Deloitte: UK betting worth £6bn, 100,000 jobs
The British betting industry is worth £6bn and employs 100,000 people, according to a new report from 'big four' auditor Deloitte published this week...
THE UK BETTING industry is worth £6bn ($9.6bn, 6.9bn) and employs 100,000 people, according to a new report from Deloitte published this week.
The figures, equivalent to 0.5% of UK gross domestic product (GDP) and 0.3% of total UK employment respectively, are published in a study entitled The Full Picture commissioned by Ladbrokes to illustrate the industry’s value to the UK economy.
The auditor’s study also showed that the retail betting industry alone generates £700m in taxes each year, £700m in wages paid to staff and £800m in profit before interest and tax, and will be used by Ladbrokes to lobby the government for a more forgiving tax regime for UK-based bookmakers.
Ladbrokes chief executive Christopher Bell said: “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.”
Ladbrokes moved its online sportsbook to Gibraltar in November, will Bell concluding that competing against offshore operators with significant tax advantages was “unsustainable”.
As well as detailing the economic contribution of betting in terms of both direct and indirect income, the report also highlights socio-economic considerations, such as that betting provides a relatively high number of jobs for workers with no qualifications, as well as employment in rural areas through its links with horseracing, which receives 15% of its income from the gaming sector.
Deloitte lead betting and gaming consultant Simon Oaten 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 compiled the report using government and company sources.