How might the cost of living crisis affect the UK gambling industry?
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In April 2022, inflation reached the highest level on record. It is expected to peak at almost 9% by Q4 2022. Soaring energy prices have seen domestic gas prices rise by over 94% and domestic energy up by 54%. This, coupled with increased demand for consumer goods and supply chain bottlenecks, is causing problems for households in the UK.
Gambling is down, but the government reports increased spending. The gross gambling yield for March 2022 is 10.4% down compared with February 2022. Online slot revenue showed a 14.6% increase. Online slots remain the most popular form of online gambling and entertainment. There are many new monthly games and strong market competition. It is less likely that online slots will see significant changes. online casino gaming revenue is the main reason for the fall. Cheltenham Festival saw a huge increase in promotional offers. In March, 32% of active gamblers said they would spend less on gambling in the coming months.
Cost of living crisis might affect the UK gambling industry. However, research shows that problem gambling in Iceland did not increase. In fact, it was only 1.1% of the population had problem with gambling. People who reported financial difficulties were more likely to participate in the lottery.
The gambling industry has long been considered to be recession-proof. However, the inflation is currently the highest on record and the supply chain bottlenecks and skyrocketing energy prices worsened by the war in Ukraine are creating unprecedented conditions. The rise in living costs comes at a time when the UK is undergoing a legislative gambling review.
How might the cost of living crisis affect the UK gambling industry?
