UK Faces 18% Inflation that May Force Gamblers to Stop Playing

UK Faces 18% Inflation that May Force Gamblers to Stop Playing

Probably in October, the UK government is going to release its white paper on gambling reform. The industry will likely contract because of strict limits on the sums the players can spend on gambling. Plus, according to Citi, a new report shows an extremely high inflation level. This financial giant expects inflation to rise 18% by January 2023, which will be the highest index in the past 40 years.

How Inflation Will Affect UK Gamblers

A recent survey has shown that 18% of British gamblers are going to stop playing entirely in the nearest future, and 32% are going to reduce their spending.

Seven hundred players have taken part in the survey about how rising costs on gambling affected their budget after the UK consumer price index inflation rate increased to 6.2% recently. 18% of these respondents (127 people) said they would stop gambling, and 32% said they would reduce spending on gambling. Just 49% said they were going to spend the same sums of money on this kind of entertainment as they did.

Aside from this, the above-mentioned group of gamblers was asked how the increased cost of living impacted how they spent money. 11% said they were struggling to pay their bills. 43% of respondents said they were forced to cut their expenses on non-essentials. 38% of respondents said their spending did not change significantly. Only 7% of players said inflation did not affect their spending.

Besides, 35% of gamblers said they had a budget for gambling, while the rest of the players said they did not set one. The gambling industry should consider these findings and be aware that gamblers may now face more difficulties affording this kind of entertainment. Operators now require access to greater financial data on their players.

How Does Inflation Affect Other Fields

Inflation is growing in the UK. The Bank of England expects inflation to be around 2%, although it is now above 10%, according to the UK Office for National Statistics. Furthermore, despite its intentions, the Bank of England recognizes that 13% is approaching.

Such an inflation rise means no industry is safe. For example, British Airways is canceling almost 10,000 flights through the end of 2022 because the major hub has been dealing with strikes in the summer, which have led to reductions in the company’s serviceability.

Other unions are also dealing with strikes, which worsens the situation even more. Postal workers with the Communication Workers Union have announced they are going to launch a strike. The legal industry also looks for more funding for the justice system, threatening to strike.

In May, the price of goods from factories was almost 16% higher than in the previous year. Such a rise in prices affects small- and medium-size enterprises. Considering all industry fields suffering, consumers will be forced to make tough choices.