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.

Save More Money in 2018

Coins 1523383 1920

Subscribe and join the worldwide 52-week money challenge! Get the tools you need right to your inbox.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Share this post:

Recent Posts

Leave a Comment

*

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 →
Capitalism

Ironic | Capitalism Helped Defined By Karl Marx?

The word “capitalism” can mean many things to many different people. It is seen as a blessing to hundreds of millions, a scourge... more →