Online Casino Gaming: A Boon for the British Economy?
People throughout many cultures have been gambling for a considerable time in an attempt to have fun. Many might question why it has such allure to so many people, but gambling and casinos have a significant impact on the state of the economy. The best online casinos in the UK rake huge sums of money for the UK government.
The British passion for gambling is widely known, and it is no surprise that the gambling industry in the UK is extremely profitable. In 2021 alone, the UK gambling industry alone generated 16 billion GBP in revenue.
The Growth of Online Casinos
Increased internet access, stringent regulation, and the proliferation of mobile devices are among the factors contributing to the exponential growth and dependency of online casinos.
What Does This Mean for the Economy?
As the industry continues to grow, it shows a significant positive impact on the country’s economy. Since the online gambling market is the largest in the UK, so is the impact.
Given that the UK holds more than 30% of the online gambling market and accounts for billions of pounds of revenue in a year, the industry makes up a significant part of the GDP, without which economic growth may be compromised.
The Positive Impacts of Online Gambling
Contributing to the economy directly via taxes, the industry produces employment opportunities, tourism, and overall growth of GDP, amongst others, gambling impacts the social and economic growth of the region.
Online casinos and sports betting sites require business analysts, customer service agents, risk analysts and managers, marketers, programmers, and UI experts, just to name a few. The industry has a vast scope for employment production, whether online or in its land-based counterparts.
Statistics show that in 2019, more than 100,000 employment opportunities were produced. And these are just the pre-pandemic numbers. Witnessing the influx of online casinos in the last couple of years, the number is multifold, with estimates of further increment in the future.
Revenue and Taxes
The UK has been engaged in online gambling for decades, generating considerable gross revenue for the last couple of years. Having shouldered 38.8% of the country’s total revenue since 2018, the online gambling industry carries most of the total economy tax funds.
The steady tax revenue system supports healthcare, education, infrastructure, and other national sectors that directly affect the well-being of locals. Consequently, more employment opportunities are created, GDP strengthens, and it all goes back into the economic cycle primarily driven by the high-volume industry.
In the current world context, the online gambling and betting industry has fulfilled the need for indoor entertainment, amongst others. People can now conveniently place bets, spin reels, and deal cards wherever they are.
The e-sport companies and casino jackpots offer prizes for up to thousands of dollars, equally attractive for both players and gambling companies looking to implement their technology. This paves the way for prominent consumerist trends. Technology enables secure transactions, pay-by-phone solutions, and payment by e-wallets and wire transfers, making the process more convenient.
A Strictly Regulated Industry
UK-licensed casinos observe strict rules, adhering to all authority guidelines. This helps to single out the problem gamblers and maintain a secure environment for the rest. In-house teams are present 24/7 to assist players, set limits sensibly, track cool-off periods, and maintain a responsible gaming attitude.
Such granular control is possible with UKGC, a government-regulated gambling commission responsible for maintaining and supervising. They make annual adjustments to the regulations and compile annual reports to track every fine detail.
The issue of problem gambling is one we all wish could leave our industry today, but this is comparable to wishing that no one will ever drive too fast or drink too much. All the infrastructure in the world could be in place, but there are likely to always be horror stories related to gambling. Therefore we need to make the decision regarding if all the fun players have up and down the country is worth the suffering of a few.
The Bottom Line
While the landscape of the UK online gambling industry ensures that the country reaps economic benefits, tax dodging may be a contemporary headline at times. However, it is still a better start than banning the industry altogether.
The UKGC continually adjusts its guidelines and monitors the market to ensure a positive influence. When the revenue is ploughed back into the community and funds public services, the system ensures that each penny of tax makes it back to the treasury.