HomeanalysisUK IGaming Platforms Generated £4.4bn in GGY With New Accounts in Decline

UK IGaming Platforms Generated £4.4bn in GGY With New Accounts in Decline

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The UK gambling sector reported a remarkable £4.4bn in gross gambling yield (GGY) from online casinos in 2023.

Despite the sector’s impressive revenue, the online casino market is experiencing challenges due to a massive decline in new account registrations, which recently fell by 3%. Our speculation is that this suggests a shift in consumer behaviour, which could reshape the landscape of online gambling in the UK.

While the increased revenue from existing accounts is a sign of growth, the decline in new account creation might also be an indication that the market is mature enough for growth to be determined by retaining existing customers rather than attracting new ones.

Breakdown of the £4.4bn GGY

Gross gambling yield is how the total revenue generated from gambling activities in a year is calculated. The calculation simply involves subtracting the total amount paid out in winnings from the total amount of money wagered by players. It is calculated as the gross income gambling operators receive from their customers before deducting operating costs. 

Factors contributing to revenue growth

In 2023, casinos collected this £4.4bn from several sources. Here’s how each of those sources contributed:

Online slot games

Approximate contribution: £2.89bn

Online slot games are the biggest revenue generator for UK online casinos. They are quite popular due to their simplicity, variety and big potential for payouts. One of the things that makes online gaming so popular is that gaming is increasingly more convenient than ever before. 

Table games

Approximate contribution: £500m

Table games, including poker, blackjack and roulette offer a traditional casino experience and are very popular among players who enjoy strategic gameplay and social interaction. One reason that they are gaining popularity is likely due to the online versions introducing live options, making the gaming experience a lot more authentic.

Sports betting

Approximate contribution: £1.4bn

Sports betting has grown significantly due to new features such as live betting, a wide range of sports to bet on and real-time updates. Sports fans can even stream matches on iGaming platforms such as Betway

Virtual betting

Approximate contribution: £100m

The revenue from virtual betting includes income from simulated sports events, such as virtual horse racing, football and greyhound racing. They are also called fast games and have many variations.

Other games

Approximate contribution: £1.41bn

This category covers bingo games, lotteries and virtual sports. The iGaming sector has a large variety of games for every user and these games contribute to it. Many players enjoy online bingo, which has strong player communities and attracts a large variety of players. Traditional casino games such as baccarat, craps and various card games also fall under this revenue section.

Decline in new account registration

The decline in new account registrations goes as far back as the pandemic as new account registration peaked around that period. Participation remained high in 2021, but the rate of new account registrations began to slow down as restrictions eased. Two years later, by the end of 2022, new account registration had declined by 9.1% compared to pandemic periods. 

Factors responsible for the decline in account registration

The decline in account registration isn’t without reason, some of the factors that have contributed to this decline include:

Regulatory changes

The UK Gambling Commission has introduced stricter regulations, including mandatory ID verification, limits on betting amounts and better problem gambling regulations. The changes that were applied have made the sign-up process a lot more challenging.

Market saturation

The market seems to be saturated as there are numerous existing users already. Further penetration for potential new users is likely to be difficult as they may already be engaged in gambling activities in one way or the other.

Economic factors

The rising cost of living has affected disposable incomes, making some players cut back on discretionary spending, which includes online gambling activities.

Awareness of problem gambling

The promotion of Safer Gambling Week and the increase in problem gambling awareness has led many to realise that they are gambling in a harmful way. These affected people are now a lot more cautious about signing up for online gambling accounts. Self-exclusion programs, which allow you to voluntarily ban yourself from gambling, have also contributed to the massive decline in new account registration as most problem gamblers are now utilising this feature.

Conclusion

The UK online casino market has experienced steady growth and the recent evolution indicates the market is maturing. Growth will no longer be determined by acquisition but rather retention of new players.

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