The number of offline establishments of the gambling market in the UK, 2019 Gambling user profile and game preferences. According to the Gambling Commission's Report, 47% of adults (over the age of 16) admitted to participating in gambling at least once a month. Of these, more men (51%) than women (43%) made bets. Data shows fall in UK gambling participation during lockdown 7th July 2020 10:18 am GMT The UK Gambling Commission (UKGC) has published new data on the impact of the COVID-19 lockdown on gambling behaviour, revealing an overall decrease in active players accounts between April and May. Gross Gambling Yield (GGY) In 2018, the remote gambling industry in the United Kingdom generated a gross gambling yield (GGY) of approximately 5.35 billion British pounds. Overall the UK had a GGY. Ever since the UK Gambling Commission relaxed some of the gaming laws, gambling has been on a steady increase, more so in the last five years as shown in recent reports. It is thus no surprise that new bingo sites keep coming in the UK in a hope to reap the massive profits that come with these developments.
Thanks to its beneficial tax regime and the rapid growth of online gaming, the UK is one of the most important markets in the world for the gambling, betting, and lottery sector. With the historic focus of attraction for industry operators, the country has the highest rate of active players and ranks third in terms of revenue, behind only China (with Macao leading) and the U.S. (Nevada).
UK Gambling Market Characteristics
Gambling Industry Definition
The market includes all activities related to gambling, lotteries, and betting (CNAE: 9200). This industry, in addition to providing the service itself, encompasses the manufacture and distribution of a wide range of associated products and equipment goods.
Gambling Market size in the UK
Official industry figures and statistics
The UK Gambling Commission publishes twice a year (in May and November) official statistics on developments in the gambling, lottery, and betting sector in the country. It provides the latest information on each subsector, including online gaming services as well. In 2019 the gambling sector in the UK generated revenue of £14.36 billion, a decrease of 0.3% over the previous year.
Online gambling keeps the leading position as a subsector within the industry, accounting for 37% of total turnover. The offline betting sector is responsible for generating more than 22% of the market's turnover. National Lottery is also of special importance in terms of revenue, generating 21% of the total turnover of the sector. The rest of the income is obtained by casinos, bingo establishments and amusement arcades in general.
Meanwhile, the number of establishments with sector-related activities has been declining since 2013. However, the UK remains a mature market. Thus, in March 2019, there were 10,761 establishments of licensed operators, 3.2% less compared to data from March 2018. In addition to licensed premises, there are a total of 51,541 establishments where gambling is allowed and is controlled by the competent authorities.
Gambling user profile and game preferences
According to the Gambling Commission's Report, 47% of adults (over the age of 16) admitted to participating in gambling at least once a month. Of these, more men (51%) than women (43%) made bets. The age groups with the highest percentage of participation in gambling were between 35 and 54 years old. The report on gambling in Northern Ireland shows similar patterns to those seen in Britain. In this case, 67% of the respondents stated that they had participated in gambling in the last year. The percentage of men active in the game was higher than that of women. And the age group with the most participation was also between 35 and 54 years old.
As shown in the graph below, most people in the UK who play, prefer to do so in lotteries, sports betting, and scratch-off tickets. Although slot machines and bingo also attract numerous participants.
Conjunctural factors
On January 31, 2020, the United Kingdom left the European Union. Until December 31, 2020, the country is in a transition period, while a new trade relationship with the EU is being negotiated. Brexit has had strong implications in the sector. Household disposable income and consumer confidence have declined and are factors with a strong impact on activities such as gambling, lotteries, and betting.
On the other hand, if the UK were to leave the European Union without an agreement, it could mean that British companies without a base in the EU would be unable to provide services there.
As for the health crisis caused by the COVID-19, the main implications are being the closure of all physical betting establishments and the paralysis of sports betting (in 2019 it accounted £1.4 billion for operators). Football and horse racing account for 75% of the UK sports betting market and both are currently suspended.
However, with the closure of physical betting establishments, and the suspension of major sporting events, players are migrating to alternative products. There is currently increased customer activity in online casino and poker products. That could compensate for the disruption of sports betting over a period. With thousands of online operators in the UK, it is conceivable to think that the remote gaming scene will prosper in the short term. While the pandemic lasts and the measures to overcome it, the following risk factors occur: social isolation, boredom, stress, financial and job insecurity, and the opportunity to play online. This can affect the most vulnerable users with gaming issues. Therefore, the British Parliament has proposed to impose strict regulations for the sector. Among the measures envisaged are:
- limiting the value of bets to two pounds,
- the cessation of the VIP player reward systems,
- the suspension of advertising and bonus offers
- control of the amount of time and money that players spend during the pandemic blockade,
- intervention by operators if these increases compared to pre-crisis levels.
Key market players
- The Gambling Commission is the public body responsible for regulating gambling and supervising the law of this sector in Great Britain. It is the entity in charge of granting licenses to those gaming establishments that comply with the established legal requirements.
- In Northern Ireland, it is the courts and district councils that authorize gambling activities. The Department for Social Development tracks licenses or license renewals, and the Northern Ireland Police Service enforces the Gambling Law.
