With soaring energy prices forcing businesses to re-evaluate running costs, the head of the Betting and Gaming Council (BGC), Michael DugHer has called upon the government to take action to protect the hospitality industry as the energy price hike hits the bricks and mortar casinos and betting shops along with the rest of the hospitality sector.
Struggling Industry Sector
In the UK, there are 6,500 betting shops and 121 land-based casinos employing 44,000 people and an additional 48,000 jobs. Each year the industry contributes £4bn toward the UK economy and a further £2bn in taxes to the Treasury.As a result of the pandemic, businesses in the hospitality sector have struggled after closing for the best part of a year, these businesses, along with others in the hospitality sector are facing a fresh challenge as the energy crisis hits hard. Businesses are seeing an increase of 300% according to deals being offered by the energy providers.Last week, The Rank Group reported its energy costs hit an all-time high of £23m, up from £13m, and fears these figures could reach a staggering £46m this year if the prices continue to rise.Michael Dugher said, “The cost of simply doing business is rising at an exponential rate. If urgent action isn’t taken soon, continued energy price increases could have a catastrophic impact across the hospitality and leisure sector, including hitting our members.“Casinos are a vital pillar of the hospitality and tourism sector in cities and towns across the UK. Just like the rest of the hospitality they are struggling to build back after the global pandemic and now face a new crisis.“Meanwhile bookmakers, who play a critical role on the UK’s hard-pressed streets face similar challenges. In short, any business which welcomes customers into a building must grapple with energy emergency.”