The gambling industry economy in the UK

play-593207_640The gambling industry in the UK contributes well over 2 billion a year towards the UK GDP and it supports about 40,000 jobs. It’s total economic footprint is 5 billion pounds and there are no signs of it slowing down in the future.

This large contribution to the UK GDP is made possible by successful sites like Royal Vegas online casino, which happens to be one of the best of its kind on the internet. This site features over 600 games in a variety of categories that include blackjack, poker, keno, baccarat, slots, and much more. They also offer some very impressive bonuses and promotions, like the 1,200 pounds in welcome bonuses offered to new players. Plus, because they are on the Microgaming network, you can trust that all transactions are secure.

Back in 2014, the UK Gambling Bill went into effect and it required online casinos to sign up for a license from the Gambling Commission and to pay a 15% consumption tax. This meant that some operators had to make changes to their sites, but others had to create an entirely new brand, like Titanbet Casino.

Per research from KPMG, the Remote Gaming Association said that a tax rate that is over 10% will increase operating costs in the British market significantly. In other words, companies should probably start re-evaluating their positions to prevent an unlucky fate..

There are some countries, like Spain and France, who have seen a rise in unregulated and unlicensed sites as a result of similar regulations. But, the good news is, there are some countries who have been able to enforce regulations successfully, and it’s hoped that the UK will follow in their footsteps.

In the next five years, it is estimated that the new higher tax rates for fixed odd machines will cost the industry over 300 million pounds. But, thankfully, these changes will not cause any real damage. Plus self-service terminals, gaming machines, and the significant increase in app use have all caused tremendous growth in the industry.

These regulations are expected to influence the future contribution of the sector because of their potential impact on pre-tax profits and company earnings. In fact, this may result in the closures of some betting shops, both independent and big name. But despite a multitude of pressures, betting is still a huge industry with profits of approximately 600 million pounds. Admittedly, there will be some challenges ahead, especially when you consider that gambling is the only industry in the UK that pays more taxes than it makes in profits. But, it’s also important to note that, the gaming industry has shown that it is adaptable and it’s ability to embrace changing technology, like smartphones and contactless payments, will only fuel its growth more.

Join our newsletter

If you like Critical Financial, subscribe and get our latest content via email.

Powered by ConvertKit

Share this post:

Recent Posts

Leave a Comment

*

May the 4th Be with You: Star Wars Swag on Amazon

May the 4th Be With You: Star Wars Day Swag

It began as the punniest holiday ever but quickly grew into an earnest (if somewhat random) celebration of the long-running (and still... more →
People count the money to buy a house in future success.

Avoiding Mortgage Scams: Don’t Fall for Unreasonable Promises

If it sounds too good to be true, it probably is. That’s sound advice for almost all aspects of life, including the search for... more →
Eat for free for a whole month via the meal kit companies discounts for new customers.

How To Get a Month of Free Food: 9 Meal Kit Companies Offering Discounts to New Customers

Play your cards right and you might be able to line up a month’s worth of free meals if you were to try out all nine of the meal... more →
Generate extra cashflow -- here are 97 ways.

96 Awesome Ways to Generate Extra Cashflow

Who doesn’t want more money nowadays? We’ve got you covered on that front. Here comes a long list of different ideas on... more →
Valentine's Day gifts that won't destroy your budget

Valentine’s Day Crafts Are Romantic Rescue from Crazy Inflation

Fall for the hype this week and you’re out an average of $143.56 for Valentine’s Day. Crafts and other do-it-yourself tactics... more →

Ultimate Guide to Bitcoin — FREE Ebook!

Have we got something for you: a free ebook about bitcoin! more →
Get a flu vaccine.

Why You Need To Get a Flu Vaccine Right Now

Flu vaccines aren’t just for the elderly  anymore. Here are 25 reasons you should go get vaccinated. more →
Financially successful

Acquire the Trait All Financially Successful People Have

Financially successful people tend to all have a lot of self-discipline. Improving your discipline in one area of your life often spills... more →

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →
This lender repos 1 in 3 cars it finances -- how to avoid this cycle

This Lender Repos 1 In 3 Cars It Finances — How to Avoid This Cycle

You frequently hear about America’s crushing student loan debt, but cars are not far behind — especially subprime auto... more →