Reported Cost Of COVID To The UK Gambling Sector
Reported Cost Of COVID To The UK Gambling Sector
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The COVID-19 pandemic has wreaked havoc on economies worldwide, and the UK’s gambling industry has been no exception. As the Department for Digital, Culture, Media & Sport (DCMS) has revealed, the pandemic resulted in a staggering £1 billion decline in the economic output of the sector.
The DCMS is responsible for reporting on the economic contribution and productivity of several key sectors in the UK, including the gambling industry. By analyzing data from 2011 to 2021, the department has been able to paint a comprehensive picture of the industry’s performance over the past decade.
The DCMS uses several key metrics to gauge the economic impact of the gambling industry, such as Gross Value Added (GVA) output, employment, earnings, and productivity. These measures provide an understanding of the sector’s overall economic contribution.
Prior to the COVID-19 outbreak, the UK gambling industry was experiencing a period of growth, with a 25% increase in GVA between 2011 and 2019. This outpaced the overall UK economy’s growth of 15.9% during the same period.
The COVID-19 pandemic, however, has dealt a severe blow to the gambling industry, mirroring the wider impact on DCMS sectors. The industry’s GVA declined from £8.9 billion in 2019 to £7.7 billion in 2020.
Several factors contributed to this significant decline, including the closure of gambling venues, the shift to remote work, and the cancellation of sporting events – all of which are integral to the industry’s operations.
The pandemic’s impact on the gambling industry’s employment landscape has been equally profound. In 2020, the sector reported 100,000 jobs filled, a 19% decline from 2011 levels. This can be attributed to increased automation and the shift towards online gambling, which generally requires fewer workers compared to traditional land-based operations.
Despite the overall decline, the gambling sector’s productivity remained relatively resilient. In 2019, the industry’s output per filled job stood at £89,200, significantly higher than the UK average of £58,100 and the DCMS sector average of £64,200, making it the third-most productive sector within the DCMS portfolio.
