The gaming industry in the U.K. is putting its best foot forward ahead of a major overhaul of the 2005 Gambling Act.
According to a report commissioned by the U.K. Betting and Gaming Council (BGC), betting shops, casinos and the online gaming sector contributed £7.7 billion (US$10.6 billion) in gross revenue to the economy in 2019, a year before the Covid-19 pandemic. That includes £2.6 billion in direct revenue, £2.9 billion of indirect revenue and £2.2 billion reinvested in the economy by employees.
The report, released on March 29, says the industry employs 119,000 people directly and indirectly and sends £4.5 billion in taxes to the government. Gaming industry suppliers paid £700 million in duties, while taxes from businesses supported by industry spending came to £600 million.
The report said online revenue could rise by 7 percent in 2020 to £5.9 billion. Retail betting revenue could decline 45 percent to £1.6 billion, while casino revenue may decrease as much as 70 percent to £300 million.
Employment will fall to 56,000, although the furlough scheme will help out. BGC Chairwoman Brigid Simmonds said, “Casinos in London alone contribute £120 million to the tourism sector, and look forward to being open once again.”
The country expects to complete a white-paper recommendation for regulations by the end of the year. New regulations expect to take into account the rise in digital gaming and its impact on problem gambling, according to City A.M.
Look for laws to deal with online stake limits, controls on gambling advertising and age limits, along with a review of the powers accorded to the U.K. Gambling Commission.
While the council supports a review, it cautions against steps that would jeopardize jobs and taxes. The report revealed that lockdown resulted in the permanent closing of 374 shops and two casinos, with the loss of 5,000 positions.
“At a time of economic fears and huge pressures on public finances caused by the Covid-19 pandemic, the huge contribution betting and gaming makes to the U.K. could not be more important,” said Council chief executive Michael Dugher.
The hope is by 2023, overall gross gambling yield will be £11.1 billion compared to £9.5 billion in 2019. Employment will exceed 2019 levels as well.
