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The Impact of Online Gambling on the UK Economy

Online gambling is a huge industry. It's worth millions upon millions of pounds and continues to grow as more and more casinos arrive on UK shores.

Online gambling

In recent years there's been a huge rise in new casinos, bringing the latest technology in order to bring in brand new players.

These sites are regulated by UK authorities and what that's doing is welcoming some serious money into the country through tax.

While we're all familiar with the likes of Ladbrokes, William Hill and Betfair, you'll find the online portal for UK players and smaller names are also welcoming thousands of players and placing the industry on the mass scale it is.

It's estimated the gambling industry as a whole is worth £14.5billion in the UK, with companies being required to pay a minimum of 15% in taxes, although that can climb as high as 50%.

For those gambling companies earning up to £2,370,500 a 15% tax is added. That then rises to 20%, 30%, 40% and 50% the more profit that is made.

That has made the industry a major tax payer in the country and one that the government heavily relies upon.

Online is the biggest payer of taxes in the country, worth 39% of the industry, which calculates at around £5.6billion gross gambling yield. Bookmakers then make up 22%, and the percentage shift to online continues to increase.

The legislation to tax profits on gambling companies was introduced in 2014 and was largely beneficial to punters, as they are no longer taxed on their winnings. Since then there have been a number of changes which has seen profits fluctuate, most notably the law change to drop the maximum stake on fixed odds betting terminals in land-based bookmakers.

That's led to a number brands posting significant losses, which will undoubtedly be a hit to government coffers too.

What has been hugely welcomed though, is that regulated casinos in the UK has meant that the casinos themselves must follow certain protocols, most notably improve data protection and increase security measures. What that is doing is increasing confidence in gaming companies and in turn welcoming an increase in players, more profits and higher taxes.

Those taxes then help pay for the likes of the NHS, improved public services and much more.

Of course, it isn't just profits that are having a large impact on the UK economy either. The gambling industry in the country employs over 100,000 people, more than many large high-street retailers and in most cases employees are earning significantly above the living wage.

It's a secure sector and will continue to be a major contributor to the UK economy, particularly as technology is making it safer, and more fun, than ever before.

Of course, many people will be quick to point out the cons of the industry, but it's clear to see plenty is put back in too, through employment, taxation and in many cases charity too.

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