New loan announcement
The UK’s Betting and Gaming Council (BGC) has welcomed the government’s bailout plan to help struggling businesses as the coronavirus pandemic takes hold. The Chancellor of the Exchequer, Rishi Sunak, announced a loan package worth ￡330bn ($394.92bn), which equates to 15% of the value of the nation’s GDP.
BGC requested help in saving thousands of jobs across the industry
The measure came just hours after the council called on the UK government to send financial aid to the sector. The BGC requested help in saving thousands of jobs across the industry as more sporting closures in both horse racing and soccer were announced.
It is hoped that loans and a break in business rates and mortgage payments will help all those firms affected to recover.
An economic emergency
The Betting and Gaming Council said the COVID-19 pandemic had placed “unprecedented financial pressure on employers.” This seems to be something that the UK government has recognized. While unveiling the new measures, Sunak was quick to emphasize the fact that the bailout was an economic emergency. He said,
Never in peacetime have we faced an economic fight like this one.”
The chancellor also promised that if this package was not enough, he would be prepared to invest more money in British businesses. “I said whatever it takes, and I meant it,” he added.
Does the move go far enough?
While the government’s move to support UK businesses is welcome news, the BGC is yet to decide on whether it will go far enough for struggling gambling firms in the country.
Previously, the council called for help with employment costs and additional time to pay duties and corporation tax. These measures, alongside business rates relief, will give much-needed breathing space to a limping industry.
Event cancellations, together with the closure of betting shops, could wipe out tens of millions of pounds per month. The BGC revealed it is already seeing consumer drops of around 90% in casinos and 60% in betting shops. This will be compounded without premium races such as the Grand National.
Comparisons across the pond
The challenges of the gambling industry in Britain is also being replicated across other countries, with gaming hotspots such as Macau and Las Vegas closing casino doors.
The American Gaming Association (AGA) has already called on politicians to urgently provide financial stimulus to the country’s casinos. Bill Miller, the AGA’s CEO, said, “In a matter of days, the U.S. casino industry went from a growing, thriving segment of the U.S. economy to a near standstill.”
With share prices on a downward curve, U.S. President Donald Trump may have to announce a raft of similar measures to keep the gambling sector in America afloat.