Modernisation of Gambling Taxes and How It Will Affect the Industry
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The UK gambling industry may face new challenges in the future. The Treasury could gain over 171 million pounds in tax revenues. Local gamblers can play on UKGC-licensed websites and independent ones.
In 2019, gambling operators provided 8 billion pounds to the UK economy and 4.3 billion to treasury. Report proposes capping local gamblers’ spending to 100 pounds per person monthly and limits on online and TV advertising. The authors of the study suggest this would motivate consumers to spend more in other segments like retail.
Gambling operators provided 8 billion pounds to the UK economy in 2019. 4.3 billion was paid to exchequer. If spending was reduced by 10%, treasury would get 171 million pounds.
The government is preparing for a review of the Gambling Act. The Act was introduced in 2005 and allowed UK-based businesses to buy TV and radio commercials and offer online betting. Since then, the industry has generated most of its profits through the Internet.
Report connects the expansion of online gambling with fewer jobs being created in the UK and falling economic productivity of the sector. Jonathan Portes, professor of economics and public policy at King's College, London, argues that the economic impact of this industry is minor in comparison with retail. Michael Dugher, the head of Betting and Gaming Council, is sceptical about the report's findings.
