UK Gambling Industry Economic Impact Questioned
New research commissioned by the Campaign for Fairer Gambling has suggested the UK’s gambling industry has a negative impact on the economy.
An update on the Gambling Commission’s pilot of financial risk assessments has been provided. ? Dmitriy, Pixabay
UK’s Gambling Industry Could Have Negative Impact on Economy
The new UK government has been told to raise taxes on the country’s gambling sector after a new piece of research suggested the industry has a negative impact on the economy.
A new study that was produced by economic consultancy National Economic Research Associates (NERA) and commissioned by the Campaign for Fairer Gambling has suggested that the sector has been “detrimental to the British economy” overall.
It argues that money has been diverted into gambling rather than being used elsewhere.
According to the research, online betting is seen by operators as being a high-margin, low-cost activity due to the fact this part of the sector requires little employment. The report says:
“Other industries where would-be gamblers might spend their money instead are much more labour-intensive than gambling. Therefore when customers spend money on these discretionary alternatives it creates more value in terms of overall economic activity, jobs created and wages paid out.” – NERA Gambling Report
What Do The Numbers Say?
The NERA study suggests that an average of ￡5.6 billion was spent annually on online gambling by British consumers.
It is claimed that this has had the effect of cutting economic activity in the UK by around ￡1.3 billion per year, while wages are down by about ￡2.6 billion as a result.
This year saw the Labour party elected as the UK’s new government, replacing the Conservatives who had been in power for a period of 14 years.
It remains to be seen how Labour, led by prime minister Sir Keir Starmer, may look to change the way that the gambling industry in the UK is taxed and regulated.
Derek Webb, who is the founder of the Campaign for Fairer Gambling, accused the Conservatives of having “failed to properly consider the fiscal, economic and societal impacts” of online gambling.
Responding to the NERA study, he said:
“Growing the economy will require adequately taxing the online gambling sector and placing constraints on the stimulation of online gambling – an activity that should be permitted but not promoted.” – Derek Webb Founder of the Campaign for Fairer Gambling
BGC Pushes Back on Research
But the Betting and Gaming Council (BGC), which represents the views of the betting industry in the UK, has pushed back against the new study.
A spokesperson for the body argued that its members support more than 100,000 jobs, as well as contributing some ￡4.2 billion in tax and generating over ￡7 billion to the wider economy.
Sports such as horse racing, football, darts, rugby league and snooker were among those the BGC said were being supported by the country’s gambling industry.
“Unnecessary restrictions on punters will not induce them to spend on galleries or museums, but instead it will force them to the growing unsafe, unregulated gambling black market online which contributes nothing to the economy, Treasury or sport while offering zero safer gambling protections. ” – BGC Spokesperson for the Guardian
In its pre-election manifesto, Labour said it would reform gambling regulation, but did not say how, while it said the party was committed to reducing gambling-related harm.
