DEVELOPMENT OF ONLINE GAMBLING IN THE GAMBLING BUSINESS SYSTEM

Abstract

The proposed study is devoted to the theoretical analysis of the development of online gambling in the gaming business system. In order to better understanding the concept of online gambling, we suggest that it is not monolithic, but is consisting of segments: casinos (commercial and tribal), state lotteries, betting on pairs, sports betting, charitable gambling, gambling on the Internet, standalone electronic gaming devices (such as video poker and video keno), and so on. Each group has its own distinct set of concerns, communities of interest, and balances of assets and liabilities. As it was noted in a report by the National Commission on the Impact of Gambling, technology in this area is developing at a rapid pace, and its potential is only beginning to be seen. The state of development of online gambling is analyzed in countries where it is legalized. And such countries that have legalized online games can be tentatively classified into three groups: 1) countries that offer operators inexpensive licensing with low tax rates and little or no control by regulators; 2) countries from the European jurisdiction, which also regulate online games for economic development, but have more rules compared to the first group; 3) developed countries with complex regulatory policies. Countries falling into the third group face the challenge of having their markets taken over by websites originating from the jurisdictions of the first two groups. Liberalization of slot machines and online gambling has a positive effect on, this growth index will be greater in those countries where gambling is oriented to local consumers. COVID-19 led to lower market revenues in the gambling sector in Europe in 2020 and 2021 compared to previous years and accelerated the previously existing trend of increasing the percentage of online gaming. Although there are significant differences in the share of online gambling in different national gambling markets, it is worth noting that with the increase in the share of online gambling, the amount of income to the budgets of countries also increases.