Gambling achieves 50 billion Euro turnover in 2018
Published by Giselle
June 10, 2019 7:35 am
The Association of Gaming Equipment Manufacturers has published figures for 2018. The study focused on the importance of the gaming industry for the economy.
The bookmakers and casinos on the Internet alone each loosely occupy a three-digit number. However, offline gambling is also included in these statistics. Altogether the study comes so on a conversion at a value of 50 billion euro. On the one hand, this volume indicates the popularity of betting, slot machines, and table games. On the other hand, economic importance must be underlined.
For Germany, this study result could come at just the right time. The minister presidents of the federal states are currently discussing the form of the new State Treaty on Gaming. At present, there still seem to be some advocates of a conservative attitude. The opening of sports betting seems to have been decided. With other online games of chance, the final decision has by no means been made.
Gambling industry increases by 20 percentage points in 4 years!
Not every study is made available to the public. However, the Association of Gaming Equipment Manufacturers has decided to publish it. The importance of gambling for the economy is too important to use these results only for one’s own purposes. The fact that 50 billion euros could be generated as turnover in the past calendar year is definitely an announcement. Looking back at 2014, on the other hand, sales were still at 40 billion euros. This represents an increase of 20 percent. The industry association itself will be pleased about this trend. 23 nations are united in this association. 175 members are registered.
But the economic benefit is not only to be defined in the business figures concerning the turnover. This can also be broken down to individuals. Because where such a sum is converted, many persons must work in the background. In other words, gambling creates jobs. Figures have also been published on this subject. Almost 62,000 people work directly for a gambling provider. If the number of employees involved is expanded to include indirect employees (suppliers, partners, etc.), we already have a total of 220,000 people. Each of these jobs can contribute to the nutrition of a family. Politicians should not ignore this fact before they create bans or barriers.
The gambling market is growing both online and offline: It is not only Internet gambling that has led to growth. As the study shows, sales in land-based establishments have risen by six percentage points.
The growth of companies in the gambling market is as follows
Numbers speak louder than words. We have discussed the growth from 40 billion euros (2014) to 50 billion euros (2018) in sales. But the number of employees has also risen. Within five years, the number of jobs created has risen from 51,000 to just under 62,000. The growth rate is specifically estimated at 22 percent. And the success in the gambling sector is by no means due to the fact that the workers are being exploited. A total of 12.5 billion euros in salary could be paid out in 2018. On average, one employee was paid 80,000 euros a year. It should be noted, however, that the strong people at the top are driving this figure up. Nevertheless, the average salary surpasses many other industries. We have already reported on job security in online gambling.
Has the tip of the iceberg now been reached? That is not likely. On the contrary. Because 92 percent of the companies stated that they expect increased demand in 2019. As a result, almost 50 percent of the companies will bring new employees on board. New technologies will be the focus of attention in the coming years. And not only the established gambling providers were able to look back on success. There have also been a number of new companies. By the way, the hiring of new employees is only a remarkable statement. Furthermore, the companies do not plan to lay off employees in 2019. The industry association and the companies represented can all be satisfied with these figures.
A damper for Germany? Politicians in the Federal Republic of Germany are still discussing the legal prohibition of various games of chance. In particular on-line Casinos and Poker stand here in the focus.
Economy vs. player protection: Can’t you do both?
Marcus Prater summarizes the development in its role as managing director of the industry federation: “The study shows that this dynamic sector completely on the advancement of the industry and the further development of the industry. In summary, the report paints a picture of a healthy gambling industry in which providers rely on modern technologies and games provided by a large number of innovative suppliers”.
Politically, the opinion prevails that gambling is played on the backs of the players. Of course, there is no denying that gambling addiction is a problem. But in the past, bans have often had no effect. This drives the game into illegality, where there is no regulation. And this is exactly where Germany should start. Games of chance must be regulated. The planning of a gambling authority, which is expected to be established in 2021, is the first step in this direction. If the right measures are taken to protect the players, continued positive development in economic terms and responsibility towards the citizens of the Federal Republic should not get in the way.