Casinos, both physical and online, have a very significant impact on local economies.

Regardless of whether you’re a business owner, a policymaker, or just a citizen – the gambling industry and the laws surrounding it can have a major impact on local economies.

The business side of casinos in relation to the public is rarely talked about, so we’ll discuss it here.

We will focus on the financial outcomes in states where online gambling has been legal for a long time, and we’ll look at examples where casinos have been recently legalized to monitor their economic impact on the local economies.

Online Casinos and State Revenue: Real-Life Numbers

One of the most direct ways casinos influence local economies in regulated markets is through tax revenue. When countries or states legalize online gambling, they (usually) establish taxation systems that channel a portion of casino earnings into public funds. For example, whenever a player wins in a bet like red/black bets in roulette or any other casino game, they must pay tax on their winnings. Casino operators are also heavily taxed.

The idea is for the state to have a profit from the market as well. This revenue supports everything from education to infrastructure, as well as problem and addictive gambling help centres and institutions designed to help players.

Online gambling In Ireland, where online gambling has been embraced for several years, the sector also generates significant tax revenue. In 2021, gambling taxes amounted to €130 million. This funding supports public services and contributes to economic stability. As online gambling continues to grow, the government is exploring ways to optimize tax policies and maximize public benefit.

A good example to monitor the impact of online casinos on the local economy are the early adopter US states that were first to legalize online gambling in the country. New Jersey, one of the earliest adopters of online gambling in the US, shows how sustained growth in this sector can generate massive state income. In 2022 alone, the state collected over $1 billion in tax revenue from online casinos. This money funds public services, reduces budget deficits, and can even lower the tax burden on residents. Check out how other states where gambling was legalized performed:

State	Year Legalized Online Gambling	Revenue in 2022	Tax Revenue Collected
New Jersey	2013	$5.21 billion	$1.1 billion
Pennsylvania	2019	$1.2 billion	$514 million
Michigan	2021	$1.98 billion	$468 million

The pattern is clear: the earlier a state has legalized online casinos – the higher the tax revenue collected. According to state reports, a large portion of these funds in New Jersey goes to property tax relief, senior citizen programs, and public education. Pennsylvania directs its revenue toward local government budgets, economic development projects, and responsible gambling programs, while Michigan uses casino tax revenue to support its school aid fund and general city services in Detroit.

In Ireland, tax revenue funding from casino operators supports public services, healthcare, and regulatory oversight for responsible gambling initiatives. Additionally, Ireland benefits from licensing fees paid by foreign gambling operators. These licenses attract international businesses and contribute to the local economy through corporate taxes, job creation, and partnerships with Irish technology firms that support casino software and payment solutions, like Realex Payments, KamaGames, GAN and many others.

Job Creation and Employment Opportunities

Casinos also boost local economies by creating jobs. It’s not just about dealers or security guards in physical casinos – although they do contribute towards local economies – but online casinos employ a lot of personnel too. To run their online casino platforms, online casinos need tech professionals, customer service representatives, marketers, and more. Reports claim that in Michigan, the legalization of online gambling created over 3,000 direct jobs in its first year.

In Ireland, the online gambling sector employs thousands of people. Major online betting companies headquartered in Dublin, such as Flutter Entertainment, drive job growth in technology, customer support, and compliance. These positions offer competitive salaries and contribute to consumer spending in local markets.

Another example is Boyle Sports, one of the largest gambling operators in the country, which employs over 2,700 people across Ireland, the UK, and Malta.

Small Business Benefits

Casinos also help local economies indirectly. In areas with physical casinos, nearby businesses like restaurants, hotels, and entertainment venues see increased traffic. Las Vegas is a prime example of this factor.

For online casinos, though, it’s a bit different. Local small businesses don’t see as big of a benefit from these platforms, but local digital and field marketing agencies, payment processing companies, banks, and software developers benefit from the industry’s growth.

For example, marketing agencies have reported increased demand for their services from online gambling platforms. Payment service providers and the fintech sector also benefit from the growth of the iGaming sector. In Ireland, fintech firms like AIB Merchant Services have reported growing business opportunities linked to the online gambling market.