Could London Become the Online Betting Capital of Europe? 

London has always been a hub of tech and innovation. Now, it is poised to become a hotspot for the online gambling industry. We discuss how and why in the article below. 

In the last few years, London has seen its seat as a hub of business and innovation wane a little. Many of its tech and finance companies set sail for Ireland after its departure from Europe. Barclays, TD Security, Equilend, and a host of others vacated the capital, leaving a gulf. Yet that is slowly being repopulated, and innovative iGaming solutions are one industry making it home. 

London as a Hub for iGaming 

There are lots of different reasons these companies are choosing the United Kingdom and London in particular as a start-up hub. Few cities have the infrastructure London does, with an extensive rail network that can allow even those in the towns outside the city into the center in thirty minutes. 

The regulatory landscape of the United Kingdom is also extremely favorable. Its UK Gambling Commission is extremely influential, being one of the authorities that many trustworthy online casinos and betting sites adhere to. Their advice ensures fair and transparent gaming for players and operators in the country. 

The city also has a great skills market. It has a number of universities and is one of the world's great capital cities. This means everyone wants to come and work there, and those already calling it home provide a great talent base for employers. Not only that, but as a tech hub, it is easy to find investors for startups and businesses. 

The Success of Betway 

Betway is one homegrown success story. Starting in 2006, it has seen the highs and lows of the online gambling industry in the UK, being at the forefront of innovation and weathering many of the storms. It has also been a part of many of the United Kingdom’s changes in policies and regulations, including the dissolution of VIP platforms and managerial job and player transfer betting for football. 

The company now holds licenses across Europe, the United States, and Central and South America. One of its most famous products is the Betway Casino, which provides both casino gaming and sportsbook services. In 2015, it hit the headlines by paying out €17,879,645 for an online slot win. At the time, this was the largest on record and was on the Mega Moolah slot. It was entered in the Guinness Book of Records until it was beaten in 2019. 

Online Betting Growth in the UK 

Gaming revenue in the United Kingdom has been rising for some time, and the last few quarters of this year have proven no different. The United Kingdom Gambling Commission announced that revenue had increased more than 10% year on year. This figure included numbers for both online betting and betting in physical casinos and bookmakers. 

Online bets and active accounts had also increased. However, some of this data may have been changed due to a reclassification of products. This will particularly have impacted revenue from online slots, which was marked as increasing by around 15%. This will not impact the overall total. 

Of this total, a whopping 80% is attributed to the online gambling sector. While total revenues had increased 11% over the same period last year, it was down on the £1.46 billion figure for Q1 release in August. This may have been due to a year of major sporting events in the country, including the Olympics and European Football Championships. 

The Gambling Tax Rate Remains Static 

Another positive sign for the gaming sector was that in the recent UK budget, the first since the introduction of a new government, the tax rate for online gaming remained static. Proposals had been made to increase remote gaming duty. This would have raised an extra £900 million per annum, according to some estimates. It was proposed by the Social Market Foundation think tank. 

The UK has a very favorable rate for gambling taxation, also making it attractive to new businesses and startups in the sector. It currently stands at 21% for online gaming. This places it below most European countries, along with Australia, the US, and Canada. Several major US gambling companies moved operations here last year, and it is no surprise with these favorable rates. Derek Webb, a former inventor of casino games, also backed the rise in taxes. He is one of the parties major donors and also donates to the Social Market Foundation. However, this does by no means signal that the government will change this in further budgets. 

By leaving tax rates as they are, it is obvious the government hopes to attract investment in the sector. With London currently undergoing a renaisance as a tech capital, it may soon be one of the gambling meccas, much like Malta has become. This can only be a boost to the United Kingdom's economy and will prove that homegrown companies like Betway have what it takes to operate on global markets.