The UK gambling industry garnered an additional £1 billion ($1.31 billion) from players over the past year, according to the Gambling Commission’s new figures, which is likely to intensify calls for higher betting taxes in the budget announcement on Wednesday.
The data reveals that betting companies earned GBP12.6 billion ($16.6 billion) from services excluding lotteries in the 12 months leading to March, marking a 9.3% increase from GBP11.5 billion ($15.1 billion) the previous year.
A significant portion of this growth originated from online casino games, which saw their gross gambling yield rise nearly 15% to GBP5 billion ($6.59 billion). This number is now 55% greater than at the onset of the Covid-19 pandemic.
Online casinos have been criticized by campaigners, including former Prime Minister Gordon Brown, for their addictive nature, sparking discussions about imposing higher taxes on these games.
Iain Duncan Smith, chair of a cross-party group analyzing gambling harm, noted the striking profits. “Uniquely, gambling companies derive profits from highly addictive products, often targeting our most deprived communities,” he stated.
“It’s evident that more addictive gambling forms like online casinos and machines in adult gaming centers should face higher taxes to address the extensive social issues they cause.”
Meg Hillier, chair of Parliament’s Treasury committee, stated: “We believe that addictive online betting should incur higher taxes than gambling forms with cultural benefits, such as horse racing and bingo halls. It’s crucial for the government not to yield to industry fearmongering about higher gambling taxes leading to job losses.”
“Unfortunately, we are not surprised to hear claims about gambling firms being financially strained while they simultaneously invest billions in advertising,” Hillier added.
The gambling industry has been lobbying the Treasury to restrain tax hikes ahead of Chancellor Rachael Reeves’ Commons address. Several operators have warned of severe actions if duties increase. Betfred, for instance, announced plans to close all 1,287 high street betting shops, while Evoke, owner of William Hill, suggested possibly shutting up to 200 shops.
Other industry segments are also expanding. Adult gaming centers reported a 10% increase in winnings, generating GBP682.9 million ($900.3 million) over the year. Despite this, these venues have faced criticism for targeting poorer areas and not adequately supporting self-exclusion programs.
The number of adult gaming centers slightly decreased from 1,451 to 1,415, and the total number of gambling premises dropped from 8,328 to 8,234.
The Betting and Gaming Council emphasized that the figures do not capture the complete picture. A spokesperson stated: “These statistics do not account for recent regulatory changes, which will significantly affect growth and jobs, including a new GBP100 million ($131.8 million) levy to fund research, prevention, and treatment for problem gambling and gambling-related harm, alongside new financial vulnerability checks introduced in February.
The council also stresses that ministers should ensure the budget does not “impose measures that weaken the regulated sector” while bolstering the “unsafe” and “unregulated” black market.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com