Social responsibility of the gambling industry: contribution to the economy, charity and infrastructure development

Published in cooperation between YoYo Limited and The Pajaronian

In the last few years, online gambling has grown so much and become so popular among people that it is a part of other social events as well as their sponsor in some cases. The experience of many countries has shown that it is more reasonable to regulate the gambling market competently than to strictly prohibit it. Legalization and creation of a civilized gambling environment with competent regulation is not only an additional source of budget revenues, but also an effective social policy to protect players and create jobs.

Sectors of the economy that are stimulated by online gambling organizers

In the process of formation, any sector of the economy conducts active commercial activity. In addition to direct license fees, with which legal gambling organizers fill the state budget, online gambling organizers also generate profits in other sectors of the economy, buying goods, online slots and services; renting premises; and other means of production. 

Consulting

Government regulation of gambling is quite strict regardless of the country, so it is typically not easy to go through the process of obtaining licenses and launching a business. Lawyers and business consultants are required, especially when foreign companies without experience in local jurisdictions are seek a license. 

Recruitment and training of personnel

The gambling market is quite demanding, so the search for and training of personnel requires considerable time and resources. Legal organizers actively invest in HR and recruitment, which not only contributes to the increase in the number of official jobs, but also provides an opportunity to earn money for companies specializing in the search and hiring of personnel.

IT investments 

The main products for gambling sites are their online platforms and gaming applications. Developing them, improving them and keeping them running requires constant investment. Some companies rely on in-house IT departments, while others outsource developers. However, in both cases, they invest tens of millions of dollars in IT.

Marketing and Sponsorship

Legal gambling, which provides entertainment, is designed to elicit positive emotions. Therefore, one of the most effective tools to convey its mission and attract customers for legal organizers is advertising. Various communication channels are used, including social networks, podcasts, blogs, television and the Internet. 

Also, online casinos or betting establishments have increasingly become sponsors of sports competitions and teams in various sports. They sign multi-million dollar contracts with soccer clubs, basketball leagues and cyber sports tournaments, placing their advertisements on players’ uniforms and stadiums. Such cooperation not only increases the popularity of brands, but also contributes to the development of sports by funding training, infrastructure and youth academies.

Activities and Charity Events

Online casinos are actively involved in social initiatives by organizing various charity events. They often hold fundraising events for the needy, donating part of their profits to support foundations. Сompanies organize special tournaments, where part of the winnings is automatically transferred to charitable organizations. Many platforms launch programs to combat ludomania and even free consultations with psychologists. Some casinos hold charity lotteries, and all proceeds go to help orphans or people with disabilities. Initiatives to support local communities, such as funding cultural events and urban infrastructure development, are also popular.

MGM Resorts International donated $301,616.12 to community organizations in 2024 in the United States. In Canada, online club Gateway Casinos organized a charity poker tournament in 2024, raising almost $5 000 for charity. 

Taxes

Taxes are one of the main reasons why some world countries have legalized gambling. It is better for establishments to contribute money to the treasury in regulated activities than to operate illegally or in underground places. Companies pay for licenses to conduct gambling activities, which already brings revenue to the state budget. In addition, they pay taxes on profits, which go to fund social programs, health care and education. 

Many countries with regulated gambling markets have special taxes on stakes and winnings that provide an additional source of revenue for the state. Government uses part of the income for the development of infrastructure, construction of roads, schools and hospitals. In the United States, gambling revenue in 2024 amounted to $72 billion.