Gambling Industry is Waiting for Government Decisions to Determine its Fate
The gambling industry is taking a hit right now as the UK continues to tighten regulations. It seems that the nation is heading in a direction that could potentially ruin the gambling industry as we know it.
The UK government has still left their decision regarding stakes on FOBTs unannounced, but the newspapers and other media are trying to keep readers on the topic. They are touching on subjects such as the FOBTs perceived failings, the volume of television adverts put on by the gambling industry, and more.
Newspapers have called FOBTs “outrageous rackets,” among other names, apparently taking a position on the matter. However, Time mentioned that the gambling industry had spent more money on television adverts than they ever have, reaching a massive £1.4 billion since the year 2012. Because of this, Time also said that children are watching more gambling commercials.
Overall, the gambling industry has splurged on marketing techniques since 2012. Spending on all forms of advertising has increased 63 percent since the year of 2012, reaching £312 million. This year’s expenditures on television ads rose 43 percent to reach £150 million. Since 2012, online casinos alone have increased spending by 97 percent.
One of the regulations on gambling ads was a cutoff point at 9 pm. No gambling adverts are allowed to run past 9:00 at night unless it is during a live sporting event. A study by Nielson, however, discovered that most kids on the brink of turning 12 begin watching television around 9 pm.
As newspapers increase their coverage on the gambling industry, it seems that more citizens, as well as government officials, are wanting to crack down and give the industry harsher regulations. Everyone in the UK is now paying closer attention to everything that happens in the industry.
In a not to his clients, Mr. Simon French, an analyst at Cenkos Securities said, “It is fair to say the gambling industry has lost the PR war and that is due to a lack of joined-up thinking by the different sectors, be it land-based and online or betting, casinos and bingo.”
Mr. French continued to say. “We believe the Treasury, at the very least, looks at gambling tax revenues as an overall pot rather than by product lines,” said French. “Therefore any fall in one-part of the industry is likely to be counter-balanced by increases in the other, notably land-based casinos and online; this is before a wider debate about welfare costs associated with problem gambling, etc.”
So, the government of the UK will most likely announce decisions about the fate of the gaming industry within the next couple of months, and citizens, as well as industry professionals alike, will be eager to hear the announcement.