By Ben Kerrigan-
The UK has officially become the world’s largest online gambling market with $12.5bn in revenue , despite the shocking cost gambling addiction has on the United Kingdom’s government and society, the scale of industry in the country continues to grow.
According to data presented by SafeBettingSites.com, with total gross revenue of $12.5bn, the United Kingdom is the world’s largest regulated online gambling market with a tota gross revenue of $12.5bn
Last year, the US online gaming industry grossed an estimated $11bn, or $1.5bn less than the UK market. With total gross revenue of $6.5bn, Australia sits in a high third place with a totl gross revenue of $6.5bn, and Italy and France follow, with $4.5bn and $3.8bn in revenue, respectively.
The United Kingdom has outstripped even the United States, which has an almost five times larger population than Britain, as the largest regulated online gambling industry.
Last year, the US online gaming industry grossed around $11bn, or $1.5bn less than the UK market. With total gross revenue of $6.5bn, Australia sits in a high third place. Italy and France follow, with $4.5bn and $3.8bn in revenue, respectively.
While online gambling brings billions of dollars in revenue yearly, it also causes enormous costs to UK society.
According to a Public Health England report published in 2021, gambling incurs an estimated $198 million direct cost to the UK government due to addiction-related criminal activity. A further $173 million loss comes from the harm gambling causes to employment, education, and finances.
In terms of criminal activity, Public Health England in the September 2021 report confirmed that one of the multitude of harms caused by gambling in the UK is an estimated £163 million in costs to the government due to criminal activity related to the addiction.
This jaw-dropping figure will likely continue rising as the entire European online gaming industry, including the UK as the leading market, is expected to grow by 8% year-over-year and hit a $42.2bn value in 2023.
An analysis of the direct costs to the government which includes the negative mental and physical health effects of gambling, far outweigh the costs related to crime. When accounting for the intangible costs felt across the country, the total invoice for society comes to an annual sum of £961 million.
Once the effects on employment and education as well as financial costs (related chiefly to homelessness), are incorporated into the analysis, the total cost of harms associated with gambling is £1.3 billion every year.
Online casinos and sports betting sites which were virtually non-existent two decades ago, today bring billions of dollars in revenue each year, the Uk benefitting significantly from its business engagements in the betting industry. The entire industry has grown rapidly because online gambling is accessible and relatively easy to start.
It offers a much wider range of games and betting options than most brick-and-mortar casinos.
Gambling Regulation
The United Kingdom has been at the forefront of regulating online gambling, with the UK Gambling Commission regulating Gambling casinos in Britain since it was set up as a result of the Gambling Act of 2005.
Italy and France follow, with $4.5bn and $3.8bn in revenue, respectively.
While online gambling brings billions of dollars in revenue yearly, it also causes enormous costs to UK society.
Recent data provided by the UK Gambling Commission (UKGC) as a result of the regulator’s quarterly telephone survey saw the proportion of British adults gambling online equal to the proportion of British adults gambling in brick-and-mortar venues – 18%. In comparison, five years earlier, the proportion of people gambling in person was almost two times bigger than the online participation rates.
Reports reveal that the maximum stakes for online gambling would range from £2 to £5, with new rules would make sure people are given the chance to place bigger bets only in case they can afford to.
Last month, the British Government announced plans to roll out maximum betting stakes to online gambling operations in an effort to tackle rising gambling addiction rates in the country.
Apart from this, British gamblers may also become subject to special financial checks, including credit and affluence checks, although the Government is still set to consult on the details of this reform.
Lawmakers are also willing to introduce measures aimed at protecting underage individuals from gambling online. An independent ombudsman figure is set to be established to deal with disputes within the sector. It has not been established precisely when new relevant laws will be brought in an enforced.
According to reports of the UKGC, the age group most likely to take part in online gambling services is the age group of 25 to 30-year-olds. Currently, approximately 2.2 million people are either categorised as problem gamblers or are at risk of developing gambling addiction.
The Uk Gambling Commission was contacted for comment.
Incidentally, despite the huge revenues into the country from gambling, the Gambling Commission’s press office telephone is not working at all.
Insiders at the Gambling Commission told The Eye Of Media.com that there is a technical problem with their press office telephone number and that one of their representatives would be in touch. Three hours later, there has still been no response.