In today’s age of mobile phones and easy-to-download apps, iGaming is becoming more popular worldwide. From online sports betting to virtual casinos, there have been many technological developments that have allowed for this growth to happen.
As a result, iGaming has also taken up a more significant percentage of the economy of the United Kingdom, like in many other countries. The aforementioned technological advancements have allowed this to happen. But just how good is this for the UK’s economy, anyway?
To be able to delve into the specifics of the iGaming sector’s impact on the UK economy, we’ll need to know a little bit more about it, first.
When we say the iGaming industry, we refer to all forms of online gambling and betting on the outcome of certain events or games. This includes sports and esports competitions as well as different games like poker and roulette. All of these services can also be found in the UK on the best UK casino sites.
When it comes to this country in particular, we can see impressive results. For example, the online gambling market size in the UK reached £5.9 billion in 2022. However, some experts predict the market to grow by 5.4% by 2028. This would bring the market size up to a total of £8.37 billion that year.
This industry is only becoming more popular thanks to new technology, blockchain, and innovations appearing on the market.
Knowing the size and scope of the iGaming industry in the United Kingdom, we can only predict a positive economic impact. If the numbers are not enough, some reports have even stated that this industry will generate 15,000 tech jobs in the next five years.
These jobs are planned to be highly paid and highly skilled, which also means a lot of investment into training and development programs. Even now, the industry supports 119,000 jobs in the UK. It’s difficult to deny the iGaming industry’s impact on job creation.
There is also the matter of tax revenue. The Office for Budget Responsibility estimates the betting and gaming duties to rise up to £3.5 billion in 2023-24. This is a significant growth when we consider the number equaled £1.62 billion in 2022-23.
Overall, these promising numbers are sure to stimulate entrepreneurship and business growth in the iGaming sector of the UK, as well. Hundreds of new online gambling sites based in the UK are popping up every minute.
Innovation and Technology
The iGaming industry also provides significant stimulation in technological innovation. The possibilities of virtual reality in terms of online casinos have piqued the interest of many developers, scientists, and entrepreneurs. Differentiating oneself from the competition is always the number one goal of any business, and competition is high in this industry.
It’s no secret that the public is interested in these developments, as well. After all, a better casino experience is always welcome in the world of online gambling. This can come in the form of better and more personalized offers, more immersive gambling and betting experiences, and more effective customer service.
Supply Chain and Ancillary Services
In order to offer the best possible service to their customers, businesses often employ ancillary services. The iGaming sector is no different.
For example, iGaming businesses employ legal and financial services to protect themselves and their players. They may also employ software development services from the best companies in the industry for the development of online casino games. Playtech and Evolution are some of the most popular companies that come to mind.
Finally, online gambling businesses may also employ the services of marketing agencies to promote and advertise their websites.
Overall, these ancillary services needed by the iGaming industry create even more economic opportunities and growth for UK companies providing these services as well as their respective industries and sectors.
The iGaming industry has also stimulated regional development in many different areas of the UK. Some examples include Edinburgh, Heathrow, and Newcastle Upon Tyne, although there are more to be named.
The Think Global, Create Local analysis delves deeper into the impact of the iGaming industry on different regions of the UK.
International Trade and Tourism
The UK’s iGaming sector is also bound to attract international attention. There is no law in place forbidding foreigners from signing up for UK gambling websites. As such, users from foreign countries are free to create accounts and make payments on these websites.
Given that these websites are based in the UK, this means more income from international trade and tourism in the UK.
Additionally, the UK received about 30 million international visits in 2022, and may even reach 35.1 million in 2023. These visitors may generally also want to try out the gambling system in the UK. In turn, this will bring more income to British gambling companies. This is evidenced by the fact that the United Kingdom casino tourism market is set to reach £8,3 million by 2032.
In conclusion, the iGaming sector in the UK is slowly becoming more than just entertainment. Now, it is turning into a significant contributor to the country’s economy.
From creating job opportunities through stimulating innovation, all the way to attracting international tourists, the gambling industry has managed to achieve this through several means.
We can see there is much potential for further growth and increased importance to the economy of the United Kingdom. And if the numbers so far have been any help, we can be sure this potential will come to fruition.