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How Gambling Operators Affect the UK Economy

In recent years, the gambling industry has been developing very actively in the UK. It significantly affects the country’s economy and the mentality of people. We can safely say that online casinos have become an integral part of the UK population’s lives. To explain this statement in detail, let’s take a look at the statistics and the freshest data provided by reputable institutions.

Ernst & Young Research Results

Ernst & Young presented the results of a large-scale study ordered by the UK Betting and Gambling Council (BGC), which talks about the impact of gaming on the economy of the United Kingdom. According to the data provided, more than 119,000 people work in the UK gambling industry. Betting companies, land-based and virtual casinos have paid taxes to the accounts of the Treasury in the total amount of £4,500,000,000.

Now, in order to boost the popularity and accelerate the growth of online casinos in the UK, developers have started to include themed slots, progressive jackpots, and multiplayer casino games. The best review for the UK players on Bompers or alternative new slots can be found by the link.

Besides, the research itself provided other interesting facts:

  • In 2019, members of the BGC, which includes a range of bookmakers, casinos, and online companies, employed 61,000 people. Another 58,000 jobs were created in related fields, with which gambling is closely intertwined.
  • 19% of industry workers are under 25 years old. And more than half of the employed (51%) are under 35 years old. This figure is much lower than the average, which demonstrates how important gaming companies are in the context of launching young people’s careers.
  • In 2019, BGC members contributed £770,000,000 in gross value added. At the same time, the highest concentration of economic activity was recorded in London, Scotland, and in the northern part of the UK.
  • Clubs of the English Premier League receive at least £40 million annually from cooperation with bookmakers and other gaming companies.
  • Snooker and darts players earn more than £10 million from contracts with gambling operators.
  • The COVID-19 pandemic has hit the industry hard, with 374 betting shops and six casinos closed. About 5,000 people lost their jobs because of this.

According to experts, 30 million Britons gamble, and most of them do it safely. Another confirmation of this thesis is the number of gambling addicts: according to government data, only 0.5% of the total number of players have problems with gambling addiction, this figure has been stable for the last 20 years.

The contribution of bookmakers and gaming companies to the UK economy is truly enormous. Just having a casino in London brings in £120 million to the tourism sector. People are looking forward to the opening of land-based establishments. Gambling companies provide jobs for young people. And this is an extremely important factor, especially in this turbulent time.

The Online Gambling Development in the UK

It all started in 1994 when Microgaming launched the first online casino. Its attendance was quite low at that time because players were still adjusting to the virtual world. Later, Cryptologic also began to attract casino enthusiasts by offering them a special transaction system. At that time, many new features became available and players benefited greatly from this system.

The beginning of the 21st century marked the rapid spread of the Internet around the world. This transition to virtual reality became the key moment that British online casinos took advantage of. Once everyone realized how beneficial the Internet could be for businesses, there was a significant interest from investors in online casinos, which led to their rapid expansion in the 2000s.

In a competitive environment, many casinos began to offer huge bonuses to new customers. They have also started implementing loyalty programs for their existing clients. The software used to operate the online casino has also begun to be updated regularly to keep up with modern technology.

Impact of Online Gambling on the Economy

The Law on Gambling adopted in 2014 has significantly improved the gaming experience of both players and the general population of the country. One of the biggest changes that came under this law was the introduction of a 15% tax on all betting profits. In fact, this tax works in favour of the players because they are no longer required to pay tax on their winnings. At the same time, this tax ensures that the UK economy benefits from the strong growth of the industry and to some extent justifies its controversial nature. The introduction of the law also resulted in the overall positive public perception of gambling due to the amount of profit generated from taxation.

Moreover, the rapid growth in the number of online gambling platforms requires many employees. This attracts specialists to the sector and creates a huge number of vacancies. Thus, the population of the country becomes employed, and the unemployment rate decreases. So, online gambling helps to strengthen the economy of Britain and contributes to the financial prosperity of its inhabitants.