Many European governments are reluctant to allow online betting in an attempt to protect their national gambling businesses. A recent study found that seven countries out of the 27 in the European Union banned online gambling. Of the other 20 only 13 have opened their markets to competition; in the rest gambling is dominated by monopolies owned or licensed by the government. In the Netherlands, for example, residents can only place online bets with a state monopoly: De Lotto. The Ministry of Justice even warned banks in the country that they could be prosecuted if they transferred money to online gambling companies. Other countries have ordered online betting companies to block access to their sites. Their governments argue that this is to protect people from gambling excessively. However the revenue they gain from their own monopolies should not be ignored as a possible motive.Questions If governments believe that gambling is bad for their citizens then in economic terms how would you classify this service?Why might governments want to protect their own monopolies in the gambling sector?What might be the effect of greater competition in the gambling industry in these countries? Many European governments are reluctant to allow online betting in an attempt to protect their national gamblingPage 1businesses. A recent study found that seven countries out of the 27 in the European Union banned online gambling. Ofthe other 20 only 13 have opened their markets to competition; in the rest gambling is dominated by monopoliesowned or licensed by the government. In the Netherlands, for example, residents can only place online bets with astate monopoly: De Lotto. The Ministry of Justice even warned banks in the country that they could be prosecuted ifthey transferred money to online gambling companies. Other countries have ordered online betting companies toblock access to their sites. Their governments argue that this is to protect people from gambling excessively. Howeverthe revenue they gain from their own monopolies should not be ignored as a possible motive.Questions1. If governments believe that gambling is bad for their citizens then in economic terms how would you classify thisservice?2. Why might governments want to protect their own monopolies in the gambling sector?3. What might be the effect of greater competition in the gambling industry in these countries?

Meaning of Perfect Competition: The term perfect competition refers to the situation under which…

Answered: Many European governments are reluctant…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Many European governments are reluctant to allow online betting in an attempt to protect their national gambling businesses. A recent study found that seven countries out of the 27 in the European Union banned online gambling. Of the other 20 only 13 have opened their markets to competition; in the rest gambling is dominated by monopolies owned or licensed by the government. In the Netherlands, for example, residents can only place online bets with a state monopoly: De Lotto. The Ministry of Justice even warned banks in the country that they could be prosecuted if they transferred money to online gambling companies. Other countries have ordered online betting companies to block access to their sites. Their governments argue that this is to protect people from gambling excessively. However the revenue they gain from their own monopolies should not be ignored as a possible motive.

Questions

If governments believe that gambling is bad for their citizens then in economic terms how would you classify this service?
Why might governments want to protect their own monopolies in the gambling sector?
What might be the effect of greater competition in the gambling industry in these countries?

Many European governments are reluctant to allow online betting in an attempt to protect their national gambling
Page 1
businesses. A recent study found that seven countries out of the 27 in the European Union banned online gambling. Of
the other 20 only 13 have opened their markets to competition; in the rest gambling is dominated by monopolies
owned or licensed by the government. In the Netherlands, for example, residents can only place online bets with a
state monopoly: De Lotto. The Ministry of Justice even warned banks in the country that they could be prosecuted if
they transferred money to online gambling companies. Other countries have ordered online betting companies to
block access to their sites. Their governments argue that this is to protect people from gambling excessively. However
the revenue they gain from their own monopolies should not be ignored as a possible motive.
Questions
1. If governments believe that gambling is bad for their citizens then in economic terms how would you classify this
service?
2. Why might governments want to protect their own monopolies in the gambling sector?
3. What might be the effect of greater competition in the gambling industry in these countries?

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