Why are More People Turning to Online Casinos?

Posted by Harry Kane on Wednesday, March 24, 2021

It only takes a cursory glance at the gambling figures in the UK to see the impressive rapid growth of iGaming.

This niche, which generated a total GGY of £5.7 billion in the year ending March 2020, also saw growth of 8.1% during the same reporting period. Incredibly, this sector now accounts for more than 38% of the industry overall, with a growing number of people now turning to online gambling across various age ranges.

We’ll explore this in further detail below, while asking why a growing number of gamblers may be making the transition online.

iGaming Growth – Drilling Down into the Numbers

If we extend the reporting period to November 2021, we see that online slots were particularly prominent drivers of iGaming growth.

More specifically, the total slots GGY rose by 3% during this period, with this reaching almost £177 million in revenue overall.

Even more interestingly, the number of wagers placed by punters online increased by an impressive 4% to 5.2 billion during the reporting period, with this supported by a 1% rise in the number of active accounts (which increased to 2.8 million).

In terms of spending and total amount wagered, however, these numbers remained largely unchanged in the six months through November 2020. This confirms that the increase in the iGaming GGY was largely driven by an increase in gambling participation rather than the increased spend of individuals, suggesting that people are turning to iGaming platforms in their droves.

Some will also argue that this reflects the various measures taken by the UKGC to protect vulnerable gamblers and tackle online money laundering, alongside improved verification checks and a growing awareness about the importance of responsible gambling.

The popularity of the iGaming space is also borne out by virtual gambling demographics, with almost all age ranges seeing an increase in participation when compared with previous years.

In fact, the only demographic to buck this trend is those aged between 25 and 34, with just 23.5% of this number gambling online in 2020 (as opposed to 26.2% back in2018 and 24.4%in 2017).

Other demographics have seen huge spikes in participation, however, with the 35 to 44 age range offering a relevant case in point. Last year, a whopping 29.3% of this number wagered regularly online, compared with just 21.5% in 2016.

It’s also thought that online gambling platforms are increasingly appealing to older players, particularly those aged between 55 and 64. In this instance, the demographic saw 23.5% of its member wager online in 2020, with this figure having been as low as 16.5% just four years previously.

Even the 65+ demographic has become increasingly active in the iGaming space, with just 11.5% of this number betting or gambling online in 2016. This increased incrementally to 14.2% last year, while further hikes are forecast in the future.

Clearly, more people across a diverse selection of age ranges are now wagering online, with slots particularly appealing to new players and this vertical responsible for more than two-thirds of the total online GGY in the UK.

This is a positive trend for operators, as while the amount spent per head remains unchanged, brands have a larger and constantly growing audience to target going forward.

Why are Players Transitioning Online?

At this stage, the question that remains is why are so many people across a broad range of ages now gambling online?

There are several potential answers to this, not least the convenience and flexible payment methods offered by online casinos.

When it comes to the former, players can compare a huge online market when searching for prospective casinos, rather than being restricted to one or maybe two options within their local area.

This enables them to make a more informed and considered choice, and one that suits their unique preferences, bankroll and ideal payment option.

On the subject of payments, you can credit your online gambling account through a range of different methods, from Visa debit cards and PayPal to popular and low-cost e-wallets like Skrill and Neteller.

Most casinos also enable you to the prepaid Paysafecard, which is ideal for those of you who may be worried about excess or problem gambling. With this method, you can set viable betting limits that are within your budget, while refraining from spending more than you can afford to lose in any particular timeframe.

When you attend a land-based casino, you’ll also note that there are minimal offers or promotions that incentivise you to wager. The same cannot be said for online casinos, however, which compete aggressively for customers by offering lucrative welcome offers and (in some instances) free spins.

These offers usually take the form of deposit matches, which will replicate your first deposit by between 100% and 200% up to a maximum value. This can afford high-rollers a significant amount of free cash, while the typical minimum deposit of £10 is also inviting for casual or novice players with minimal bankrolls.

In some cases, brands will also offer no-deposit bonus sums in the form of cash of free spins. These aren’t dependent on you making an initial deposit, as you can opt into receive this type of offer just as soon as you’ve registered for a new account.

On a final note, it’s important to recognise that online casino platforms are demonstrably fair and required to utilise advanced random number generator (RNG) software to generate game outcomes.

Similarly, the UKGC now compels operators to publish the return-to-player (RTP) rates for their respective games, particularly online slots. This enables players to calculate roughly how much they can expect to recoup for every £1 wagered, while the RTP rate can also be subtracted from a value of 100% to determine the estimated house edge for each title.

This enables players to make increasingly informed and beneficial decisions in the digital age, particularly in terms of the games that they choose to play, their betting strategy and the precise amount that they choose to stake with each hand or spin of the reels.