- A number of gaming operators in Great Britain: as of March 31, 2019, there were a total of 2,690 operators in the UK with the license required by the Gambling Commission to be able to operate in the market. Of all of them, 338 operate in more than one subsector. With licenses (both online and face-to-face) operators have the right to carry out 3,656 activities (3.4% less than the previous year).
Main operators
In 2019 the four largest competing companies had a combined market share of 34%.
Ladbrokes Coral and William Hill position themselves as the operators with the most physical gambling establishments. However, smaller brands still manage to retain a considerable number of outlets.
In the online sector, Paddy Power maintains a strong presence.
In the casino market, the Grosvenor chain occupies the dominant position, but independent casinos are still profitable.
On January 31, 2020, the United Kingdom left the European Union. Until December 31, 2020, the country is in a transition period, while a new trade relationship with the EU is being negotiated. Brexit has had strong implications in the sector. Household disposable income and consumer confidence have declined and are factors with a strong impact on activities such as gambling, lotteries, and betting.
On the other hand, if the UK were to leave the European Union without an agreement, it could mean that British companies without a base in the EU would be unable to provide services there.
As for the health crisis caused by the COVID-19, the main implications are being the closure of all physical betting establishments and the paralysis of sports betting (in 2019 it accounted £1.4 billion for operators). Football and horse racing account for 75% of the UK sports betting market and both are currently suspended.
However, with the closure of physical betting establishments, and the suspension of major sporting events, players are migrating to alternative products. There is currently increased customer activity in online casino and poker products. That could compensate for the disruption of sports betting over a period. With thousands of online operators in the UK, it is conceivable to think that the remote gaming scene will prosper in the short term. While the pandemic lasts and the measures to overcome it, the following risk factors occur: social isolation, boredom, stress, financial and job insecurity, and the opportunity to play online. This can affect the most vulnerable users with gaming issues. Therefore, the British Parliament has proposed to impose strict regulations for the sector. Among the measures envisaged are:
- limiting the value of bets to two pounds,
- the cessation of the VIP player reward systems,
- the suspension of advertising and bonus offers
- control of the amount of time and money that players spend during the pandemic blockade,
- intervention by operators if these increases compared to pre-crisis levels.
Key market players
- The Gambling Commission is the public body responsible for regulating gambling and supervising the law of this sector in Great Britain. It is the entity in charge of granting licenses to those gaming establishments that comply with the established legal requirements.
- In Northern Ireland, it is the courts and district councils that authorize gambling activities. The Department for Social Development tracks licenses or license renewals, and the Northern Ireland Police Service enforces the Gambling Law.
- A number of gaming operators in Great Britain: as of March 31, 2019, there were a total of 2,690 operators in the UK with the license required by the Gambling Commission to be able to operate in the market. Of all of them, 338 operate in more than one subsector. With licenses (both online and face-to-face) operators have the right to carry out 3,656 activities (3.4% less than the previous year).
Main operators
In 2019 the four largest competing companies had a combined market share of 34%.
Ladbrokes Coral and William Hill position themselves as the operators with the most physical gambling establishments. However, smaller brands still manage to retain a considerable number of outlets.
In the online sector, Paddy Power maintains a strong presence.
In the casino market, the Grosvenor chain occupies the dominant position, but independent casinos are still profitable.
Online gambling has allowed companies to enter the market and quickly establish a strong brand.
Market Opportunities
In the United Kingdom, the conditions to operate in the gambling market have been tightening, taxes are increasing, and strict regulations are imposed. The aim is, among others, creating a safer game and avoiding gambling in the country.
In April 2019, the Gambling Commission launched a new three-year national strategy to reduce the harm that gaming creates to users. The new regulations have encouraged mergers between operators, to protect their profit margins. Due to tighter regulation and narrower margins, some companies have left the industry.
However, despite restrictions on machines and advertising, the industry has grown in recent years, and it is estimated that it will continue to do so. Bookmakers are expected to dominate the industry, bingo halls and lotteries will generate constant demand, and demand for online gaming platforms and sports betting will increase.
There could be an exponential growth of online gaming with the development of big data, artificial intelligence and analytics used by operators in their marketing strategies, customer acquisition and consolidation. Algorithms have become popular, providing customers with engaging and personalized experiences. Despite its maturity, the sector offers opportunities for technologically advanced companies.
Market Access Keys
Distribution
The offer of gambling is made in physical establishments (casinos, betting shops, etc.) or through electronic platforms. Those companies that manufacture gaming machines or furniture and accessories for physical gaming establishments can distribute their products through physical stores or e-commerce platforms. There are lots of them, either generic such as Amazon or eBay, or specialized distributors such as Fruit Machine Planet, Gaming Solutions and others.
Regulatory and non-regulatory barriers
The barriers to entry to the sector are considerable. Significant capital investment is needed in the bookmakers' segment. It is needed to compete with companies such as William Hill, with real estate located on the busiest main streets. Also, to provide gambling, physical or remote, a license is required.
The online sector involves fewer barriers to entry, fixed costs are lower, physical presence is not required and competitors are more fragmented. However, this channel requires high advertising investments and highly advanced technology.
