Gaming has firmly established itself as a cornerstone of the UK’s entertainment landscape, dominating the sector with a staggering 42.1% share of total entertainment revenues in 2022.
According to ERA Figures, games are played in 7 out of 10 households. The success story of the UK games development and digital publishing sector has been further propelled by initiatives like Games Tax Relief in 2014.
In parallel, the rapidly expanding iGaming industry is redefining the online gambling experience, with the UK market boasting remarkable figures and poised for remarkable growth.
Although some might think gaming and iGaming are the same, iGaming encompasses a more specific niche. The term “iGaming” refers to the entire spectrum of online gambling and betting, including sports and esports competitions, poker, and roulette.
In the UK, the online gambling market has exhibited remarkable growth, reaching £5.9 billion in 2022. Industry experts predict an even more impressive trajectory, forecasting a 5.4% growth rate by 2028 that could elevate the market to an impressive £8.37 billion. This surge is fueled by emerging technologies like blockchain and innovative platforms that continuously enhance the online gaming experience.
Economic implications
The iGaming industry is not only shaping the entertainment landscape but also significantly impacting the economy. Predictions of generating 15,000 high-paying tech jobs over the next five years underscore its potential as a driver of economic growth.
These positions emphasise advanced skills and professional development, paving the way for substantial investments in training programs. Currently, the industry already supports a substantial 119,000 jobs in the UK, showcasing its role as a major contributor to employment.
The fiscal contributions are equally remarkable. For instance, the UK Betting and Gaming Council recently revealed that its members provided £455 million to British horseracing in 2022 through contributions in levies, media rights, and sponsorships. Furthermore, bookmakers allocated £125 million for marketing efforts, including advertisements and partnerships, aiding the promotion of racing and betting while enhancing coverage and revenue for media outlets.
The Office for Budget Responsibility anticipates a significant rise in betting and gaming duties, projecting a staggering £3.5 billion in revenue for 2023-24, a notable increase from the £1.62 billion recorded in 2022-23. This surge in tax revenue further underscores the industry’s substantial impact on the UK economy.
Technological advancement
As gaming continues to dominate the entertainment sector, the iGaming industry is carving its own impressive niche, driven by technological advancements and innovation. Take live table games and cryptocurrency payment methods, for instance.
Live table casino games have transformed the online gambling landscape, offering players an immersive and interactive experience akin to visiting a physical casino. These games are streamed in real-time from studios or actual casinos, allowing players to engage with professional dealers and other participants.
Another fascinating development in the iGaming industry is the integration of cryptocurrencies like Bitcoin into online casinos. Bitcoin casinos have gained popularity for their ability to provide secure, anonymous, and efficient transactions, particularly appealing to players who value privacy and decentralisation.
Blockchain technology ensures transparency and fairness in these casinos. Transactions are swift and borderless, eliminating the need for traditional banking methods and reducing processing times.
