Britain’s betting industry worth 6 billion and supports 100,000 jobs
Report by Deloitte reveals the important economic impact made by the betting industry on the British economy. The study, called ‘The Full Picture’ was commissioned by Ladbrokes plc and aims to provide a quantitative and qualitative analysis of the economic contribution of betting.
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The report reveals that:
- The retail betting industry alone generates 700 million in wages paid to staff; 800 million in profits (before interest and tax) and 700 million is generated in taxes.
- The total contribution to the British economy from the British betting industry is 6 billion GVA and 100,000 jobs. This is equivalent to 0.5% of GDP and 0.3% of total employment.*
In addition to quantifying the economic contribution of betting in terms of both direct and indirect impacts it also highlights the wider impact of the industry in delivering other socio-economic policy objectives.
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This reveals that:
- Betting provides a relatively high number of jobs for workers with no qualifications, boosting employment opportunities and skills development
- Betting has a regeneration impact because the high levels of footfall associated with betting shops help attract consumers to other retail businesses and generate critical mass effects
- The industry also supports employment in rural areas through its links with horseracing. The report also highlights the positive impacts of betting on sports through marketing as well as through direct sponsorships.
- 15% of horseracing’s annual income is derived from the betting industry
- Public policy is identified as a crucial factor in supporting the industry’s contribution to the economy and maintaining an effective regulatory environment.
Commenting on the report Simon Oaten, Betting and Gaming lead at Deloitte said: “The betting industry makes a significant contribution to the British economy – but is subject to intense international competition. 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 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 DCMS.
Christopher Bell, Chief Executive of Ladbrokes plc commented: “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. 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.”
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*The British betting industry is responsible for a direct contribution of 3 billion in Gross Value Added (GVA) terms and 40,700 full time equivalent jobs. The industry also impact on other industries through the supply chain and has an indirect economic impact of 3.1 billion, indirectly supporting 62,300 jobs in sectors such as IT, real estate and retail .
