UK Gambling GVA at ï¿¡7.05 Billion
The UK’s gambling industry has generated an estimated ï¿¡7.05 billion in Gross Value Added according to new figures released by the government. The DCMS has just published its Economic Estimate report offering data on sectors covered by the department. The report comes in the wake of Prime Minister Rishi Sunak’s recent cabinet reshuffle and growing frustration at the unpublished Gambling Act Review.
Estimated monthly GVA generated by the gambling industry stood at ï¿¡81 million.
?Andrea Piacquadio/Pexels
Total GVA at ï¿¡161 Billion
The DCMS has released its newly updated Economic Estimate report detailing the amount of Gross Value Added a range of industries have generated in the UK over the last year through goods and services. The estimates are based on monthly data adjusted for inflation. This means that the figures can be used to calculate growth and proportion in the UK economy.
Research on DCMS sectors was compiled by the Office for National Statistics. The report includes all sectors overseen by the department except for Tourism. Figures for the Digital Sector and Telecoms have been presented in a separate document, as the department has handed over responsibility for these areas to the new Department for Science, Innovation and Technology.
The updated estimates for the year to December 2022 show that all sectors under the department’s remit, excluding digital and tourism, generated a total GVA of ï¿¡161 billion. Gambling was found to be the department’s lowest contributor, generating a yearly GVA of ï¿¡7.05 billion.
This was below the Culture sector’s ï¿¡32 billion and Sports and Civil Society’s ï¿¡16 billion GVA each. Creative Industries is the largest group of sub-sectors, encompassing film and TV, publishing, advertising, design and crafts. It provided the biggest annual GVA contribution of ï¿¡120 billion.
The report also included a detailed breakdown on estimated monthly GVA generated. This is presented in the form of ‘chained volume measures’ on jobs, imports and exports, earnings, and related businesses. The UK’s gambling sector was responsible for the department’s lowest monthly average of ï¿¡81 million for the year to December 2022.
This figure was significantly lower than all other average monthly contributions by DCMS sectors. Creative Services’ average monthly contribution was ï¿¡113 million higher, while Civil Society’s was ï¿¡104 million higher. The Culture sector’s monthly contribution stood at ï¿¡101 million more than that of gambling, and Sports’ figure was ï¿¡98 million higher.
New Culture Secretary
In its report, the department noted that it hadn’t factored in any individual sub-sectors linked with betting and gaming. In contrast, other industries included breakdowns of GVA contributions by classified sub-sectors. It also stressed that GVA estimates are based on incomplete information and should only be used to illustrate general trends.
The Economic Estimate report comes in the wake of Prime Minister Rishi Sunak’s latest round of government restructuring. The DCMS has been affected by the changes, as its digital brief has been handed over to the new Department for Science, Innovation and Technology.
Former Culture Secretary Michelle Donelan has been brought in to lead the new department, which will focus on attracting tech firms to the UK. She will also continue to work on the controversial Online Safety Bill, which seeks to prevent the proliferation of harmful content on the internet.
The SIT is one of three new departments designed to help the government deliver on its economic promises. Other new departments include Business and Trade, Energy Security and Net Zero, and the refocused CMS. The creation of the new departments has seen a cabinet shake-up, although no changes have been made to junior roles.
MP for South East Cambridgeshire Lucy Frazer has been appointed as Secretary of State for Culture, Media and Sport. She will lead the department, which aims to fortify the UK’s position as a world leader in the creative arts. Frazer is the latest minister to join the department, which has been subject to significant disruption over recent years.
Frazer is the ninth Culture Secretary to hold the role since 2016. It appears that gambling minister Paul Scully will retain his position, overseeing the continuing Gambling Act review. Scully was appointed to the role in October 2022, and is the fifth minister to oversee the review.
Patience Wearing Thin
The DCMS is facing increasing pressure to publish the results of its gambling review, which has suffered a series of delays. Before Sunak’s recent cabinet reshuffle, the department had pledged to release the white paper this month. However, as the end of the month rapidly approaches, it appears that new legislation has been delayed once more.
The Betting and Gaming Council, which represents 90% of the UK’s casinos, bookmakers and online operators, urged the new Culture Secretary to deliver the gambling white paper without delay. Speaking on behalf of the industry body, CEO Andrew Dugher explained the importance of balanced reforms that do not impinge on those that gamble responsibly. Dugher stated:
“We hope the new Secretary of State will listen to racing and to the millions of punters who are concerned about blanket, intrusive, low level ‘affordability’ checks driving people to the unsafe unregulated black market online. We also hope that as a sector supporting jobs and investment in the UK, recovering from the pandemic and facing tough economic headwinds, she will reject calls for any new taxes on the industry.”
The British Amusement Catering Trade Association joined those calls to deliver the reforms. CEO John White wrote to the new Culture Secretary expressing his growing frustrations at the government’s lack of transparency. According to White, industry stakeholders and campaigners are starting to lose patience over the delays.
The review was said to be at its final stages mid-2022, when former gambling minister Chris Philp resigned. He said that he had handed the review in to No. 10 for its final approval by then-Prime Minister Boris Johnson. However, in a year that has seen no less than three Prime Ministers in the UK, few are surprised that the review appears to have been put on the backburner once again.
