The online gambling (iGaming) industry in the United Kingdom is a multi-billion pound industry. The popularity of online gambling significantly increased during the pandemic when people got bored inside their homes and needed a bit of entertainment. Regular visitors of land-based casinos also started exploring and enjoying online gaming because they were prohibited from going out.
The online gaming industry in Britain is expanding every day, with new online casino sites being set up everywhere. Technological advancements have allowed sports bettors to access up-to-date sports news and odds. Gamblers also now have access to virtual tables and state-of-the-art casino games. So does online gambling have a positive effect on the UK economy? Continue reading to find out and discover what some of these positive effects are.
Online casinos and sports betting sites require call centre agents, risk analysts, marketers, programmers and business analysts, to name a few. Last year the online gaming industry employed over 10,000 employees in the United Kingdom, Gibraltar, Malta and the Isle of Man, which had a remarkable positive effect on the economy. An estimated £5 billion brought a substantial contribution to the treasury. Tax funds collected in 2021 were used to make considerable social improvements.
Suppose you consider people or services indirectly related to the online gambling industry. In that case, you can include businesses that install internet connections to homes and payment services used by gamblers, to name just two. This increases the number of jobs created considerably.
The United Kingdom declared that only operators should be taxed for gambling. The revenue service sees online gambling as a leisure activity, and therefore it deems it unnecessary to tax online gamers. Online operators paid in the 2020-2021 tax year 38.8% of Britain’s total tax revenue. This amounted to an astonishing £2.83 billion in tax revenue.
Tax revenue improves the infrastructure, supports the UK health system, pays unemployment funds, etc. Jobs are created, and people who’ve lost their jobs due to COVID can support their families. The health system can employ medical staff and purchase the necessary equipment and medicine to look after citizens who require medical care.
The online gambling industry is here to stay, and we’re grateful for that as the industry leaves a massive positive footprint on the UK economy. With the United Kingdom Gambling Commission (UKGC) backing and regulation, we’re sure that the iGaming industry will only have more favourable economic results in Britain’s future.