The Latest UKGC Report Reveals a 0.6% Drop in Online Gambling Revenue
December 1st, 2020 1.00pm
The UK Gambling Commission posted the latest report, revealing the numbers for the twelve-month period ending on March 31, 2020.
According to available figures, the total gross gambling revenue took a slight decrease, although the lottery activity went up.
What a Year
The UK market generated £14.2 billion during the said period, which represents a decline of 0.6% when compared to the corresponding period of 2019. This is the second consecutive year that overall gross gambling revenue sees a decline.
It should be noted the reporting period included eleven days after the country entered its first lockdown, meaning the figures don’t reveal the full impact the ongoing health crisis had on the country’s gambling industry. However, the reporting period does include the fixed-odds betting terminals (FOBTs) collapse, which followed the government’s decision to lower stakes from £100 to just £2, introduced on April 1 last year.
Total gross gambling revenue, excluding lotteries, recorded a 4.5% drop to £10.2 billion. On the other hand, National Lottery recorded a 10.4% rise in sales to £3.4 billion, while other lotteries generated £611.6 million in revenue, improving by 13.2% from the last year’s result.
In total, both online and retail lotteries accounted for nearly third (28.2%) of the overall gross gambling revenue.
Online gambling bounced back from its decline in the previous year, by ending the period with an increase of 8.1%, or £5.7 billion. That’s almost 40% share of the entire sum, a year-on-year rise of three points. Once again, the vertical claimed the largest slice of the overall figure.
Online casino generated £3.175 billion in gross gambling revenue, 3.7% more than in 2019. Online betting shot was up by 15.5% to £2.33 billion, while online bingo improved by 0.5% to £176.8 million.
Numbers Reveal the Full Story
Video slots had the best performances in the online casino segment, accounting for 69.7% of the share. At the same time, its gross gambling revenue improved by 4.9% from the previous period.
‘Other games’ increased by 18.5%, claiming 8.7% of the overall share. Poker followed the positive trend, ending the twelve months with a rise of 2.7%. However, roulette and blackjack didn’t manage to do so, ending the year with a drop of 1.7% and 14% respectively.
The only sport to have reported negative gross gambling revenue growth was tennis. Its figures went down by 3.5% to £116.7 million. Football continued to dominate the offer, increasing its gross gambling revenue by 13.8% to £1.13 billion. Horse betting went up by 28.2% to £653 million, while wagering on dogs improved by 29.2% to around £73 million.
30% more new online gambling accounts were opened during the said period, although the total numbers of accounts declined by nearly 25%.
When it comes to retail, betting sho gross gambling revenue dropped by 26.4% to £2.4 billion. Over-the-counter betting was the main factor behind such a poor result, as it went down by 5% to £1.28 billion. The FOBT B2 machines saw a drop of 99% to just £12 million. This, in turn, led to the 58% increase of B3 machines, which ended the period with £1.06 billion. The overall machine gross gambling revenue was still down by 41.2%.
The number of betting shops in March 2020 was 7,681, which is 7.58% less when compared to the same month of 2019. It’s the sixth year in a row that the number of betting shops decreases. Bingo halls and arcades also went down, while only the number of casinos increased.
Land-based casinos generated £1 billion, 4% less from the last year’s result, a with both tables and machines dropping down to 4.6% and 1.8% respectively. Total machine gross gambling revenue fell by more than 25% to £2.1 billion, with only the B3 machines recording growth.
Lotteries performed well, but it didn’t help much