The iGaming industry is an important contributor to the UK’s economy, whether that’s in terms of taxes or supporting both direct and indirect employment. The Betting and Gaming Council, which is the standards body for betting and gaming in the UK, found that its members contributed a whopping £6.8bn in gross value to the economy in 2023 alone.
The iGaming industry can also have negative impacts on the financial health of individuals who struggle with gambling. That’s why, it’s important that we take both sides of the coin into account.
Taxes go towards infrastructure
The iGaming industry pays quite a hefty amount in taxes. In the UK, it is the provider rather than the player that pays the gambling tax. There are a few different brackets depending on what kind of iGaming they provide.
One of the most common is remote gaming duty, which is charged at a rate of 21% of profits. There are also independent brackets for lottery at 12% of profits and bingo games at 10% of profits. These taxes go towards national infrastructure, such as schools and the NHS.
Taxes and sports betting
For sports betting, a percentage of that money also feeds back into supporting the sport. This is most prominent in horse racing, where there’s a current debate over changes to taxes. It’s expected that levy payments will increase for the fourth year in a row, resulting in record contributions of £108m to the Horseracing Betting Levy Board. That’s a sizable increase from the £97m paid in 2021. During the same time, the average turnover per race has fallen 19%, highlighting the fall in income which is leaving the sport struggling.
The government has also been considering condensing the gambling tax system into one flat rate, which experts argue would cause more problems for floundering areas of the industry, such as horse racing. iGaming providers invest heavily in supporting the sport, contributing an average of £350m a year in media rights and sponsorship alone. Any increases in taxes in combination with a fall in income could have major impacts on the sport and the local economies it supports.
Statutory levy to aid responsible gambling
In November 2024, the government announced a new statutory levy for the iGaming industry, which is set to contribute £100m to preventing gambling harm. Half the funding will go directly towards supporting the NHS treatment of gambling addiction.
A further 30% of the levy will go towards supporting measures such as national public health campaigns and training for frontline staff. The final 20% will also support the reduction of gambling harm by funding the Gambling Commission’s and UK Research and Innovation’s (UKRI) work. Their research involves supporting vital projects which shape policy to reduce gambling harm. The levy will be charged at varying rates depending on the specific gambling activity while considering operating costs and the associated levels of harm.
Providing jobs
In 2023, the gambling industry directly employed 55,000 people in roles such as croupiers, dealers and bookies. There are also vast numbers of indirect jobs in areas such as graphic design and legal, so the industry supports approximately 109,000 jobs.
Giuseppe Faraone is one of the most trusted voices in the industry with over a decade of experience under his belt. He shares his expertise and knowledge with readers through his articles and his first book, The Untold Story of Online Gambling. He highlights the different roles that the iGaming industry supports:
“You might not realise just how many different moving parts go into an iGaming site. There’s software development, graphic and sound design for games, financial experts, legal and those who specialise in cybersecurity. That’s why the industry is able to support so many jobs both directly and indirectly.”
How does supporting jobs impact the economy?
Any industry employing the number of people that iGaming does will have a sizable impact on the economy as a proportion of each salary is reinvested back into the economy. This reinvestment comes through personal spending, as well as income tax and National Insurance which are taken directly from an employee’s earnings. These financial contributions help to support national institutions such as schools and hospitals.
Reinvestment in the economy also comes through the employee spending their salary. Any disposable income can be used at shops, restaurants and other venues throughout the country. Spending at independent shops has an especially important impact. For every £1 spent at a small business, 63p stays in the local economy, compared to 40p for larger businesses. The retained money contributes towards supporting local infrastructure and other industries.
What are the potential negative impacts of iGaming?
Individuals face the brunt of the potential negative financial impacts of iGaming. According to figures from the NHS and Gambling Commission, around 138,000 people in the country are estimated to be problem gamblers. The latest NHS figures also show that more than a quarter of those aged between 11 and 17 have spent their own money on gambling. The country’s services have been struggling to cope with an increase in problem gambling, with referrals to gambling clinics increasing 130% between April and September in 2024 when compared to the same period in 2023.
How does problem gambling impact financial health?
Those who have a problem with gambling are also likely to experience negative financial impacts as a result.
Problematic behaviour, such as overspending and chasing losses, can lead players to commit more money to gambling than they can afford. According to GamCare, 67% of callers between 2023 and 2024 reported some level of debt from gambling, and 76% disclosed general financial difficulties.
The impacts aren’t directly limited to problem gambling either, with 39% of callers affected by someone else’s problem gambling also reporting financial difficulties. This can involve struggling to cover bills, going into debt over gambling or taking out loans to spend on gambling.
Facing economic strain can lead to further problems in both mental and physical wellness, as well as damaging personal relationships. GamCare highlights that those struggling with finances due to gambling are more likely to suffer from anxiety, low self-esteem and depression, indicating how extreme the economic struggles can become.
What can be done to limit financial gambling harm?
There are already steps being made in the right direction when it comes to limiting the potential financial harm of gambling.
The introduction of the mandatory levy should lead to more support for organisations which help players struggling with financial harm. It will also contribute support towards research and campaigns to raise awareness for the issues before they develop.
There are also responsible gambling tools that players can use to limit their risk of exposure to harm, such as deposit, loss and session limits.
Deposit and loss limits directly target gambling finances, preventing activities such as overspending and chasing losses by capping a player’s spending.
Session limits set a maximum for how long a player is able to spend on the platform, which in turn helps to prevent harmful behaviour.
There are also more permanent solutions, such as self-exclusion, which completely stops the individual from playing on a platform, by revoking the player’s ability to login to the site.
The introduction of mandatory deposit limits
From the 31st of October 2025, the government has introduced mandatory spending limits at providers across the iGaming industry.
At the moment, deposit limits are opt-in, meaning that only those who go to the effort of setting them reap the benefits.
By making them mandatory, all players will automatically need to set a limit on their spending when they’re creating an account at a provider, lowering the risk of harmful financial behaviour.
How does the iGaming industry impact the economy?
There can be no doubt that the iGaming industry has a significant impact on the UK’s economy through tax contributions and its support of both direct and indirect employment. Money from both these sources goes towards crucial infrastructure like the NHS and schools.
As expert Giuseppe Faraone points out, there are more industries involved in iGaming than we might realise, making it an important market to support the nation’s economy.
It’s also important to recognise the negative financial impacts that iGaming can have on individuals who develop harmful behaviour. Overspending and chasing losses often lead to financial stress and debt.
However, the statutory levy, which is set to be introduced in the coming months, is an important step to support those negatively impacted by gambling.
In addition, mandatory deposit limits are another potentially effective change in limiting these harms.
The iGaming industry does contribute significantly to the economy, and while not all its impacts are solely positive, there have been important efforts made to prevent financial harm.