Gambling Globalization and New Casinos in 2022

If we could point to one defining societal change that has shaped the 20th and 21st centuries, it would be the ongoing process of globalization. Starting with international trade agreements and political alliances, sped up by improvements in communications and transportation, and boosted by increased wealth in emerging economies, the world is now more connected and interdependent than it has ever been.

The internet is, of course, one of the biggest facilitators of this global society. In this article, GEP team will explore gambling globalization and its impact on the market in general, as well as the significance of online casinos.

Global Gambling: Old vs New

Ask anyone where the spiritual home of gambling lies, and the majority in the Western world would probably reply Las Vegas. But it seems that Nevada has lost its crown, at least when it comes to gambling revenue alone. For at least a decade, the title of the gambling capital of the world rightly belongs to Macau.

Formerly a Portuguese colony, Macau returned to Chinese rule in 1999 as part of Greater China, in a deal similar to the return of Hong Kong. The story of how Macau became a gambling powerhouse is intrinsically tied up with globalization, giving a clear example of how our interconnected world is shaping economies and changing our habits.

Gambling has always been an extremely popular pastime in Chinese culture, even though today it is only Macau that can legally run casinos. Prior to the 1999 handover, there was only one monopoly operator, and the majority of the sector was aimed at VIP rooms hosting high-rolling customers. The big change happened in 2001, when the casino market was opened to international companies, and the focus shifted away from exclusive players towards the mass market.

The impact on Macau was immense, with land reclamation projects put in place to increase the size of the tiny territory from 11.6km2 to almost 30km2, in order to accommodate the rapid casino expansion. Today, tax revenue from casinos accounts to around 80% of total government takings, and the local economy has been boosted by the influx of tourists attracted by the gaming tables.

Similar stories can be seen in other parts of Asia, notably Manila and Singapore. The growth of China’s middle class, along with increased international tourism, has seen a global shift towards the Asia Pacific region as the world’s preferred casino destination. It also doesn’t hurt that visitors are not required to part with any of their winnings in these jurisdictions; in the USA, casino visitors are expected to surrender up to 30% to the taxman.

New Casino Democracy: The Impact of the Internet till 2022

new casino sites benfit from the gaming globalizationThe biggest change in global gambling habits which lead to the creation of new casino sites 2022 has been an incredibly rewarding year for the industry so far – has come about by virtue of the number one influencer of the last thirty years – the Internet. No longer bound by physical space and international borders, new online casinos proliferated.

Some jurisdictions were quick to see the potential of the new market. In Europe, the small island nation of Malta positioned itself as the continental hub of online gambling, attracting companies to its shores with favourable business rates, and setting up the Malta Gaming Authority as an oversight body to issue licenses and regulate the industry. Nowadays, the MGA licenses is one of the most coveted by new casino operators worldwide.

Overseas, new online casinos have found fertile ground in both Canada and the U.S. Only partially regulated, North American markets represent a big opportunity for new casino – and gambling in general – operators. For players though, the risk of gambling their money at a rogue online casino is tangible.

These early adopters – often small island territories such as Gibraltar and the Isle of Man, which are keen to be involved in economically fruitful activities – are still the frontrunners in Europe. Players from almost every country on the continent, as well as many from further afield, hold accounts with online casino operators based in one of these jurisdictions.

There have been moves in recent years towards more internal regulation in individual countries within Europe, but the demand for cross-border gaming means that total devolution of regulation is unlikely to happen.

The growth of new online casinos has democratised gambling, as anyone with an internet-enabled device now has access to casino games. Competition is fierce in the sector, and as customer expectations rise, so casino providers are compelled to innovate in order to stand out from the competition.

European online casinos have also started making inroads into less regulated markets. In the past few years, many operators have focused on tailoring their services to Canadian customers, taking advantage of the hands-off approach favoured by the authorities in Canada. This has given Canadian players unprecedented access to play at licensed and regulated online casinos based offshore, providing an alternative to sites run by provincial government.

Less legitimately, even those who reside in countries where online gambling is banned may be able to circumvent the law by using IP-masking VPN software.

The Future of Global Gambling

No doubt there has been a seismic shift in gambling in recent years, with power moving from the traditional hubs in the USA towards Asia-Pacific. American brands are now scrambling to keep up with the gambling globalization, while also relaxing their own laws on sports betting in an effort to avoid losing customers to the international market. The rise of online casinos has also resulted in more people than ever engaging in gambling activities, and the global gambling market is projected to reach $565 billion within the next couple of years.

Many factors that are driving growth are expected to continue; increased freedom of international movement, internet access and mobile ownership, growth of emerging markets, and engagement of female players to name a few. Limiting factors are likely to be an increase in regulation. Governments are keen to cash in on the revenue potential of both online and offline gambling, as well as the potential job creation. The next few years will see a balancing act between legislation to protect players, and favourable conditions for the casino operators. Projections for 2020 look encouraging but let’s see if the trend will stay positive on the longer run.