As of March 2022, the UK had 6,219 betting shops. This was a 19.1% decrease from March 2020. Online operations allow betting operators to significantly reduce costs associated with betting offices including rent, utilities, and staffing.
The casino industry shares a lot of similarities with bookmakers, offering customers the opportunity to place bets on a variety of markets is just one of them. The rise in popularity of online casinos has also paved the way for costly offline casinos to close their doors, but how do both options impact the business market?
The impact that offline casinos have on local businesses is significant. Driving footfall to a specific area is directly beneficial to a number of local businesses. Bars, restaurants, and shops will all see an increase in customers when located close to a casino.
Transport to and from casinos also stimulates local businesses and services including car parks, public transport, and taxis.
Offline casinos are also equipped with bars and eateries, meaning the hospitality industry also benefits from food and drink being brought in from outside sources. This also benefits local logistics companies that deal with deliveries.
Utility companies provide offline casinos with heat, light, water, and gas and maintaining the running of a busy space open to the public also creates work for a lot of in-house and external companies.
With so many businesses benefitting from offline casinos, it is hard to imagine how their online counterpart could compete. However, there are a range of businesses and industries that benefit from online operators including the cryptocurrency market. E-wallet companies also see the knock-on effect of crypto casinos as do internet providers, security software providers, mobile device manufacturers, software developers, and many more.
The casino industry is subject to taxes whether it is an in-person betting facility or online. The taxes paid by betting operators and casinos will be distributed across improving UK infrastructure, education, and health care. A percentage will also be given to programs in place to help people with gambling-related issues.
Gambling operators are subject to a 15% levy on the first £2,686,000 earned. The tax rate increases based on the amount earned beyond this with the following £1,852,000 subject to 20% tax. The next £3,243,000 has a 30% tax rate, the £6,845,000 after this is taxed at 40%, and the remainder faces a 50% tax levy.
Physical and online casinos differ in their employment needs. While online operations still require staff to run operations, a physical casino requires more for the business it can carry out.
Physical casino employment is also relatively local compared to online operations with all staff needing to access the location. Dealers, management, catering, cleaning, and security staff will all be employed by physical casinos from the local area.
Online casinos require software developers, customer support staff, security consultants, and live dealers but the majority of online casino staff will work remotely.
Some online casino staff may be required to work from a central location. However, the employment and distribution of jobs is typically much more spread out than that of physical casinos.
While online and physical casinos technically provide customers with the same service, they are so different it is difficult to compare the two.
Online casinos offer a great level of convenience and the best UK crypto casinos allow their customers to bet wherever and whenever they want. They allow operators to reduce overheads and invest in technology to create the best user experience available and embrace developing technologies like blockchain, AI, VR, AR, and crypto.
The external businesses that benefit from online casinos tend to be more spread out and can be found all over the world, compared to the local businesses and industries that benefit from physical casinos.
Physical casinos also offer a more social experience compared to online alternatives, but that is beginning to change with great social capabilities being explored by online casinos.
Both have their place in the gambling industry, and online betting is set to become even better with the rollout of high-speed internet connections and improved technology.
