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Deloitte report on Uk Betting Industry
Thursday March 21,2013 : BRITAIN’S BETTING INDUSTRY A KEY CONTRIBUTOR TO UK ECONOMY
Deloitte report highlights economic importance of British betting industry
A Deloitte report commissioned by the Association of British Bookmakers to provide an analysis of the economic contribution of betting in the United Kingdom makes for some interesting reading.
While not concentrated on the online market, the survey highlights the plight of the UK betting industry affected by economic conditions, offshore betting and a growing tax burden.
- The British Betting Industry is a key contributor to the UK economy, directly supporting 38,800 jobs in 2011, and in doing so, generating GBP 2.3 billion towards GDP;
- The sector has shrunk since 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 GBP 5 billion 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.
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 percent 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 20 percent, will cost the sector GBP 60 million (GBP 7000 per shop).
“2,700 LBOs make less than GBP 300 per week (GBP 15,000 p.a.). These shops employ 11,000 people and their profits fell by fell by 15 percent in 2011. MGD risks making these shops unprofitable overnight.”
The complete reportis titled "The full picture- 2nd edition: Measuring the economic contribution of the British Betting Industry. March 2013"
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