The online betting industry makes more of a massive impact today than ever before on the UK economy.
Considering how the state of the world, current cultural and political parameters, and the development of technology shape societal needs today, it seems that the environment is ripe for online gambling.
The UK gambling industry provides over 50000 jobs
Current employment numbers offered in the gambling sector are 10000 more than the numbers picked up in last years’ surveys.
These statistics include land-based casinos, lotteries, bingo halls, arcades, etc., and anything officially incorporated by the UKGC in the online sector, such as online betting websites, online casino games, online bingo, lottery (including the National Lottery), and e-sports, among other operators.
The offline sector provides more jobs due to more necessary human assistance with gambling machines, such as service staff and table dealers, auditors, etc.
Industry experts at kingcasinobonus make thorough analyses on the UK gambling economy focusing on it treats gambling in the online (or remote) sector. They explore the profound role of the Gambling Act of 2014 and the UK Gambling Commission, its significant rules and regulations, and its proclaimed mission to regulate the industry and protect British players.
However, the online games industry did provide a total of 10000 roles throughout last year.
In addition, many British citizens are employed by various online casino companies based in the Isle of Man, Malta, Alderney, and Gibraltar, raising the numbers to almost 100000 jobs.
This leaves quite an impact on the UK economic scene. The industry leaves an annual economic footprint of over £5 billion. It brings an immense contribution to the country treasury, which redirects the funds to community causes and social improvement.
Tax numbers prove huge gambling contribution to UK economy
In the United Kingdom, £2.83 billion in tax reached the treasury for the 2020-2021 tax year.
The number was even more impressive for 2019-2020, with a total of £3.02 billion, and it has been relatively steady, previously amounting to £2.6 billion.
The UK Gambling Commission ensures that taxes are distributed equally between the land-based and online market sectors.
However, online gambling still carries more of the load for the total economy tax funds, having shouldered 38.8% of the country’s total revenue since 2018.
There are many reasons why the online sector is a bit more reliable for the economy. For one, taxes can be much easily dodged by offline operators.
Secondly, although the offline sector must employ more people, online operators have lower labour costs and ongoing business expenses (overheads). This makes tax a lot more manageable.
Recently, UK authorities raised the consumption tax from 15% to 21%, which affected many land-based gambling merchants but did not influence the online sector to the same extent.
On top of that, the UK Gambling Commission declared gambling as a leisure activity, so the operators, not the players, only support taxes.
Although many online gambling services gave up when the UK Gambling Commission increased its influence in 2015, most remaining operators had no issue adhering to the stricter policies. They owed this to the increased popularity of chance games, especially in the comfort provided by the online environment.
Leisure gambling feeds into current trends and consumerism
The online gambling industry includes many major trends in society and culture, especially the use of new technology, the flexibility of managing transactions on the go, and the opportunity for accessible entertainment after a long day of work.
It only takes a few clicks for Brits to access their favourite games while waiting in line for coffee, commuting, or taking a breather during the day. It is also very convenient for people who find it difficult to leave the house.
In the current world context especially, the needs for entertainment and keeping to the safety of one’s home have been catered to by the flexibility of playing online chance games, be those video slots, live casinos, table games, online lottery, and much more.
Over 36.6 million British people in 2018 played video games, including online casinos, and 3.1 million were keen on e-sports, maintaining the gross gambling yield per annum close to 14 billion.
The e-sport companies can offer prizes as large as £20000, making them attractive for players and online gambling companies looking to implement their technology.
This opens the door for prominent consumerist trends. New technology allows for increasingly secure encryptions that permit payments by e-wallets, pay by phone solutions, wire transfers and generally easy transactions.
UKGC strict gambling regulations ensure a positive impact
An aspect that supports the fair contribution of the gambling market to the UK economy is how well-regulated it currently is by the UKGC.
The government protects its citizens from the potentially harmful effects of gambling by ensuring that the industry maintains a positive influence.
Every UKGC-regulated online casino must provide a standard series of responsible gambling tools and measures that enable operators to notice problematic gamblers as early as possible. These should also help prevent the development of gambling disorders and assist those already suffering from such an addiction.
This set of tools includes the options to set limits for the time spent per gambling session, deposits, losses, wins, etc. It should also provide self-assessment tests, budget calendars, self-exclusion and cool-off periods, withdrawal reversals, and many more.
Each online gambling site should employ an in-house team that is available and prepared to assist British gamblers 24 hours daily. Help should come in setting their limits, monitoring their gambling habits, understanding the stuffy terms and conditions of the website. Any other related queries they may have.
Online gambling is one of the most productive UK industries
Given the success of the gambling sector, it makes sense that the United Kingdom derives its taxes from online gambling and keeps strict control over its operators. It is a better strategy than altogether banning it as other countries do due to its inherent risks.
The system is cleverly thought out. It works even in worst-case scenarios, as all unpaid taxes return to the country treasury and are redirected towards schools, libraries, and hospitals.
An annual report conducted by the UKGC monitors the online gambling market constantly to improve the industry and readjust it according to the population’s needs and the UK economy.