UK gambling industry in 2022
Friday, August 26, 2022
The UK gambling industry is expected to exhibit a lot of growth between the years 2022 to 2026, which is estimated to heighten to $142.83 billion. The increase is due to the influence carried from adopting online gambling, esports, and sporting events into the industry. Implementing Artificial intelligence (AI) in gambling is one of the prime factors driving gambling in the UK to its success.
Add to that the recent inclusion of bitcoin and live gambling by vendors, and you have a recipe for sizable demand in the business. With a lot of platforms from the industry offering promotions and bonuses, it’s a difficult market for punters to resist. This guide includes an up-to-date analysis of the countries’ market structures.
How is the UK gambling market divided?
The overall betting environment includes online gambling, the lottery, and casinos. Let’s take a look at how each of them performs and contributes to the UK gambling trade. It would be naive to believe that the contribution does not vary between online and traditional markets.
Making recent news (at the time of writing this article), Michael Dugher, CEO of the country’s Betting and Gaming Council, which constitutes 95% of the regulated physical gambling spaces, has warned the Prime Minister of the hard-hit taken on by the industry, due to the price-hike in energy prices. Between the 6,500 betting shops and 121 casinos, 44,000 people are directly employed while supporting 48,000 other jobs in the country.
All equating to a contribution of £4 billion to the UK economy, plus £2 billion in taxes annually. Over the last few years, more than 200 physical betting shops have closed. If things continue as they have been in the sector, the contribution rates will drop significantly.
Thanks to the relaxation of gambling laws brought on by the Tony Blair administration and online gambling, the betting industry has inflated. In 2007, the Gambling Act 2005 came into effect, thus allowing TV advertising to include sports betting, online casinos, and poker. This has led to betting companies having direct access to people’s homes. Bookmakers and online casinos could now entice new players by offering betting sign-up bonuses and other promotions directly to potential customers where before they were restricted. The income earned from online betting has soared from £817 million in 2009 to billions in over a decade. Reference: Click Here
As already mentioned, around 121 casinos in the UK are struggling to retain their operating statuses. This is a threatening fact to the UK economy because physical casinos are proven mechanisms to keep inflation rates low and reinvest money into the economy. Brick-and-mortar casinos directly employ close to 100,000 people per annum, especially within the hospitality industry. Inflation is the result of many people holding on to big sums of money, whereas if money is spread, it holds less value, meaning less inflation. The revival of casinos on land is critical in restoring the sector’s contribution to the country’s economy.
Of all online gamblers, the UK tops the list. The numbers have been rising since 2018 and are set to carry on with the trend to an extent that’s driving traditional casinos out of business. All while considering the political and cultural perimeters and developing technological advancements, online casinos in the country are at their prime. Yes, it’s a given fact that land-based casinos employ scores of people, but the online industry in the UK created over 10,000 jobs in 2021 and continues to grow its sector.
The lottery at first aimed to raise funds for good causes and less about gambling. That changed with the first jackpot draw that took place in November of 1994, with the chance of taking the top prize of £7 million. Since then, the jackpot has seen countless people over the years walking away with life-changing amounts. About 45% of the money spent on tickets is distributed in prizes, although that number has declined.
The National Lottery retains its number 1 spot for the UK's most popular form of gambling. In 2017, 8.6% of survey respondents admitted to participating in the Lotto, a number which rose by 14% by September 2021. All the evidence points to it continuing to grow and contributing to the UK’s economy.