What Does the Future of the UK Gambling Industry Look Like?

_{Panelists speaking to journalist John Pienaar at the BGC AGM (Image: BGC)}

A Panel Discussion on the Future of the UK Casino and Gambling Industry took place in London on Friday, Feb 28 as part of the AGM of the Betting and Gaming Council.

The moderator was journalist John Pienaar, and the panellists were Simon Thomas, Hippodrome Casino, Greg Knight, Managing Director, JenningsBet, Joanne Moran, Retail Director at Entain and David Williams Director of Corporate Affairs and Investor Relations at The Rank Group plc.

John Pienaar began the discussion on the important role of the land based casino and online casino and gambling industry in the UK economy, especially in light of the current cost of living crisis. He asked the panel how their sectors contribute to economic growth.

Simon Thomas of the Hippodrome Casino in London began by saying: “When we talk about economic growth, it's essential to understand that simply moving money around does not inherently grow an economy. Instead, venues like the Hippodrome Casino create vibrant environments where people choose to spend their hard-earned money. Tourists flock to locations like ours for entertainment and experience, contributing significantly to London's economy.

Beyond tourism, we anticipate that upcoming regulatory changes, especially in rate deregulation, will unlock around £300 million in inward investment into the UK. This kind of investment is crucial as it fuels not only the casino sector but also the wider economy through job creation and community engagement.

Joanne Moran said that from a betting shop perspective, she wanted to highlight their role as significant taxpayers. She said: “With over 2,300 shops across the UK, operating under Entain, we employ around 40,000 people. Our locations serve as community hubs, providing social interaction that enhances well-being. It’s about more than just placing bets; we’re giving people a place to connect, which is vital, especially in challenging times.

“Moreover, last year we raised over £700,000 for charities, including Cancer Research UK and Prostate Cancer, showcasing our commitment to social responsibility. We strive to create a positive impact in our communities while also contributing economically.”

Greg Knight said that successful investments are about substantial contributions, like the recent opening of a new betting shop that had been vacant for years. Gregg said: “We invested significantly in renovations, employing local contractors, creating jobs, and paying business rates. Every job created is a direct contribution to local economies.

However, I must stress that growth must be a two-way street. Businesses like mine face increasing regulations and tax burdens. If we are pressed too hard, it risks stifling growth, which ultimately affects job creation and community support.

David Williams said that he appreciated the comments and said that his sector is unique in the hospitality landscape, primarily because they lack mechanisms to pass costs onto consumers like other businesses do. He said: “Our growth relies heavily on a favourable regulatory environment.

“The pandemic taught us that people value social interaction. They want to leave their homes and engage with others in vibrant environments. This presents an excellent opportunity for us to revitalize town centres and enhance community engagement, provided we receive regulatory support to deliver high-quality experiences.”

What is Key to Attracting More Engagement?

Host John Pienaar then asked what David Williams believed is key to attracting more people to engage with the industry.

David replied: “It’s about creating an inviting, community-focused atmosphere without compromising on quality. People desire real-life experiences that digital platforms cannot replicate. If we invest correctly and listen to the needs of our customers, towns and cities will thrive. A nuanced regulatory approach is crucial; we need regulations that can accommodate the diversity of gambling environments across the UK.”

John Pienaar then asked Greg Knight what his business's role within the community. Meant for him.

Not lacking passion for the industry and the community Greg Knight said: “Community ties are vital to our identity. Many people who visit betting shops do so for social interaction. Unfortunately, some perceive our customers negatively, missing the reality that most are regular people enjoying a casual social outing.

“It’s our responsibility to highlight the positives, the majority of our customers are not at risk of harm. They use our shops as safe spaces for socializing, which reinforces our community commitment.”

Joanne Moran Retail Director at Entain agreed with Gregg and said: “Speaking of community, there’s a significant shift toward digital interactions. However, we’re seeing a resurgence in demand for in-person experiences. We need to blend technology with the community feel, offering exciting environments where patrons can socialize and enjoy their time together.

Simon Thomas also agreed with the sentiments of Gregg and Joanne and said: “Casinos have a pivotal role in the night-time economy. As traditional retail spaces struggle, the focus on experience-driven venues is increasing. We're committed to creating safe, enjoyable environments that cater to what people seek—entertainment, dining, and social engagement.”

How Important is Word of Mouth Marketing to Gambling Venues?

Next on John’s fascinating delve into the gambling industry in the UK was a question on how important word-of-mouth and marketing is for gambling establishments.

Never short of an opportunity to promote the wonderful Magic Mike show at the Hippodrome, Simon Thomas said that Word-of-mouth is their strongest marketing tool. He said: “When customers have positive experiences, they share them. Social media, particularly platforms like TikTok, has started to amplify that reach. We emphasize the ambiance and quality of our offerings, helping to shift perception and attract new customers.”

John Pienaar shifted the conversation to the regulatory landscape. He asked the panel If they could change one aspect of regulation that impacts their operations, what would it be.

David Williams was first to answer saying that he’d caution against blanket regulatory changes. He said: “Our industries are diverse; regulations should reflect that diversity. Environments vary significantly, and we must ensure that regulations protect the most vulnerable without hindering the enjoyment of the vast majority of customers who engage responsibly.”

Greg Knight said that his biggest concern is the potential ban on greyhound racing proposed in Wales. Gregg said: “This could set a dangerous precedent for the rest of the UK. Greyhound racing is integral to our industry and provides significant community engagement and revenue. Once they start banning, where does it end? We need industry solidarity to defend against these movements.”

Joanne Moran suggested that stability in regulation is crucial for her industry. He said: “We've implemented numerous measures to ensure responsible practices, but we need a stable framework to allow us to thrive and serve our communities without constant upheaval.”

Simon Thomas said that he wanted regulations that allow him to innovate and meet customer needs without excessive constraint. He said: “We should balance responsible gambling with the need to provide exciting, memorable experiences to our customers.”

What Does the Next Decade hold for the Gambling Industry?

John Pienaar then asked the panel to look ahead to the next decade and asked what their hopes and fears for the industry were.

David Williams began by saying: “I hope for a future where we see investment in growth, with more establishments opening and communities revitalized. However, I fear that indecisive regulation might stifle our progress.”

Greg Knight was optimistic and said he believed resilience will see the industry through. He said: “Despite challenges, it’s clear that people crave social interaction. If we can create welcoming, well-managed environments, our industry will remain strong.”

Joanne Moran shared Greg's optimism. She said: “We've weathered many storms, and our capacity for adaptability is our strength. With the right blend of technology and focus on community engagement, we can ensure our relevance continues in the high street fabric of our towns.”

Simon Thomas ended by saying:  The next ten years present enormous opportunities for growth. Customers desire unique experiences, and we must be ready to deliver on that demand. If we collaborate with regulators and focus on shared goals, the future is bright.”

John Pienaar concluded this fascinating journey into the struggles and successes of the gambling industry by thanking the panellists for their insights. The panel discussion on the economic contributions of their businesses, highlighted the Hippodrome's role in driving tourism and anticipating £300 million in inward investment from deregulation. The betting shop industry emphasised its community impact and charity work, raising over £700,000 for cancer charities. A new betting shop in Epping created six local jobs and contributed to local growth. Concerns about over-regulation and potential bans on greyhound racing were raised. The panel agreed on the need for nuanced regulation, stability, and technology integration to maintain relevance and attract new customers, predicting a positive outlook for the next decade with deregulation and government support.

John Pienaar ended by saying: “It’s been enlightening to hear your perspectives on the evolution of the UK gambling industry and the exciting opportunities that lie ahead as we navigate this changing landscape together.”