Online gaming has grown to a $180 billion industry and is set to reach $256 billion by 2025. Catering to more than 2.3 billion players around the world. It is also one of the fastest-growing industries in the world, with an annual growth rate of 7% and a forecasted growth rate of 9.2% by 2025.
The rise of the COVID-19 pandemic has resulted in people switching to online gaming, only adding to its significance. As a result, online gaming is now an essential part of the global economy. This industry has contributed to increased profits, higher tax revenues, and growth of the job market, thereby supporting local communities.
It also drives advanced technology development, as games are some of the most data-intensive applications today. The economic impact of online gaming in the US is expected to be huge, with many states already seeing its benefits.
Increased Economic Output
The online gaming industry has seen a massive revenue of US$155 billion in 2021; the online video gaming industry alone contributed around US$85.9 billion. The recent COVID-19 pandemic caused a major shift in consumer trends and has expanded the horizons for the online gaming industry.
Likewise, the online gambling and betting industry was worth around $62 billion in 2021. The development of online platforms offering a multitude of games such as roulette, blackjack, poker, and slots has garnered large audiences and has contributed to economic benefits.
Growth of Job Market
The online gaming industry has contributed to exponential growth in the job market, especially for game developers, coders, and animators, with some gaming companies having as much as a 20% increase in employment.
Other careers which have been boosted by the online gaming industry include audio engineers, game testers, and even professional gamers. The remunerations are also praise-worthy, ranging between $80,000-$120,000 per year due to the high demand for these positions.
Similarly, according to data gathered by the American Games Association, almost 1.8 million jobs are supported by casino gaming. This increasing rate of employment is certain to support the economy of the US, raise the living standards of the population, and even introduce new consumer trends.
Increased Tax Revenue
The video gaming industry contributes a hefty amount in tax revenue each year. The casino gaming industry contributes more than US$40 billion each year in tax revenue to federal and state institutions.
This increased revenue from online gaming has been instrumental in helping state governments balance their budgets while cutting taxes and maintaining public services such as education and healthcare.
The increase in tax revenue is primarily due to the increased demand of online games, resulting in higher audience and therefore, higher profits for the gaming companies. Another essential factor is the high tax rate imposed on online gaming.
While this high tax rate acts as a deterrent for the online gaming industry, nevertheless, it is here to stay. This emphasizes the need to regulate the online gaming industry in a way that it benefits the economy of the country as a whole.