| In 2006 it was reported that there were up to | | | | case of the UK, whose inflation rose to nearly |
| 370,000 problem gamblers in the UK. Of these | | | | 30%. |
| 370,000 only 20% were reported to have a | | | | At the time gambling figures were not well |
| serious gambling problem and requiring help. The | | | | recorded. However, some statistics show that |
| rest were said to be small to medium gamblers | | | | when the fallout from this inflation busting period |
| that, while not being severely at risk, recognised | | | | took affect, gambling in the UK went on the |
| they could have a problem, and found it difficult | | | | decline as people suffered financially from the |
| to stay away from gambling on areas such as | | | | depression of recession, in particular due to loss |
| horse racing or playing on online casino games. | | | | of equity and monies in falling house prices at the |
| The figure of 370,000 is also low in comparison to | | | | end of the 80s. During the 80s licensed clubs |
| international figures. | | | | were in decline and gambling turnover in 1990 was |
| Gambling itself has been on the rise in the UK in | | | | published at around £13.4 billion. Bingo clubs in |
| recent years, particularly in areas such as online | | | | particular felt the brunt as licensed bingo halls |
| games like poker and roulette, with growth of | | | | declined from 1800 in 1974 to just 743 in 1990. |
| around 40% from 2005. | | | | Under the current Gambling Act 2005 which |
| With the UK's economy growing at its fastest | | | | comes into full effect in September 2007 no |
| rate in two years in the latter part of 2006, what | | | | online gambling organisation is allowed to operate |
| affect has it had on gambling in the UK. Does the | | | | in the UK. However, the current enforcement |
| state of the economy determine the numbers of | | | | does not prevent UK residents from playing online |
| people gambling? For example, are more people | | | | casino games and in fact, has led to an increase |
| likely to gamble if they have more disposable | | | | to 2% of the overall population of UK residents |
| income, or are they likely to gamble more on | | | | having gambled online in some form or another. |
| sites like online poker, if they are in need of | | | | When the Act comes into play in September it is |
| further income to resolve debts or issues at | | | | likely that it will open the door for many gaming |
| home? | | | | operators to function from the UK and so bring |
| Retail sales and a strong housing market were the | | | | more exposure and confidence in spending money |
| main reasons for growth in the UK's economy of | | | | in online poker or casino sites. |
| late. According to economists the World Cup | | | | As people's propensity to gamble declined along |
| affect was also responsible, as a surge in the | | | | with the economic markets in the 80s, in |
| purchase of electrical goods such as TVs, and an | | | | comparison with current gambling figures which |
| increase in pub attendance spiked during the | | | | are in alignment with current economic growth, it |
| World Cup period. Inflation figures, released at the | | | | can be said that people are more likely to gamble, |
| end of 2006, added further pressure on the Bank | | | | when the economy is at its strongest. |
| of England to introduce an interest rate hike as | | | | So while many scaremongers would say that |
| inflation rose to 2.5% in June, well above the | | | | people gamble while they are depressed or in |
| government's 2% target. | | | | need of a financial boost, perhaps when the |
| Global markets are also said to be "cautious", | | | | economy is at a low point, it is clear that people |
| worried that the era of low global interest rates is | | | | only really gamble when the country they are |
| at an end. Last year global growth was 5.4%, the | | | | living has much more economic stability and they |
| fourth consecutive year in which it has grown | | | | themselves have more disposable income. |
| near or above 5%. Comparisons are being drawn | | | | Current economic growth can only lead to a rise |
| with the 70s when commodity prices were | | | | in the current gambling turnover, which is |
| booming, and economists are now warning of | | | | estimated to be around £85 billion. So while |
| inflationary consequences due to the increasing | | | | the Bank of England may threaten to increase |
| money supply. In the early 70s not only was | | | | interest rates, the increase in number of people |
| global money supply stronger but so was inflation, | | | | gambling online is also likely to remain on the up. |
| even before it headed into deep water as in the | | | | |