Bad economic times are not just constrained to the United States. European country’s are also facing tough times and looking for ways to boost the bottom line. Some, like states are doing in the U.S. are looking at regulating online gambling as a way to so just that.
In a press release Spain announced a new law on online gambling:
VALETTA, Malta — (PRESS RELEASE) — Online gambling is growing rapidly in Spain. Therefore, the government is introducing a new law. This law will regulate the online gambling industry. With this online gambling law, the Spanish government will give a positive boost to the economy. Just for 2012, it will lead to an extra income of €137.5 million, a boost of 120.000 extra job opportunities and a reduction in gambling addiction.
Growing popularity of online gambling
In 2010 there were more than 370.000 online gamblers in Spain (AEDAPI). This represents an increase of 33% compared with 2009. Graphic 1 below illustrates the expected increase in Spanish online gambling players over the coming years. Because of this enormous growth in online gambling, the Spanish government wants to regulate the online gambling market.
€137.5 million extra income in 2012
The Spanish government will receive a boost in revenue by regulating the online gambling industry. Based on recent surveys and comparisons with other countries that already have a regulated online gambling industry, an estimation of the extra revenue for the Spanish government can be projected. Table 1 below illustrates that Spain will receive a minimum of € 137.5 million from taxes and licenses.
Estimated incomes 2012
Tax: €109.5 million
Licenses: €28 million
Total: €137.5 million
120.000 jobs created
For many years now, Spain has had a high unemployment rate. The implementation of the new gambling law can put an end to this by creating more jobs. Compared to the online gambling regulation in Ireland, where 12.000 new jobs are expected, an estimated 120.000 new jobs can be expected in Spain. This is derived from the proportional comparison of the populations of Ireland and Spain.
Reduction in gambling addiction
With the new gambling law, remote gaming providers are obligated to pay more attention to gambling addicts. Their website need to refer problem players to organizations specialized in problem gambling. When a person indicates that he/she has got a gambling problem, access to different gambling websites can be restricted. This cooperation will lead to less gambling addictions and improve current levels of assistance provided to problem gamblers.