Contrary to popular belief, online casinos have a positive impact on land-based casinos. Last year, the folks at Eilers & Krejcik Gaming commissioned a study to find out the impact of iGaming on brick-and-mortar casinos.

The report showed that American casinos in states where online gaming is legal had all increased their revenues. Gamblers who experience poker and slots online for the first time also make an effort to play these games in a real casino.

In this article, we’ll look at the online casinos impact on Indian economy. Which sector generates more revenue for the government? Which casinos employ more people? Let’s find out.

Casino Regulation in India

Until last year, only Goa, Sikkim, and Nagaland states had laws supporting online gambling. The rest of the country either ignored iGaming or banned the industry. If you wanted to play casino games, you had to live in a state where they’re legal. Alternatively, you could use offshore casinos.

Things are about to change if the government keeps its promise to create an online gaming regulatory body this year. Once iGaming becomes legal at a federal level, every adult in the country will have access to hundreds of safe and reliable online casinos.

More land-based casinos will also pop up, allowing gamblers to decide how they want to experience casino games. For the majority of people, online gambling offers more convenience.

However, that doesn’t mean brick-and-mortar casinos are outdated. They offer outstanding experiences and have a major economic impact on the country.

Economic Benefits of Land-based Casinos

Depending on who you ask, land-based casinos are better for the growth of the Indian economy. Here are some of the reasons:

Tens of Thousands of Jobs

The average land-based casino has 500 employees. In Las Vegas, large casinos hire up to 3000 permanent workers. In total, land-based casinos in the US employ more than 400,000 people.

Compared to online casinos, land-based operators employ up to 10 times more people. The explanation is straightforward. Brick-and-mortar casinos have many moving parts.

They need security guards to watch the gates, protect revelers, and watch out for fraudulent activities. They also need digital security experts. In the hotel section, casinos may employ up to 100 chefs, waiters, cleaners, managers, and accountants.

Then there are workers assigned to gaming floor activities. Think about dealers, pit managers, croupiers, servers, and waiters. Beyond gambling, some casinos pay people to provide entertainment and recreational services.


In other words, Indian states that want to increase job opportunities should invite investors to launch land-based casinos.

Billions of Dollars in Revenues

Brick-and-mortar casinos generate billions of dollars in annual revenues. It is easy to see why. These businesses provide a wide variety of high-quality entertainment services to thousands of people.

New Jersey’s casinos paint a clear picture of the amount of revenue land-based casinos can produce annually. Last year, land-based casinos contributed 56% of the $5.7 billion revenue generated.

The nine casinos in Garden State all made more than $150 million in gross earnings, with one casino making over $1.3 billion (Borgata casinos). Against that backdrop, land-based casinos in India will have a similar impact.

Although many young people prefer to gamble at online casinos, the highest-earning gamblers spend their money at land-based casinos.

Hundreds of Crores in Tax Revenue

Land-based casinos in Goa and Sikkim pay more than 1000 crores in tax revenues. Last year, Goa collected Rs. 820 crore from its land-based casinos. Both Sikkim and Nagaland made hundreds of crores by taxing casinos.

Around the world, land-based casinos pay hundreds of millions of dollars in taxes to local governments. If the Indian government is serious about maximizing revenues from the gambling industry, it has to permit land-based casinos.

Supporting Local Communities

Another economic benefit of land-based casinos is that they can boost local businesses. Las Vegas is an excellent example. The city was a small town before the first casino opened.

Now, it is one of the world’s entertainment capitals. It is packed with high-value businesses, expensive properties, and lots of amazing places. You don’t have to start a casino to succeed in Las Vegas. Yet, casinos are the main attraction for people traveling to the city.

Economic Impact of Online Casinos

India has plans to legalize both online and land-based casinos. Here’s an overview of how iGaming could improve the economy:

Job Creation

We’ll be honest. Online casinos employ a fraction of the people who work at brick-and-mortar casinos. They don’t need many employees, anyway. They can operate with a small team of web developers, marketers, accountants, managers, and digital security experts. They might also need customer service staff and live casino employees.

However, online casinos don’t need hotel workers, security guards, live performers, and support staff. Despite that, iGaming can help create opportunities for India

Higher Revenues

Lately, online gambling has had a higher demand than land-based casinos. In New Jersey, only three out of nine land-based casinos make higher profits now than they did before COVID-19.

The explanation is that the bulk of young gamblers prefer to gamble online. For India to maximize revenues from iGaming, it needs to promote online gambling businesses. They regularly contribute up to 50% of revenues in Goa and Sikkim.

They generate even more money from licensing fees. Goa made Rs 466 crore from online casinos in the last year. And not every offshore casino paid the fees. Some overseas-based casinos have been avoiding paying the money.

Tax for the Government

Countries that generate high-income taxes from online casinos have licensed dozens of websites. The government could impose a low tax rate and licenses hundreds of websites. In doing so, it can collect billions of rupees annually. This money could fund education, healthcare, and other important sectors.

In Conclusion

Both land-based and online casinos are good for the Indian economy. Brick-and-mortar casinos collect higher revenues and employ more people. However, online casinos are growing rapidly, meaning they hold great potential in revenue generation.

Considering online casinos help create demand for land-based casinos; the government should license both industries.