New report from Deloitte has found that betting contributes six billion pounds to the UK’s economy each year and is responsible for 100,000 jobs.
Friday 19th February 2010
A new report from financial advisory firm Deloitte has revealed that the betting industry in the United Kingdom is worth six billion pounds a year, which is equivalent to half a percent of the nation’s total gross domestic product.
Commissioned by British online and land-based betting giant Ladbrokes, The Full Picture report found that the betting industry also provides over 100,000 direct and indirect jobs, which is 0.3 percent of the United Kingdom’s total employment.
Deloitte reported that the retail betting industry alone generates £700 million in wages each year along with £800 million in profits while providing £700 million in tax.
In addition to quantifying the economic contribution of betting in terms of both direct and indirect impacts, the report also highlighted the wider impact of the industry in delivering other socio-economic policy objectives. It stated that betting provides a relatively high number of jobs for workers with no qualifications, boosting employment opportunities and skills development, and has a regenerative impact due to the high levels of footfall.
“The betting industry makes a significant contribution to the British economy but is subject to intense international competition,” said Simon Oaten from Deloitte.
“With Internet and mobile betting growing, the challenge for government is to balance effective regulation with creating the conditions for the domestic industry to compete.”
Deloitte stated that 15 percent of horseracing’s annual income is derived from the betting industry, which helps to support employment in rural areas through links with the sport. The report also highlighted the positive impacts of betting on sports through marketing and direct sponsorships.
“This report comes at a crucial time for the industry and will help inform the government and stakeholders about the important contribution the industry makes to employment and taxation in these difficult economic times,” said Chris Bell, Chief Executive Officer for Ladbrokes.
“We hope it will contribute towards more informed policy making and help remove much of the uncertainty that has surrounded the taxation and regulation of our industry in recent years.”
