UK sees iGaming contribution help grow market yield

UK sees iGaming contribution help grow market yield

Wednesday, December 5, 2018 Posted by News Team
Growth in iGaming offsets decline in land-based betting

The UK gambling industry saw gross gaming yield rise 4.2% to £14.4bn for the 12 months ended March 31, driven primarily by growth from the country’s iGaming sector. 

Remote gross gaming yield (GGY), comprising regulated online betting, casino and bingo, grew 12.8% from the prior year to £5.3bn, and now accounts for 37% of the market total, according to the UK Gambling Commission.

With a 54.6% share (or £2.9bn), casino was the largest vertical, followed by fixed-odds betting, which generated yield of £2.1bn, or 38.7% of the total. The three remaining verticals - bingo, exchange betting and pool betting - lagged far behind the main two, with bingo making a contribution of £164.8m, exchange betting £160.1m and pool betting just £28.7m. 

Slots were the key source of online casino GGY, generating £2bn, followed by table games yield of £311.1m. 

Meanwhile, sports betting was dominated by football, which was by far the most popular product with GGY of £1.0bn, followed by £610m from betting on horse racing. 

iGaming player numbers grew strongly over the 12-month period, with active customer accounts rising 12.9% year-on-year to 33.6m, and new account registrations up 14.4% to 35.4m. 

Land-based wagering was the second-largest vertical in terms of GGY, despite a 4.1% decline to £3.3bn. This came primarily from betting shops, which accounted for £3.1m of the total, though gaming machines accounted for £1.8bn, with B2 gaming machines, or fixed odds betting terminals (FOBTs) generating 96.1%. This is likely to decline sharply from April 2019, when maximum FOBT stakes are cut to £2. 

Total shop numbers fell marginally, down 1.8% to 8,406, with the industry warning of further closures resulting from the FOBT stake reduction. While GVC Group-owned shops dominate the market, with 40.3% of shops operated under its Ladbrokes or Coral brands, William Hill outlets account for 27.1% of all shops, making it the best-represented brand.

The National Lottery, meanwhile, accounted for £3.0bn of total market GGY, paying out £3.9bn in prizes over the 12 months, and contributing £1.5bn to good causes. 

The land-based casino market saw total yield rise 2.4% to £1.2bn across 152 casinos in England, Scotland and Wales. Rank Group and Genting UK, operating 72% of all venues, dominates the sector. 

American roulette proved to be the most popular bricks-and-mortar game, accounting for 34.7% of casino GGY, followed by Punto Banco, a variant of baccarat, with a 24.9% share and electronic gaming, which accounted for 17.4%. 

Land-based bingo struggled, with GGY rising only 0.2% to £688.3m, while lotteries other than the National Lottery saw yield rise 13.7%, albeit from a low base, to £502.9m. The arcade sector, like land-based betting, posted a decline in yield, which fell 0.9% to £418m. 

The UKGC also revealed that 1.4m customers self-excluded over the 12 months. Of this total, 121,163 breached their self-exclusion, while a further 78,005 resumed gambling after a period of exclusion. 

A further 88,971 individuals gambled without being able to verify their age. Online accounted for 72,033 of these incidents.


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