COVID-19’s Impact on UK Gambling: DCMS Updates Economic Estimates

The Department for Digital, Culture, Media and Sport (DCMS) has updated its economic estimates, detailing the productivity and economic contribution of the UK's gambling sector. Covering a decade of activity from 2011 to 2021, the revised estimates offer insights into the sector's growth, challenges, and recovery.

DCMS is responsible for reporting the economic performance of key sectors, including Civil Society, Creative Industries, Cultural Sector, Digital Sector, Gambling, Sport, Telecoms, and Tourism. The economic impact is assessed using metrics such as Gross Value Added (GVA), employment, earnings, and productivity. However, DCMS cautions that data limitations exist, with sectors like Civil Society and Tourism employing separate measures for economic output.

The total GVA for all DCMS sectors, excluding Civil Society and Tourism, was £179.6 billion in 2020—a 9.7% decline from the previous year, primarily due to the COVID-19 pandemic. The gambling sector's GVA was £8.9 billion in 2019, reflecting a 25% growth from 2011 to 2019, surpassing the UK's overall economic growth of 15.9%. However, the pandemic's impact led to a decline, with 2020 GVA dropping to £7.7 billion, reflecting challenges such as venue closures, remote work, and canceled sports events.

Employment in the gambling sector also saw changes, with 100,000 jobs reported in 2020, marking a 19% decline since 2011. Factors contributing to this shift included increased automation and a move towards online gambling, which generally requires fewer workers than traditional land-based operations. Despite these challenges, the sector remained a fair employer, with 45% of jobs in 2020 filled by individuals from less advantaged socio-economic backgrounds.

Regionally, the East of England and West Midlands emerged as key hubs, hosting major gambling firms and betting shops. In terms of productivity, 2019 data showed output per filled job in the gambling sector at £89,200—higher than both the UK average of £58,100 and the DCMS sector average of £64,200, making gambling the third most productive sector within DCMS.

The report concluded:

“The COVID-19 pandemic negatively affected land-based gambling productivity, but the growth in online gambling helped to maintain the sector’s overall productivity. The sector’s ability to pivot towards online services cushioned the economic hit during the pandemic.”