UK: Betting Shops Gain Relief
The Betting and Gaming Council (BGC), UK's gambling regulator, has penned a letter to the UK's Finance Minister Rishi Sunak, requesting tax relief for betting shops. In the letter, the authority urges the finance minister to financially aid the local sports betting market, which is still grappling with the economic consequences of the Coronavirus pandemic. To support individual companies, BGC has presented a five-point plan.
Reviving a £7.7 Billion Sector
The BGC is the oversight body of the UK's gambling industry. While dealing with the oppressive measures of the government during the pandemic, BGC has been trying to maintain the economic stability of individual industry players.
After the recent announcement by British Prime Minister Boris Johnson about the gradual easing of Coronavirus restrictions, the BGC is taking further steps. It has now appealed to Finance Minister Rishi Sunak, requesting fiscal assistance for bookmakers and betting shops. This move would help the British sports betting market recover from the financial woes caused by the pandemic.
To facilitate a systematic and orderly handling of the financial aid, Michael Dugher, the BGC's CEO, has shared a five-point plan in his open letter. He also emphasized the economic significance of the gambling sector. With over 100,000 jobs at stake and a tax contribution of £4.5 billion, the industry is a critical component of the UK economy. Additionally, it generates a turnover of £7.7 billion throughout Europe.
The BGC believes that if the UK government takes steps to help the industry weather the pandemic, it can continue to play a vital role in the country's economy. Therefore, Michael Dugher has urged the finance minister to prolong the existing tax relief measures for another year.
"The gambling industry is a vital cog in the British economy. We hope that the government is cognizant of this fact and will extend tax relief for our industry in the forthcoming budget. Only then will companies be able to emerge stronger from the pandemic, regain economic growth, and create new jobs. Since betting shops and bookmakers' establishments have been closed for a long time, extended tax relief will assist in preserving jobs and relief financial pressure on the companies."– Michael Dugher, CEO of the "Betting and Gaming Council", Press Release from the BGC
As per the current plan, the UK government, under Prime Minister Boris Johnson, aims to reopen the betting sector for sports betting from April 12th. The BGC has emphasized the need to adhere to this schedule. At the same time, the gambling authority has criticized the 10 pm curfew, which has had a significant impact on the operations of bookmakers and betting shops.
In its last fiscal year, the British sports betting sector faced a decline in gross revenue amounting to £1.7 billion. In an effort to revive the market, the BGC is demanding stability and security. Hiking taxes and fees could hinder this healing process. On the brighter side, many gamblers switched from land-based gambling to online gambling due to COVID-19 restrictions, thereby contributing to higher revenues. However, the overall turnover has witnessed a drop.
Racing under threat. The British racing industry heavily depends on the gambling sector. As a result, the BGC's CEO, Michael Dugher, warns that the pandemic poses a "serious financial challenge" to the racing industry. To ensure that the sports betting market has a positive impact on British racing, future regulations must support it.
German Sports Betting Market
In contrast to the proposed lifting of COVID-19 restrictions in the UK, no significant changes have been seen in Germany so far. Casinos and gaming halls remain shut down. However, bookmakers and betting shops are allowed to operate, albeit with guidelines. Customers are only permitted entry for placing bets. Strategically staying at the betting shop longer or watching live sports within these establishments is prohibited. Moreover, the regulations differ by state, as they fall under the jurisdiction of individual federal states. It remains unclear when the German government will decide to reopen the gambling sector.
Unlike in Britain, where betting shops are set to reopen, Germany's gambling sector is still in a state of limbo, with no clear plan in sight. Bookmakers and betting shops can legally operate, but with restrictions. Consumers can enter these establishments only to place bets. Longer stays or watching live sports within the premises are forbidden. The regulations also differ between states, as they fall under the authority of individual federal states. The government's decision regarding the future of the gambling sector remains uncertain.
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