By: Mila Roy
Mila is a talented writer and works as a content strategist at Gamblizard. She enjoys eSports events and iGaming entertainment. Some of her favorite pastime activities are playing Hearthstone, poker, Fortnite, and table football.
Online gambling is popular all over the world, but it’s also a really controversial topic. Although, it is legal and has a massive userbase in the UK, there are a lot of countries where gambling is prohibited. Nowadays, those restrictions are becoming laxer, and the iGaming industry is slowly but surely growing in the US as well. Another important thing to note is that sports betting is usually regarded as gambling, which is not the case in the US, where sports betting is mostly legal. This is why when we discuss gambling it only pertains to casino games, not on placing wagers on sports matches.
Here we will go over some recent legislative developments in Florida, a state that is reevaluating its position on online gambling laws. We will discuss some pros and cons if those restrictions are lifted and gambling becomes legal.
One thing that any online gambling parlor needs to ensure is the enforcement of responsible gambling. This is because the activity is prone to lead users into irresponsible spending behavior. It is also one of the main reasons why states decide to ban gambling in the first place. Nowadays, technology has advanced to the point where it’s easier to monitor user behavior and regulated online platforms.
Even with the new approach, there is still a ton of controversy when it comes to the legalization of gambling and online gambling. The main problem here is allowing it online because everyone is skeptical about the possibility to monitor users and run the business in accordance with regulations. So, when someone starts discussing the legalization of online sports betting, it always raises some eyebrows. However, online banking or payments went through similar challenges, and there are enough regulations and restrictions in place to ensure that those institutions that offer online payments stay compliant.
A Lot of Revenue Comes via Small Payments
Most of the businesses that offer online entertainment are monetized via so-called microtransactions. In other words, they are interested in the quantity of the payments rather than volumes. Of course, there are always whale customers and those businesses try their best to cater to that user group, but the majority of revenue in most cases at least is a result of a massive user base.
Nowadays, online sports betting and online casinos are trying to attract a massive user base by relying on generous incentives. This is why we see $10 deposit casinos, which basically allow users like college grad students to play for hours with only a minor deposit. Given how there are more providers, users tend to play slots or other games across the different online casino platforms to fully utilize these bonuses, and not spend too much cash at the same time. This is quite common among Canadian players, and UK players because different online gambling parlors are available in those countries.
More Revenue for The State of Florida
One of the main advantages of legalizing online gambling and sports betting is tax money from those lucrative businesses. Think of it as whale customers for the state. In theory, if this business is legalized Florida might be able to generate over $2 billion over several years. On top of that, there will be hundreds of new job opportunities for their citizens, which is always a good thing from an economic perspective.
However, the reality is a bit different and the guaranteed amount is $500 million. This is still good, but it’s significantly less than $2 billion. As a result, the state faced a backlash from many vocal critics.
Sports betting and gambling tend to have an aggressive advertising campaign, and so far governments have failed to protect the younger audiences from being influenced by these commercials or ads. However, with the right disclaimers and registration requirements for placing bets, this too can easily be regulated, so long as everyone cooperates.
The truth is that users tend to find alternatives when they want to get access to the content that is restricted in their region. In other words, the money that could be beneficial for the state goes elsewhere. However, you can’t simply overlook the dissatisfaction of citizens regarding certain legislations, so it’s a process where governments need to carefully mitigate between these two sides. It’s worth mentioning that as a society we have a lot of negative biases, and are more prone to critique something that might not be as bad as we make it out to be.