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Who benefits the most from online gambling?
It�s not a secret that online gambling, and gambling in general, is a lucrative business. There are several entities involved in the gambling chain which earn a hefty paycheck at the end of each year.
The three most important ones that we want to focus on in this article are the government, the online casinos, and the players who place bets.
Even the US has recognised the financial benefits of legalised betting, as they overturned PASPA (Professional and Amateur Sports Protection Act) and decided to legalise sports betting in May 2018.
How Much Does the UK Government Make from Online Gambling?
Governments in the world that have legalised gambling make billions of dollars every year from taxes on both online and offline gambling. Some governments tax only online casinos, while others are more greedy and tax the players as well.
The online casino gambling industry in the UK has reached its peak. Players spend a lot of time and money on playing online games, such as this UK online casino roulette. Therefore, the fact that the UK government earned more than �2.7 billion ($3.4 billion) in 2017 does not come as a surprise at all.
The UK government is able to earn that much money by taxing domestic online casinos 15% on all of their profits. That might sound like a lot until you consider that the income tax in the UK is 20%. Offshore online casinos are taxed the same way, which funnels even more money into the budget, as their number is much higher.
One way in which the government in the UK is not making money from online gambling is from players� profits. You get to keep every single penny that you earn playing roulette, slots, or any other game. The situation is not the same in the USA. For example, in Vegas, foreign punters will have to pay 30% of their wins in taxes, while domestic punters need to pay 25% of any win higher than $5,000.
How Profitable Is Online Gambling for Casinos?
The government has nearly no expenses when it comes to online casinos. They issue licences and collect taxes � that�s about it. On the other hand, it�s a whole different story for an online casino. There are more expenses involved, so casino owners need to work hard to stay above the water. Nonetheless, it is estimated that an average online casino makes roughly more than half a million dollars each month.
There are several main �leaks� in the online casino industry. As we mentioned, they need to give 15% of their profits back to the government in the UK. Next, they need to pay software providers a fee for their games. Finally, their affiliate marketers have to receive a piece of the cake as well. After that, the casinos can keep anything that is left.
The main way online casinos profit is from the return to player (RTP). You can see this number in many casino games, such as the online slot machines on Prime Slots. The average RTP on slot games is 96%, which means that online casinos earn 4%. Therefore, the average casino will earn 4$ on every $100 a player bets.
Is There Anything Left for Players to Earn?
By the time we reach the players and their profits, you might be asking if there is anything left for them to earn. Even though the government and the online casinos have to collect their parts, we need to remember that online gambling is still a billion dollar industry.
Casino games are games both of luck and of skill. Therefore, it�s difficult to come up with an exact number and say how much online casino players make. However, there are some ways in which players can maximise their chances of winning and walk away with a profit.
For example, they can play table games against less experienced players. They should find out which tables are regularly frequented by beginners and try to make their luck there. Playing slot games is also a great way to earn well. If you�re lucky enough, you can hit the jackpot within several spins and walk away with a massive profit. Bonus offers also provide players with a nice potential profit if the Terms and Conditions are properly followed.
Thus, we may conclude that in a massively profitable industry such as online gambling, everyone can make a profit in the end if they make enough smart moves.
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