The U.K. Betting and Gaming Council (BGC) warns that exponentially rising energy prices could have a catastrophic effect on the leisure and hospitality sector overall, but particularly retail bookmakers and casinos, who have seen energy bills increase by 300 percent.
It referenced an annual report from the casino operators Rank Group, which called power costs a major drag this year and one of the main weights on recovering from the effects of the pandemic. Energy costs increased from £13 million in 2021 to £23 million this year.
BGC CEO Michael Dugher said in the report: “Casinos are a vital pillar of the hospitality and tourism sector in cities and towns across the UK. Just like the rest of the hospitality sector they are struggling to build back after the global pandemic and now they face a new crisis.”
The U.K. betting sector faces other threats too, from a rehaul of the Gambling Act that is anticipated after a White Paper is published later this year. The White Paper was delayed by the resignation of Prime Minister Boris Johnson earlier this summer.
The U.K. has 6,500 betting shops and 121 casinos, with 44,000 employees, an industry that generates £2 billion in taxes per week and £4 billion annually. The fact that more than 200 licensed betting operators have closed in the last five years makes things even more troubling.
Dugher added, “Meanwhile bookmakers, which play a critical role on the UK’s hard-pressed high streets, face similar challenges. In short, any business which welcomes customers into a building must grapple with this energy emergency.”
