Gross Domestic Product (GDP)
Gross domestic product (GDP) is a measure of the market value of all goods and services produced within a region over a given time period. Although more often described in terms of its rate of growth, it is frequently used as an indicator of a country’s economic stability, and by extension, social welfare. As a result both national and international policy decisions are frequently made with the primary purpose of elevating GDP. The connection between the economic stability of a region, as described by its GDP, and the extent to which is describes social welfare is highly contested. The most common critique relates to the fact that many of the goods and services that contribute to GDP have a negative effect on social welfare. Polluting chemicals and processes, nuclear warheads, cigarette industry, the destruction of natural environments and many other goods and services, that clearly undermine prosperity, all contribute to the GDP metric. Despite these critiques there is clearly an intuitive relationship between the goods and services to which we assign value and to the goods and services we feel improve our lives.
GGR as a share of GDP
GGR from regulated operators in Greece were estimated to be approximately 2.2 billion euros in 2019, accounting for 1.16 percent of the country’s GDP. Similarly the GGR from regulated operators in Italy accounted for 1.06 percent its GDP. This statistic clearly illustrates that for many countries the gambling industry is responsible for a significant proportion of GDP. Although the social costs and benefits of gambling are not discussed here, this statistic provides a compelling incentive to investigate the effect of the gambling industry on social welfare.