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Research Says UK Gambling Changes Pose Small Economic Risk

Gambling

Highlights 

  • The latest report suggests that gambling reform will have a minor economic impact.

  • The deputy director of NIESR clarifies that there is no real threat to the economy.

The National Institute of Economic and Social Research (NIESR) and the University of Glasgow, with their combined analysis, have found that the new gambling reforms will have only a marginal impact on the country’s economy. 

Previously, according to the 2023 white paper, there was supposed to be a decline of £329 million – £812 million in the gross gambling yield (GGY). The focus was more on the online gambling software sector.

The NIESR-Glasgow research team has set £812 million as the upper limit of the economic loss that is bound to happen.

The three main aspects of this research are: 
  1. Survey of regular gamblers
  2. Stated-Preference Discrete Choice Experiment (SPDCE)
  3. Input-Output (IO) economic modelling
These analyses did not measure the impact on potential health, well-being, productivity, and improvements from reduced gambling harm. All of this could further tilt the scales towards better economic outcomes.

New research indicates that only £134 million, which is just 16% of the gross £812 million, will be lost, after accounting for consumer spending habits. 

The spending was mostly diverted towards the consumption of essentials. It covers food, drink, everyday shopping, home, and personal items, and more.  

Suppose players enter the black gambling market, then there could even be a higher loss. Say, at 8% allocation, can result in a loss of £189 million (23% of the gross loss), while a 27% allocation drives it to £317 million (39% of gross).

There were also analyses made on behavioural insights. UK-facing charity GamCare has reported that approximately 2,000 people in the UK sought financial guidance for gambling harm in 2025. 

Adrian Pabst, deputy director of the National Institute of Economic and Social Research, has clarified that there is no threat to the economy. 

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