The report analyzes the contribution of the British Gambling Commission (BGC) to the British economy by examining gambling data from July 2021 to June 2022.
Key findings from the report include:
- Online gaming has seen a 19% increase compared to pre-Covid levels.
- Online betting revenue has remained relatively stable, with a 1% rise to £34m compared to pre-pandemic revenue.
- The online sector has experienced a significant decline over the past year, with a 19% year-on-year decline in combined betting and gaming revenue during the first half of the year.
- Overall, revenue for 2021-22 was down by 15% compared to the previous year.
The report suggests that these declines can be attributed to a shift back to land-based betting and gaming, the implementation of affordability checks, and the squeeze on household incomes caused by inflation.
There are concerns that these factors may drive some customers to the black market, where operators offer remote gambling products without a UK Gambling Commission license.
The CEO of the BGC, Michael Dugher, highlights the importance of receiving clarity on affordability checks through the anticipated 2005 Gambling Act Review. Without this clarity, operators and players may be pushed towards the unsafe, unregulated black market.
In addition to these challenges, operators have also faced increased energy costs, with a reported 70% increase in 2021-22 compared to previous quarters.
The report reveals that the regulated gambling industry contributed £7.1bn to the UK economy between 2021 and 2022. This is slightly less than the £7.9bn contributed in 2019.
This contribution is made up of £2.3bn in direct gross value added (GVA), £2.7bn in indirect GVA generated by the BGC’s supply chain, and £2.1bn in induced effects generated by people employed by BGC members or their supply chains.
The gambling industry’s tax contribution accounted for 0.37% of the total tax receipts in 2021-22, exceeding its share of the overall economy.
Members of the betting and gaming sector contributed around £2.0bn in excise duties and an additional £1.0bn through income tax, National Insurance contributions, and corporation tax payments.
Michael Dugher emphasizes the importance of the gambling industry to the UK economy, calling for clarity from the Gambling Act Review to ensure its continued contribution and success.
