Gambling is so popular in the United Kingdom that it is not just a popular pastime; it is now an important contributor to the country’s economy. According to a reliable new report, the gambling and betting business contributes a very generous amount of approximately £2.3 billion towards the Gross Domestic Product (GDP) of the United Kingdom. Britons are enthusiastic participants in the entire gamut of gambling options ranging from sports betting to casino games, either using the internet or at land based establishments.
Highly Regulated For Better Performance
The online gambling business is a fast growing segment in the UK betting industry and it benefits from being properly regulated, The country’s Gambling Bill of 2014 takes into account the expansion of the online gambling industry. Online casinos are taxed at the rate of 15% and they should also be licensed by the Gambling Commission. Online gambling sites based in the UK have to ensure that their websites conform to the rules and regulations laid down by the Gambling Commission in order to get approval to operate. While some online operators have had to make changes to their sites, others have had to rebrand themselves entirely.
Taxes Too High?
The Remote Gaming Association maintains the position that taxes on online gambling business shouldn’t exceed 10% because this would make the businesses unprofitable. The fact is that companies that operate in this business have passed the costs onto their customers. Since the gambling volumes have increased steadily since then, it is clear to see that the new taxes and regulations have helped boost the UK’s economy. Interestingly, countries like Spain and France haven’t been able to regulate their online gambling businesses well after they put in a similar regulatory framework as the UK’s.
Last year’s Machine Games Duty caused quite a few major brands to shut shop in the UK but these closures haven’t really had a major impact on the economy. As a matter of fact, people in the country seem to be very keen on gambling online, as seen by the number of mobile gambling apps being launched since the duty came into effect. Furthermore, the turnover of the industry has only increased during the same period.
Fixed odds gambling machines will be taxed at 25% higher and this will cause the industry to lose a sum of £335 million over a period of five years. Share prices of affected companies have also dropped but not by a number that should cause worry. There has been growth in the sector occupied by gambling machines and self-service terminals. In fact, the gambling industry in the UK has managed to evolve at a very fast pace by embracing a wide range of technological advances.
Interestingly, while the gambling industry in the UK does generate profits to the tune of £600 million per year, it contributes a far higher sum to the exchequer in the form of taxes. The industry does benefit very much from proper regulation and it will continue to contribute to the UK’s economy.