Executive Summary
In 2000, net expenditure (that is, gross stakes less winnings) on betting and gaming in the UK totalled £7.17bn. This represented an increase of 4.2% on the figure for the previous year, the market having been virtually static between 1998 and 1999.
The sectors covered in this report are gaming machines, bookmaking, lotteries, casinos, licensed bingo and football pools. Some of these sectors fared better than others in 2000/2001. The amount staked on football pools, for example, continues to decline, and even revenue from the National Lottery is falling.
The launch of the National Lottery in 1994 has, however, done much to alter the nation's perception of betting and gaming. Gambling in general has become more socially acceptable, and it is now considered that a complete overhaul of the UK's archaic betting legislation is required.
If the recommendations of the Gambling Review Body, published in July 2001, are implemented, they will revolutionise the industry. Gaming will become much more accessible. In particular, a proposal to do away with the 24-hour wait between joining a casino and playing in it will allow people to gamble on impulse. A `punter' will be able to walk in off the street and win — or, indeed, lose — a fortune in minutes.
Not surprisingly, those that are involved in treating problem gambling are concerned. Even the Chairman of the Gambling Review Body has admitted that the proposed reforms would probably cause an increase in gambling addiction. It is to be hoped that a balance can be struck, so that the industry does not suffer from a backlash against deregulation, as was seen in Australia.
Any changes to legislation will take some time to come into effect, but the industry has a renewed optimism and it will be keen to invest to make the most of the UK's potential role as the gambling centre of Europe. The 2001 Budget has already made a fundamental difference to the bookmaking sector by replacing the tax on punters with a tax on bookmakers' profits. Bookmakers are delighted that the burden of tax has shifted to them, as experience has shown that a similar reform in the Republic of Ireland resulted in a 25% increase in turnover.
Another factor that is transforming the industry is the advance of technology. `Armchair betting' — participating in gaming via interactive TV, the Internet and WAP (Wireless Application Protocol) telephones — will be spontaneous and, most importantly, will reach a whole new type of customer who would never have dreamt of entering a casino or a betting shop.
The betting and gaming industry is on the brink of transformation. Its operators feel that, at last, they may be able to compete fairly with the National Lottery and overseas companies. Camelot has objected to the suggested reforms on the grounds that less money will be available for good causes, but these objections have been dismissed as `whingeing' as the rest of the UK's betting and gaming industry prepares itself for change.
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