in just one year, the industry turned from the text of regulations into a full-fledged large-scale legal business—opponents of gambling legalization did not expect such results. I propose to recall how 2021 passed for the gambling industry and discuss the benefits of legalization, check UK online casino review to find more about.

Benefits of legalization

For the state

In a pandemic, unstable economic and political situation, any state needs additional sources of income. And for many governments that previously criticized the gambling industry, today the gambling industry has become an additional source of revenue.

All gambling establishments must obtain a business license, the specific cost of which depends on the type of activity and location. In addition, institutions are obliged to pay taxes. All this ensured budget revenues of about UAH 1.8 billion.

Gambling business also affects numerous related areas. More than 15 industries work in parallel with gambling, the revenues from which, according to some sources, amounted to UAH 30 billion in 2021. For example, a casino pays rent to a hotel for the use of its premises, makes major repairs there and hires thousands of employees—the spheres of recruitment, construction and repair, as well as real estate rental are involved. Thus, this money appeared in the budget directly due to the gambling business.

Legalization of gambling will reduce the level of corruption in the country, as well as eradicate underground business. For this purpose, a system of regulation and monitoring of illegal establishments is being created. Since the shadow business interferes with the normal operation of the legal business, the government and the public control the closure of illegal institutions. Over the past year and a half, the National Police has conducted raids and closed hundreds of illegal gambling facilities. At the same time, the Ukrainian regulator cooperates with cyber police to identify and block illegal websites. In total, about 1500 such resources were detected.  

For the public

Gambling business, like any other sector of economic activity, does not exist in a vacuum. In order to function, it needs to interact with dozens of other suppliers of goods and services, hire and train employees, invest in infrastructure and social responsibility projects.

It is important to conduct educational work so that people do not have a prejudiced attitude towards the industry. For 10 years of the ban, people began to associate gambling with something bad and illegal. But the work of operators proves the opposite. Many myths, in particular about robbing money from addicted people and attracting minors, have already been dispelled by the principles of responsible gambling that all licensees adhere to. Now, those who have dealt with a legal operator can say precisely that it is completely safe for each of the parties.

The opening of gambling facilities contributes to the creation of many jobs—this partially solves the problem of unemployment. Employees are officially employed, provided with a social package, seniority and a stable salary. It is worth noting that the salary in this area is higher than the market average.

Money from the gambling business should be directed to a special fund to finance medicine, education, sports, and culture. In particular, it is planned to:

  • creation of new medical institutions of different directions;
  • financing of educational activities for medical workers to elevate their skills;
  • support for mass and children’s sports, as well as sports for people with disabilities and veterans;
  • construction of sports infrastructure facilities;
  • financing of measures to improve the cultural level of the population, etc.

For business

The gambling business intersects with many other sectors of the economy, including hotel and restaurant business, HR, law, marketing and advertising, IT, tourism, real estate rental, construction, and others. 

Gambling business is destined to develop through tourism as well. Hotels with a certified rating of at least three stars can become gambling venues, and in 2021, more than 50 hotels have received their categories to be able to cooperate with gambling facilities.

Legalization of gambling contributed to the attraction of foreign tourists. For the first time in many years, junket tourism has appeared—the entertainment program of foreign tourists includes visits to gambling facilities.