A recent report by the Campaign for Fairer Gambling, produced by the National Economic Research Associates (Nera), has cast a critical light on the online gambling industry’s impact on the UK economy. The report claims that the surge in online gambling activities has diverted funds from sectors that generate more significant economic activity, resulting in a reduction of £1.3 billion per year in economic output and a £2.6 billion decrease in wages. While online gambling revenues have risen from £4.2 billion in 2015-16 to £6.5 billion in 2022-23, the report suggests that the economic benefits of such growth are limited due to the industry’s high-margin, low-cost nature and minimal employment contribution.

Industry voices, however, have raised concerns about the report’s findings. The Betting and Gaming Council argues that the sector supports 110,000 jobs and contributes £4.2 billion in tax, warning that excessive restrictions could drive gamblers towards unsafe, unregulated markets. They emphasise that these offshore activities offer no economic benefits or safety protections. Meanwhile, the Coalition Against Gambling Ads highlights the report’s exposure of the substantial social and economic costs linked to problem gambling, advocating for reforms akin to tobacco taxation. The debate continues as the government considers potential tax reforms ahead of the autumn budget to balance revenue generation with harm reduction.

Source: The Guardian