DCMS: UK Gambling hit by £1bn COVID-19 deficit

DCMS Select Committee to investigate UK gambling regulation
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DCMS has released revised economic estimates for the UK Gambling sector, revealing the effects of the COVID-19 pandemic on the industry’s contribution and productivity.

The latest data tracks key sectors, including gambling, from 2011 to 2021. DCMS reports on sectors like Civil Society, Creative Industries, Digital, Gambling, Sport, and Telecoms. These reports focus on Gross Value Added (GVA), employment, earnings, and productivity.

DCMS highlights challenges in collecting accurate data for some sectors, such as Civil Society and Tourism, which are measured separately. The GVA for DCMS sectors (excluding Civil Society and Tourism) in 2020 hit £179.6bn, marking a 9.7% decline from 2019 due to the pandemic.

In 2019, the gambling sector’s GVA was £8.9bn. Between 2011 and 2019, the sector saw a 25% growth rate, outpacing the overall UK economy’s growth of 15.9%. However, in 2020, the pandemic drove GVA down to £7.7bn, reflecting a £1bn decline, largely due to gambling venue closures, work-from-home adjustments, and the cancellation of sporting events.

The sector’s employment was also hit. In 2020, 100,000 jobs were filled, representing a 19% decline since 2011. Factors influencing this drop included increased automation and the shift to online gambling, which typically requires less staff.

Despite the challenges, the sector was recognised for providing fair employment opportunities. In 2020, 45% of jobs were held by individuals from less advantaged socio-economic backgrounds. Employment in the gambling sector is heavily concentrated in regions like the East of England and the West Midlands, with most jobs in large gambling firms and betting shops.

On the productivity front, 2019 data showed that the sector had an output of £89,200 per filled job, much higher than the UK average of £58,100 and the DCMS average of £64,200. This made the gambling sector the third most productive under DCMS.

The report concludes that while land-based gambling productivity suffered during the pandemic, the growth of online gambling helped maintain overall productivity. The industry’s shift to online services played a crucial role in mitigating the economic impact of the pandemic.