How Online Casinos Impact the Economy and Employment

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How Online Casinos Impact the Economy and Employment

The UK has one of the world’s largest online casino markets. Keep reading to learn more about how online casinos impact the economy and employment.

The Online Casino Market Development

Data Description
15 million people gamble online UK residents
61% of total GGY in 2021/22 Online wagering accounted for in 2021/22.
£6.4 billion GGY from 2,419 iGaming operators Registered iGaming operators generated amounts
£3.9 billion GGY from iGaming sites, £3.0 billion from online slots iGaming sites contributed £3.9 billion GGY, with £3.0 billion coming from online slots.
19% corporation tax in 2021/22 Large companies in the UK market paid standard corporation tax.
Approximately £3.1 billion Tax receipts from the gambling industry
10,000 direct employment opportunities The online gaming industry employment opportunities.
Additional 15,000 online casino jobs expected The online gaming industry is expected to create an additional jobs in the next 5 years.
£1,019 million GVA Malta’s online gambling sector contributed £1,019 million to the Gross Value Added (GVA).
10,685 full-time jobs, 9,919 online gambling jobs Malta’s online gambling sector supported 10,685 full-time jobs and 9,919 jobs in the online gambling industry.

The factors that impacted the shift towards online gaming are the widespread presence of mobile phones and the availability of internet connection almost anywhere.

So, the advancement of technology has directly enabled the rapid growth of the iGaming industry.

According to the Participation Survey 2021/22, 15 million people in the UK participate in online gambling, driving the growth of the online casino market.

These unprecedented numbers equal the hordes of people who have visited a museum at least once in the same period. As technology advances and there are further developments in the diversity of gameplay of video slots and the ease of participating in live dealer games, we can only expect these numbers to grow.

The Economic Presence of Online Casinos

The Economic Presence of Online Casinos

The UKGC released a publication examining the economic presence of online casinos in the UK. They have noted a significant shift in the gambling industry towards online gaming platforms.

This shift is reflected in the GGY generated from online wagering during 2021/22, which rose to 61% of the total GGY.

The industry has 2,419 registered iGaming operators that have accrued £6.4 billion of GGY.

The iGaming sites contribute £3.9 billion of the total GGY, with £3.0 billion coming from online slot games.

Income Tax

All UK businesses are subject to the corporation tax on income and capital profits. The tax is subtracted from all employee’s wages or the company’s earnings and paid to the UK government. All large companies in the UK market pay 19% of corporation tax, which will increase to 25% starting April 2023. For 2021/22, the gambling industry tax receipts reached about £3.1 billion.

Two-thirds of the income tax funds the NHS, public schools and the state pension system.

So, the money paid by betting companies in the form of tax revenue returns to the public via different channels. Legitimate top online casinos must pay revenue income tax.

Community Development

One way to promote a brand is by organising corporate social responsibility events to help the local community.

CSR programmes are essential to the online gaming industry as they provide a way to polish the image of gambling companies.

Online casinos suffer from a negative public image as they are often associated with addiction and crime, so operators are trying to brush it up by organising charity tourneys, fundraising events and presenting direct donations.

Health Games is a donations programme of the Health Lottery online platform. They match 20% of the initial deposit of every new player and donate it to local charities that support mental and physical health problems.

Employment Opportunities Creation

The online gaming industry in the UK has created about 10,000 direct employment opportunities so far, according to the BGC.

It may seem like a little, but it doesn’t reflect the total number of people linked to the industry in various capacities. You can even work as a casino expert and write trustworthy online casino reviews.

An iGaming website engages software programmers, mobile app developers, UX specialists, graphic designers, coders and security experts to develop the games.

Online casinos suffer from a negative public image as they are often associated with addiction and crime, so operators are trying to brush it up by organising charity tourneys, fundraising events and presenting direct donations.

The UK iGaming sector is expected to create additional 15,000 online casino jobs in the next 5 years. The majority of these will require a high-skilled workforce that will work to provide safer gaming spaces.

Online Casinos Jobs

Online Casinos Jobs

Online gaming platforms require employees just like any other business, creating employment opportunities.

Many people are involved in the site’s daily operations, enabling things to run smoothly and keeping the punters satisfied with the experience.

Online casinos need high-skilled workers to deal with the security of the site and programmers that can develop new games.

Also, some positions can only be filled with individuals licensed to work in the gambling industry by a state regulatory body.

As a rule of thumb, all live dealers should be able to stay calm and composed when dealing with problematic customers.

And customer support reps should be trained on how to communicate effectively with customers and be polite at all times.

Online Casino Dealer

If the operator offers live casino games, they also need online casino dealers to be in charge of the table and communicate clearly with players.

The dealers ensure everyone follows the game’s rules, determine the victors of the games and maintain a polite atmosphere among players.

Casino dealers also need to have solid mathematical skills and manual dexterity to operate the roulette, cast the dice or deal the cards.

The average salary for a casino dealer in the UK is £24,466.

Online Croupier

Croupier and dealer are often used interchangeably as they both refer to casino workers appointed at a live casino table. However, there are specific differences between them.

Online croupier refers to a person operating a roulette wheel and sometimes a person in charge of a baccarat table. Regarding blackjack and poker games, the people in charge of the table are called dealers.

The word dealer seems more often used as it is simpler and covers all the workers on a live casino floor.

Casino Programmer

A casino programmer develops video and mechanical slot machines for slot sites. It’s a creative job as they need to cooperate with artists to design a new world that players will find interesting and engaging. Programmers also need to be very careful when creating the game to not leave any margin for errors that players can use.

A degree in Software Engineering or Computer Science is required for this position.

A great advantage is having experience in the gaming industry, whether it’s specifically casino or not. The average software developer’s salary in the UK is £53,098.

Casino UX Specialist

UX specialists play a significant role in developing an online casino as they ensure players find the games interesting and user-friendly.

They do tests, research, and cooperate with programmers to create intuitive games. A college degree is required for this position, preferably in graphic design or web development, but the top desirable skill is to have experience in online gaming and software development.

The average salary for a senior UX specialist in London is between £64,000 – £96,000.

Casino Customer Support

Casino customer support representatives assist players with issues with their account or the platform and provide product guidance. They must have excellent communication skills and stay calm under pressure.

A high school diploma is required for this position, and candidates go through an initial on-site training course.

A college degree is required for this position, preferably in graphic design or web development, but the top desirable skill is to have experience in online gaming and software development.

The average annual salary is £22,339.

Areas with Many Online Casino Employees

Besides the famous Monte Carlo, Malta is another European haven for online gaming companies.

Many UK iGaming operators are based in Malta and regulated by the UKGC and the Malta Gaming Authority. Malta offers competitive tax rates of 5%, attracting the biggest names in the iGaming industry.

It has generated £1,019 million of Gross Value Added during 2021, about 7,7% of its GDP. Including the links to other sectors, it rises to 9,9%, and we are yet to see the stats for 2022.

The industry provides 10,685 full-time jobs and 9,919 in the online gambling sector.

When you calculate the additional jobs it generates, the number of employees in the gambling industry rises to 14,950, about 5,4% of the workforce.

References