Are Gamblers Betting More Than Ever in the UK?
Posted by Harry Kane on Friday, June 9, 2017
The latest annual figures from Britain’s booming gambling industry are in, and it is fair to say that they make for truly impressive reading.
In short, while the number of gambling provisions and resources has fallen slightly during October 2015 and September 2016, the amount wagered by players both on and offline has continued to increase. This is at odds with the prevailing economic climate in the UK, which continues to soften as consumer confidence wavers.
So just how has this occurred, and what does it mean for the industry going forward? Let’s take a look:
The Facts and Figures: A True Growth Industry
According to statistics, UK gamblers wagered a staggering £13.8 billion in the year ending September 2016, with £4.5 billion being spent online. Despite recording a gross yield of nearly $14 billion for the year, however, the sector also reported a drop in the number of both live betting shops and casinos. More specifically, the number of betting machines and terminals fell by 0.2% in the UK, while the number of active betting shops declined by 1.4%.
Players also had access to one less casino during this period than they did in 2016, as provisions fell while revenues soared.
One of the first things to surmise from these figures is that the rising revenues were primarily generated online, with Internet poker, sports betting and casino gameplay all recording sustained growth. Online gambling also continues to command a rising share of the overall market, with a £4.5 billion annual spend representing 32% of all gambling activity that takes place in the UK. This trend will only continue too, with the number of online casinos set to increase incrementally for the foreseeable future.
Beyond the Numbers: Are Gamblers Spending More?
The question that remains, however, is whether gamblers in the UK are actively spending more than ever before? This is a reasonable conclusion to arrive at, particularly if you assume that the decline in available betting outlets has compromised activity levels and reduced the number of individuals placing bets. Indeed, if there are fewer marginally citizens placing bets through a restricted number of platforms, it would stand to reason that the average spend per gambler is rising to unprecedented levels.
This can be debated at length, of course, but from the figures published by the UK Gambling Commission it is arguably unlikely. A more reasonable interpretation of the data is that the decline in betting portals has taken place almost entirely offline, while the available number of online platforms has remained largely unchanged. As a result of this, many gamblers who have lost access to a local betting shop will have most likely transitioned to a virtual platform, suggesting that the number of active players remains unchanged.
This hints at only an incremental increase in the average spend of UK gamblers, rather than a significant or disproportionate hike.
The Last Word
Despite this, there is no doubt that these figures are impressive given the wider economic climate. Much of the credit for this must go to online casino and sports betting brands, who have continued to benefit from increased regulatory measures and effective promotions that target existing players.