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British industry in general has not fared wel
Monday May 14, 2012 : BRIT GAMBLING INDUSTRY STILL BATTLING
Latest independent IBIS World study finds that the industry in general has not fared well during the past five years.
The independent research organisation IBIS World has released its latest updated study of the general gambling industry in the United Kingdom, concluding that it is in a "much better place than 10 years ago," but that it has not fared well during the past five years.
The financial crisis following indoor smoking bans started a decline in revenue and profit that the industry is only just starting to recover from, researchers found. Consequently, IBISWorld estimates that revenue will decline at an annualised 0.7 percent in the five years through 2012-13.
While in a healthier economic environment major events would encourage industry growth and profit, persistent negative economic conditions are expected to reduce and negate the positive effects that the London Olympic Games may bring, the researcher claims.
The industry has undergone many changes due to events affecting broader society and the industry. Importantly, these events have occurred in quick succession, creating a combination of negative conditions all affecting the industry at the same time.
According to IBISWorld industry analyst Craig Shulman, "...the financial crisis followed indoor smoking bans introduced the year before, started a decline in revenue and profit that the industry is only just starting to recover from". The decline has been prolonged by the introduction of government budget cuts, online gambling revenue moving offshore and a long-term decrease in the popularity of gambling.
The negative conditions that surround the industry are expected to dissipate slowly over the next five years, with the expectation of a recovery as general economic conditions help raise disposable incomes.
In addition, increasing accessibility and investment in the industry will reap dividends over the period. This will help increase profit, although increasing competition from overseas online gambling operations will slow growth in the betting segment.
Nonetheless, further investments into emerging gambling technology are expected as strong growth opportunities continue to be identified. Domestic gambling activity is expected to be stimulated by the occurrence of the 2014 Glasgow Commonwealth Games and 2015 Rugby World Cup.
IBISWorld forecasts that over the five years through 2017-18, industry revenue will return to growth.
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