Measuring the economic contribution of the British Betting Industry
New report reveals Britain's betting industry a key contributor to the UK economy directly generating £2.3billion towards UK GDP
19 March 2013
A new report by Deloitte reveals the important economic impact made by the betting industry to the British economy.
The study, called ‘The Full Picture: Measuring the Contribution of the British Betting Industry’, was commissioned by the Association of British Bookmakers and aims to provide a quantitative and qualitative analysis of the economic contribution of betting.
The report reveals that:
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, said:
“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% 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%, will cost the sector £60million (£7,000 per shop).
“2,700 LBOs make less than £300 per week (£15,000 p.a.). These shops employ 11,000 people and their profits fell by fell by 15% in 2011. MGD risks making these shops unprofitable overnight.”
Notes to Editors:
Deloitte developed the report independently using a variety of industry, Government and company sources and aim to provide a comprehensive assessment of the betting industry with detailed background on the impact and contribution of the industry to inform key stakeholders including policy makers, regulators, HM Treasury and Department for Culture Media and Sport.
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.