Financial crisis boosts internet gaming industry but costs economy
Land based casinos and other entertainment businesses are feeling the pinch as their fortunes wane, the internet gaming industry is waxing. Global Betting & Gaming Consultants said earlier in the week that the costs of fuel and transportation will affect casinos around the US. According to Warwick Bartlett of GBGC, the UK has missed a major opportunity to attract the global internet gaming market. Offshore operators use tax savings on marketing efforts and are gaining an ever growing client base.
High energy costs, low cost of broadband internet connection and a smoking ban in all licensed premises in most countries around the world has played into the hands of the internet gaming operators. Land based businesses cannot compete with the value on the internet.
Prof JW Kindt, professor of business and legal policy says that a ban on internet gaming would boost the economy. He says that it is merely cash that changes hands from gamblers to internet gaming operators. The money spent on gambling should go into consumer spending and this would rekindle the flagging economy and he believes that it will generate more than $300 billion to create jobs and services.
Kindt also said that the government should repeal the more than $40 billion tax write-offs for slot machine owners. Furthermore, a ban would save billions in costs incurred due to gambling addictions, bankruptcies and crime. According to Prof Kindt, internet gaming and gambling on the whole has destabilised world economies and financial markets. No country can gamble their way to prosperity, gambling does not create products nor anything else of value, he further said.