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How Online Casinos Are Affecting The UK Gaming Industry

Online Casino

Online casinos appear to be one of the biggest buzz words in the UK gaming industry at the moment, and it is no surprise to see this grow and grow with the implementation of new technologies over the years. In 2016, the UK Gambling Commission reported that online gambling accounted for 33% of all gambling in Britain, which is a combination of online casinos, betting, betting exchanges, bingo and pool betting. It appears that online gambling is making its way up the ranks as a favourite hobby or pastime for many citizens in the UK, and is having an effect not only on the UK gaming industry, but on the economy as a whole. Here, we’re taking a look at the growth of online casinos and their how they are affecting the UK Gaming Industry.

Regulations

Once the UK Gambling Act 2005 was implemented, more provisions for the regulation of all gambling facilities including online casinos became apparent, and this led to two significant changes. Firstly, the UK Gambling Commission was formed, and secondly the UK Gambling Commission were put in charge of sharply changing the regulations of the remote gaming industry in the UK (i.e. online casinos). With many land-based betting stores having to pay additional tax after the Point Of Consumption Tax implemented in 2014 and struggling to keep up with the new regulations put in place by the Gambling Act, online casinos began to thrive, and quickly became one of the UK’s most rapidly growing markets, having a huge effect on the UK Gaming Industry. Between April 2015 and March 2016, remote gambling generated a huge £4,468.64 billion and became the biggest contributor to the UK Gaming Industry.

The Effects Of Point Of Consumption Tax

One of the biggest attractions to betting shops was the fixed odds betting terminals, but over time, these have become more troublesome than they are worth. Now, FOBTs are forced to pay tax of 25%, which will either lead operators to increase their costs, or simply close down. This has opened a new door for online casinos as, while they are still paying a 15% point of consumption tax, they are beginning to attract a whole new audience. The online gambling market is now estimated to double to almost £10 billion in the UK by 2020, and the closure and mergers of a number of land-based casinos and betting shops will only help to make this possible.

Online Resources

A reason for the growth in popularity of online casinos in particular could be due to their accessibility. With mobile technology becoming increasingly easier for people to use, no matter their age or level of knowledge, online casinos have become accessible to a larger audience than ever, from wherever they are located. In order to accompany this and help new users, a number of casino and betting operators are beginning to use their online platforms to educate new and experienced players, in order to entice them into playing these games. For example, a new player might want to watch a blackjack video guide in order to learn the basic skills before playing the game, whereas an experienced poker player may want to learn how to make the transition from the poker rooms of the casino to an online live poker table. With a growth in technology, and online resources complementing online casinos, there’s plenty of new avenues for them to explore in order to help boost their growth in the UK gaming industry.

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