In a report that is expected to be officially presented to the UK Government by the end of the day, a reputable think-tank has revealed that the implementation of stricter gambling legislation is likely to bring additional tax revenue and be boost the country’s economy. The report comes at a time when local lawmakers have been considering a long-awaited crackdown on the gambling sector.
Although the staggering £8 billion have been contributed by gambling operators to the country’s economy in 2019, and another £4.3 billion have been received by the exchequer, the cross-party think-tank Social Market Foundation (SMF) found that if gambling spending declined by £1 billion, the UK Treasury would be able to benefit from tax revenues amounting to £171 million.
The report says that consumers would spend a larger amount of money in sectors that are considered economically productive, with the think-tank explaining that sectors such as the retail one have longer supply chains and generate larger taxes for the coffers. According to the Social Market Foundation’s study that was seen by The Financial Times, the reduction would also result in the establishment of an extra 24,000 jobs and add further gross value to the UK economy.
UK Lawmakers Still Considering Changes to 2005 Gambling Act
The negotiations associated with the establishment of further limitations for gambling operators have headed up lately, amid the UK Government’s preparations for a long-awaited review of the 2005 Gambling Act that liberalised the country’s gambling market and allowed local betting businesses to advertise their services on radio and TV channels, and also gave the green light to online betting.
However, the fitness of the gambling legislation of the UK to serve the regulation of an industry that has largely shifted online has become more fierce over the last few years. The Department for Digital, Culture, Media and Sport (DCMS) started a consultation on the review of the Gambling Act that is expected to be finalised by the end of March. Lawmakers are considering to impose further limits on TV and online advertising for gambling operators, as well as to suspend football shirt sponsorships and tackle the extent of online gambling in the country in order to protect players.
Previously, the Social Market Foundation has issued reports suggesting that local gamblers should face a spending limit of £100 on a monthly basis and mandatory checks on their financial state to prove they are able to afford the potential losses associated with gambling.
The author of the study, Scott Corfe from the SMF, said that the position of the think-tank was not associated with the full prohibition of gambling as it did not support a gambling ban, but was still concerned with the serious social and economic impact that gambling addiction has on local communities. According to the study, about 10% of the gambling industry’s revenues are generated from problem gamblers and found that approximately 300,000 people in England could be categorised as gambling addicts.
- Author
Olivia Cole
