The gambling sector in the UK provides significant contributions to the economy, employing a total of 61,000 individuals directly and indirectly supporting an additional 58,000 jobs. However, due to the impact of the Covid-19 pandemic, both the financial and employment contributions of the sector are expected to decline in 2020.
In 2019, the industry added £7.7 billion to Britain’s gross domestic product (GDP), known as its gross value added (GVA). This amount can be further broken down into £2.6 billion from the operations of BGC (Betting and Gaming Council) members, £2.9 billion indirectly through the supply chain, and £2.2 billion from spending by those employed by BGC members.
The retail betting shops made the largest direct contribution to GVA, at £1.1 billion, while the remote sector had the largest overall GVA at £3.8 billion. It is crucial to note the significance of the sector’s contribution to the economy, particularly during these challenging times of economic fears and pressures caused by the pandemic.
In terms of employment, BGC members employed 61,000 staff directly in 2019, with a higher concentration of jobs in the North of England. Additionally, these members tend to have a younger workforce compared to most industries. Furthermore, the report estimated that BGC members created an additional 44,000 indirect supply chain jobs and supported 14,000 jobs through sector employees’ spending.
In 2019, BGC members paid a combined total of £3.2 billion in taxes, including £1.6 billion in betting and gaming duties and £1.5 billion in other taxes. The remote sector contributed the most, paying £1.8 billion in taxes. The industry also made significant contributions to the economy through sports sponsorship, horserace betting levy, and further investment.
The report projects a decline in revenue and employment for the industry in 2020, primarily due to the impact of Covid-19. Retail betting revenue is expected to decrease by 45% to £1.6 billion, while casino revenue may fall by 70% to £300 million. The closure of establishments and job losses have already occurred, with 374 betting shops and six casinos closing, resulting in the loss of 5,000 jobs.
Looking ahead, the report predicts a recovery in the longer term, with overall gross gambling yield expected to reach £11.1 billion in 2023. However, retail betting revenue may continue to stay below 2019 levels. The report also anticipates employment to reach 2019 levels by 2022 and exceed them in 2023, with 63,000 individuals employed in the industry.
Given the ongoing Gambling Act review by the government, it is important to consider the sector’s impact on the economy. The BGC fully supports the need for higher safer gambling standards and regulation changes but cautions against endangering jobs and tax revenues generated by the industry.
