UK betting hands over £2.3bn to UK GDP per year!

UK betting hands over £2.3bn to UK GDP per year!

Britain’s betting industry generates £2.3bn towards UK GDP annually, making it a key driver for the country’s economy according to a new report by Deloitte. The study, called ‘The Full Picture: Measuring the Contribution of the British Betting Industry’, was commissioned by the Association of British Bookmakers and aims to provide a quantitative and qualitative analysis of the economic contribution of betting. Commenting on the report Simon Oaten, Betting and Gaming lead at Deloitte said: “The betting industry continues to make a significant contribution to the UK economy. Changing technology, such as mobile, smartphone and contactless payments, and regulation, including point of consumption and machines, will have a direct impact on the future contribution of the sector. Each will have the potential to drive significant change in the next 24 months.” Neil Goulden, Chairman of the Association of British Bookmakers, added: “Betting shops serve over eight million customers a year, and while we see major retailers closing down and shedding jobs almost weekly, betting shops continue to invest in the UK’s high streets. We are a highly regulated and socially responsible sector, which can provide economic growth, jobs and retail footfall given a fair and balanced tax and regulatory framework. “However, the Licensed Betting Office sector is under huge financial pressure, driven by 9% retail inflation, and growing tax burden. We are a ‘soft target’ for HM Treasury – the new Machine Games Duty (MGD), for example, introduced in February at 20pc, will cost the sector £60m (£7,000 per shop). “2,700 LBOs make less than £300 per week (£15,000 p.a.). These shops employ 11,000 people and their profits fell by fell by 15pc in 2011. MGD risks making these shops unprofitable overnight.” Other findings in the report include:
The British Betting Industry directly supported 38,800 jobs in 2011, and in doing so, generating £2.3billion towards GDP;
The sector is smaller than it was in 2008, when last reviewed, but the retail component contributes an equivalent level of taxation to the exchequer as it did then;
The effects of the recession and a move to offshore betting may have been significantly worse for Licensed Betting Offices (LBOs) had electronic gaming machines not increased in popularity in recent years;
The industry has a far reaching impact on the rest of the UK economy, with a total economic footprint of £5bn in terms of Gross Value Added (GVA);
The industry as a whole faces a number of challenges from macroeconomic and regulatory factors, such as the proposed ‘point of consumption’ tax;
There is little doubt that the industry will continue to contribute economically and socially.

first published on Yogonet

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