Online Gambling companies see Q1 Revenues while Costa Rica Looks to Tax Revenues
Laura Chinchilla, the first female president of Costa Rica, is looking to try to increase revenue for the country but imposing taxes on the nations online gambling businesses that function. Many businesses for North America who focus on both sports betting and poker are originally in Costa Rica. Some people consider it to be the Switzerland of Central America because of this fact. The reason for needing to increase taxes is because Costa Rica has a lot of crime. Chinchilla seeks to reduce this by increasing both education and the police force as well.
These public services cannot get increased and expanded without additional tax revenue. It has to be generated somewhere so it seems that taxing the gambling industry will allow extra funds to appear. The anticipations for revenue from this industry is equal to 1% of the gross domestic product. The history of online gambling from businesses that operate in Costa Rica dates back nearly 15 years. The majority of these were established in 1996 or around the same time period. Taxing the industry had been proposed many times before but was never successfully implemented. Online gambling companies are very opposed to taxing the winnings because they feel it will cause individuals to use their services a lot less often.
Gambling has been increased online during the first quarter of 2010. This increase has been jumped over a quarter by 27% to equal $127.1 million for the company PartyGaming. These increases were seen in a variety of different gaming platforms such as sports betting, bingo, and casino games as well. The company of PartyGaming intends to expand to France as well in the coming months or years and currently includes PartyCasino and PartyPoker as well. PartyGaming does intend to eventually come to the United States if online gambling does get legalized in the country. Many politicians are trying to get the legalization to occur but nothing has officially been passed into law yet. These intentions were passed directly on to Reuters themselves.
PartyGaming does try to get new clients on a constant basis along with keeping revenue amounts high to keep the company afloat and continuing to thrive. The players are the heart of the operation and continue to keep revenue flowing into the business. Growth during the most recent quarter happened by adding over 245,000 new players into the gaming world. The total sign ups in 2009 ended up totaling 199,200 which was an increase of 15% from the previous quarter and 23% over the year prior. As a result of these numbers being increased the daily player rate has been increased. 7% of the players became daily players after their signups happened. This rate was an increase over the previous quarter. Online gambling looks like it can be promising to allow a revenue increase to happen due to taxing winnings. This works for people who live where gambling is currently legal and where it has the potential to be legalized in the future as well. These people follow by examples.