Legalization Of Gambling And Other Favorable Government Policies Support The Demand For Gambling Activities
The global gambling market is expected to grow from $476 billion in 2019 to around $565 billion in 2022 at a compound annual growth rate (CAGR) of 5.9%. The gambling market is expected to be driven by the legalization of gambling activities in both developed and developing countries. In 2018, the Supreme Court of the USA legalized sports betting in the country. Following this rule, several states have legalized sports betting, and others are considering legalizing it. The Law Commission of India has urged the government of India to legalize sports betting in the country. The legalization of gambling activities such as sports betting will push the demand for gambling, thus driving the market.
During the historic period, governments in both developed and developing countries were focusing on promoting the tourism market by making favorable policies. Governments have modified immigration laws and introduced facilities such as visa on arrival (VOA) and tax-free shopping to attract tourists. For instance, countries such as Thailand, Maldives, Indonesia, Qatar, and Jordan have started accepting VOA, which saves time and money for the tourists, while providing a simple, convenient and hassle-free visa process. Macau exempts a visa to the nationals of 66 countries, and provides a visa on arrival to the other nationals. Apart from this, geographies such as the European Union, the UAE, Australia and Mexico provide a reimbursement of the value added tax (VAT) for the tourists on their purchased items. These factors influenced the tourism industry, thus driving the flow of tourists- especially high net worth individuals- which contributed to the growth of the global gambling market in the respective countries.
Gambling in its entirety, or partly, is illegal in many countries globally. A sizable market for illegal gambling exists alongside the legal gambling market. Gambling is prohibited by law in some countries due to the perceived social and economic impacts. For instance, Saudi Arabia bans all forms of gambling activities, and China bans all forms of gambling except lotteries. In countries such as Canada, India, and the USA, the legal status of gambling activities varies by province. For instance, in India, land-based lotteries are legal in only 13 states. In the USA, land-based casino gambling is legal in 18 states. The size of the illegal sports betting industry in the USA is estimated at about $67 billion a year. In Germany, online gambling is prohibited by law. Prohibition on the various forms of gambling in a geography will have a negative impact on the gambling market in that geography.