UK gambling sector sees steady online growth

Anchal Verma November 4, 2024

SiGMA news

UK gambling sector sees steady online growth

The UK Gambling Commission has unveiled its latest data on gambling activity across Britain, providing insights into online and offline gambling behaviours from March 2020 through September 2024. The report reveals an 11 percent surge in the online gross gambling yield (GGY) to £1.32 billion ($1.71 billion), alongside a stable but slightly reduced performance in Licensed Betting Operators (LBOs) on British high streets.

Online gambling growth hits record highs

The online gambling sector in Britain has experienced a period of substantial growth. During Q2, the total number of bets and spins placed online hit a record 25.2 billion a 12 percent increase compared to the same period last year. This growth was accompanied by an 8 percent rise in active accounts per month, marking three consecutive quarters of increased online engagement.

A major contributor to this growth was online slots, which saw an impressive 16 percent year-on-year rise in GGY to £680 million. The number of active accounts in the online slots segment increased by the same percentage, reaching a record 4.4 million per month. Additionally, longer online slots sessions rose by 9 percent, with 10 million sessions lasting over an hour. However, the average session time held steady at 17 minutes, while GGY per session slipped slightly from £4.20 to £4.13.

Real event betting surges despite drop in bets

Within the online sector, real event betting showed mixed but overall positive results. While GGY for real event betting grew by 6 percent year-on-year to £453 million, the total number of bets placed actually declined by 10 percent. This suggests a potential shift in player behaviour, where fewer but higher-value bets are being placed. The steady increase in GGY indicates that demand remains strong, even as betting patterns evolve.

Retail gambling sees minor decline

In contrast, the retail sector faced modest challenges. LBOs across British high streets reported a slight decline in their GGY, which fell by one percent to £533 million during Q2. While the number of total bets and spins remained stable at 3.1 billion, this segment appears to be experiencing a plateau in growth. The flat activity level may reflect broader shifts as more consumers opt for online options, which offer increased convenience and accessibility.

The Gambling Commission has urged caution when analysing these figures, noting that some growth in active accounts could be attributed to reclassification of certain gambling products. The agency also points out the complexities of measuring active accounts across multiple gambling platforms, as customers often engage across different online and in-person verticals.