Another important barrier is the strict regulation that is being imposed in the sector. The United Kingdom is a highly regulated market, with differentiated legislation according to the territory.
In Britain (England, Scotland, and Wales) the main regulatory instruments are the Gambling Act 2005 and the Gambling Act 2014. This regulation covers the entire sector of gambling, both online and in physical establishments. It organizes the industry and its agencies, specifies the requirements to obtain a license and establishes the different administrative procedures.
In Northern Ireland, gambling is regulated by the Betting, Gaming, Lotteries and Amusements Order of 1985. The legislation is considered old, complex, and increasingly outdated. Therefore, it is currently under review, trying to adapt to the new technological reality.
The UK Government imposed a 15% tax on profits in the online gaming segment in December 2014. It is levied on all operators targeting UK customers.
Since October 2019, the tax on profits from Fixed-odds betting terminals (FOBT) belonging to the B2 category increased from 15% to 21%. In April 2019, the maximum bet on FOBT was reduced from 100 to 2 GBP. As of April 2020, gambling companies (except for lotteries) do not allow consumers to bet with credit cards, both for online and offline games.
Aid
The sector receives a low level of aid.
The Gambling Commission offers funds to larger gaming operators to improve their methods of identifying and addressing problematic gambling, ensuring that support and treatment are provided to those who require it.
Since April 2017, and for a period of 3 years, the Gambling Commission has also established a tax and financing system to ensure a fairer distribution of costs, particularly for smaller operators. For their part, organizations like the Association of British Bookmakers and National Casino Forum help their members improve their performance, analyse data, and implement best practices.
Uk Gambling Participation Meaning
Original source
Uk Gambling Participation Rules
2016 was a record growth year in the UK gambling industry. In this post, we focus on the performance of its main three critical aspects including yield, participation and problems.
MONEY
According to the latest Industry Statistics document by the UK Gambling Commission*, total gross gambling yield (GGY) of the industry in Great Britain for the period Oct 2015 – Sep 2016 amounted to £13.8bn.
The above figure, which includes the operators licensed and regulated by the Commission itself, shows continued growth in most areas with the exception of bingo and the National Lottery.
In particular, remote gambling (mostly online casinos) is the largest sector, with a 32% share of the overall market and £4.5bn GGY. Within the remote sector, online casinos in UK have generated the highest turnover and £2.4bn in GGY, mainly through slots games (£1.6bn). GGY for remote betting, including betting exchanges and pool betting, totals £1.9bn, powered by football and horses.
Uk Gambling Participation Program
Punta cana poker classic 2018 picks. The National Lottery and non-remote betting continue to represent two of the other largest sectors. National Lottery sales were £7.4bn for the period October 2015 to September 2016 (a 3% decrease compared to the year prior). In terms of non-remote, the betting sector (including machines) accounted for £3.4bn GGY while Bingo games GGY decreased slightly to £371.6m, matched by a similar decrease in bingo machines GGY to £310.7m (the first decrease since 2010).
In the same period, returns to good causes were £1.7bn (6% lower than in the previous 12 month period).
PARTICIPATION
In 2016, overall gambling participation has increased, driven by the UEFA European Football Championship 2016 and the Rio 2016 Olympics. 17% of people have gambled online, with younger age groups seeing the largest increases in participation. Betting activities, other lotteries and casino games have seen an increase in online participation.
Amongst online gamblers, laptops remain the most popular device but use of tablets and mobile phones is increasing, with 43% of online gamblers using either device. Men are more likely to gamble using a mobile phone, whilst women are more likely to gamble using a tablet. The majority of online gamblers play at home, but younger age groups also do it at work, whilst commuting, in a pub or club. 26% of online gamblers have bet inplay, with rates highest in 18-24 year olds. On average, online gamblers have three accounts with online operators.
Awareness of self-exclusion from a gambling company has increased among people who have never excluded to 37%. Gamblers aged 25-34 are most likely to self-exclude while 10% of them use financial limits to manage their gambling. 23% of gamblers have read terms and conditions, of which 24% felt that they had been in a situation where terms and conditions had been unfair, this representing an aspect to improve.
Overall 32% of online gamblers follow a gambling company on social media platforms with rates higher among 18-34 year olds and Facebook being the most
popular platform. Importantly, online gamblers are more likely to spend money by advertising than social media posts, particularly 18-24 year olds.
PROBLEM GAMBLING PREVALENCE
According to surveys by the Commission, overall 0.7% of respondents were identified as problem gamblers, with men more likely than women to be categorized as such (1.2% compared to 0.1%). 16-24 year olds are most likely to be categorized as problem gamblers (1.4%), followed by 35-44 year olds (1.1%) and 25-34 year olds (0.8%).
* Established under the Gambling Act 2005, the Gambling Commission is an executive non-departmental public body of the Government of the United Kingdom (the Department for Culture, Media and Sport) responsible for regulating gambling and supervising gaming law in Great Britain (excluding Northern Ireland.) with the exception for granting planning permission for bookmakers shops on the high street.
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