The Dilemma of Governments on Online Gambling

Technology has advanced rapidly and the convenience of mobile phones has changed people's lifestyle. In particular, the recent pandemic has closed cities in various countries and stimulated online consumption. Traditional gambling games have naturally shifted from offline to online and become part of online entertainment ecosystem. 

Many governments are facing huge tax losses due to online gambling and is formulating measures to deal with it, such as establishing institutional controls and requiring gambling websites to register with the authorities and levy taxes. 

Surprisingly, there are many countries have legalized online gambling, including: the United Kingdom, Ireland, Italy, Denmark, Switzerland, Spain, Germany, Greece, Australia, Belgium, the Czech Republic, Cyprus, Colombia, and Canada. Europe has become the world's largest online gambling market, with total online gambling revenue reaching US$29.3 billion 10 years ago. For many countries, the annual tax revenue of hundreds of millions is one of the main considerations. 

In addition, legalizing online gambling will effectively prevent more illegal online gambling, save the manpower and material resources required for law enforcement, and protect the interests of citizens in the long run. Large-scale entertainment and online casinos will be part of people’s lives, driving economic development and creating a large number of employment opportunities once the authorities have legalized the industry. 

In recent years, online gambling has gradually subverted traditional gambling games due to the convenience of mobile phones, forming a new trend. However, due to the lack of a legal and effective management mechanism, negative news about gamblers winning money and being blacked out and unable to get the money is occasionally reported. After legalization, gamblers will also be protected to a certain extent, because of the formulation and competition of the mechanism. It will make online casinos more transparent. If there are negative news, it will naturally become the result of the self-destruction of the reputation of the gaming company. 

For gamblers, the advantages of legalized online gambling include: convenience and time saving, you can start the game at any time. It is not restricted by time and place. Moreover, cash payment and withdrawal are more convenient and faster. 

History confirms that casinos are the centreforce of the rapid development of tourism and real estate, and these three industrial chains are inseparable. When a country cannot stop the trend of the times, if it can take advantage of the trend, it can get countless benefits from it, otherwise the governments will lose out on the tax revenue.