How the Gaming Industry and Casinos Are Impacting the Canadian Economy and Businesses
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There are 195 countries globally. Canada ranks in ninth place with the best economy. Gaming is one of the biggest industries contributing to the great economy.
According to Canadian Gaming Association, the gaming industry and casinos produced over $17 billion in wins in 2017. The industry has only grown since then, increasing yearly wins to over $25 billion.
This proves that the gaming industry is a strong economic pillar for Canada. This industry impacts the Canadian economy and businesses either directly or indirectly. In fact, the revenue generated by the gaming industry is much more than most other sectors in the entertainment niche, such as movie theatres, magazines, performing arts, and spectator sports.
This article will explore how the gaming industry and casinos impact the Canadian economy and businesses.
Revenue Tax
The gaming industry is subject to taxation. That explains why governments legalize casinos and sportsbooks. The revenue generated from casinos and gaming activities is a valuable source of income for the Canadian government.
Tax revenue may differ from one province to another. For instance, British Columbia takes 75% of slot machine revenue.
Meanwhile, Ontario’s online gambling and sports betting generated over $760 million in revenue tax. Notably, this was a one-year income since online and sports betting launched in April 2022.
Taxes on gaming revenue contribute to public services, infrastructure development, and social programs that benefit citizens nationwide.
Gambling Expansion and Improved Gaming
Gambling expansion does not stop at one gaming facility. In fact, the industry started with one casino and then another. Today, gaming sites are opening at every corner. In a place like the Las Vegas Strip, casinos are everywhere, most a few miles from each other.
The gaming industry’s success has motivated more people and companies to invest in the field. This increases the number of gaming sites, creating healthy competition. In other words, a new establishment must offer something better to attract more players.
Employment Opportunities
Casinos and gaming establishments provide thousands of Canadians with direct and indirect employment opportunities. For instance, Ontario’s online gambling industry employs over 10,000 people. This includes dealers and croupiers, customer service staff, and management positions in direct positions.
There are other people that gambling establishments do not directly employ. For instance, advertisers, companies supplying services and products, and legal firms gain revenue from the gaming industry. In other words, the gaming industry fuels a diverse job market and supports local communities.
Retail and Commercial Real Estate
The establishment of large casino resorts often results in increased foot traffic in surrounding areas. This impacts retail businesses. For instance, if there is any land or building near a casino, the price of the property increases.
These properties become more desirable because they are close to huge traffic. Gamers leave gambling establishments to the nearest businesses to buy souvenirs, try new gourmet, and enjoy a new environment. This grows the economy of the businesses surrounding land-based gaming facilities.
What’s more, the gaming industry is providing jobs to construction companies. Usually, you will find each casino development featuring a real estate developer. Most of these companies lease their properties to casino operators. Others offer their service such as construction and renovations of gaming buildings.
Revenue Remains Home
Gambling was originally illegal in Canada. But this did not stop Canadians from placing bets at offshore gaming sites. Some of these sites would steal winnings from Canadians.
With each province legalizing gaming, most revenue remains in the country. Instead of betting at offshore sites, Canadians can now find a locally licensed site. This keeps the revenue home. Moreover, players are protected from sites that steal from them. Originally, this revenue would go into developing other states. Today, the local government and gaming operators can keep the money.
Tourism
Casinos act as magnets for domestic and international tourists. Canada might not be the most preferred gambling destination like Las Vegas. But, a significant number of visitors still visit the country to play casino games and other sports. Some provinces, such as Newfoundland, are yet to legalize gambling. As such, the residents of this province have to visit other provinces to wager at a land-based casino. This gives a boost to the hospitality sector.
Apart from playing casino games, tourists visit other entertainment and dining venues. They also book hotels, increasing revenues for hotels, restaurants, and other businesses within the tourism industry.
Foreign Investment
Another advantage brought by the gaming industry in Canada is foreign investment. Investors look for thriving economies to invest their money in. As a successful market, the gaming industry has attracted more foreign investors to put money into businesses in the country.
Gambling Addiction
Unfortunately, every industry has its disadvantages. While the Canadiam gaming industry has led to more positive impacts, we cannot forget the negatives. One of the bad sides of the industry is gambling addiction.
More players than we would like to admit become gambling addicts. They are always chasing a win, which leads to more losses. Instead of wagering within their budgets, they use up their savings and borrow some more to wager.
This affects them and their families too. The government also has to spend some of their revenue to treat gambling problem. In fact, each province has to set aside a certain amount to provide problem gambling resources.
Conclusion
The growth in the gambling industry is not halting any time soon. With more people realizing that gaming is a form of exciting entertainment, this industry is set to grow. While at it, the industry will leave both positive and negative impacts.
For instance, some people will gain employment, the state will receive more tourists, the government will earn more revenue to fund its projects, and much more. The gaming industry will also leave negative impact such as gambling addiction. Fortunately, the responsible organizations are already aware of this and have applied some remedies.
So, if you can find a casino or gaming site that meets your needs, create an account and start playing. Better yet, you can invest in the industry or start a business near a casino establishment.
Disclaimer: Gambling involves an element of financial risk and may be addictive. Please play responsibly and at your own risk. This post contains material that may or may not be legal in your country. Please play subject to applicable law.
