According to new statistics published by the UK Gambling Commission (UKGC), the online sector, or the “remote gambling” sector if you will, took the lead in the UK gambling market in 2016, accounting for 33% of the overall gaming and betting sector. Online operators also scored the highest gross gambling yields (GGY) in the past year.
As the stats show, online gambling operators had an annual GGY of £4.5 billion between the period of April 2015 – March 2016, surpassing even the National Lottery, which reached a GGY of £3.4 billion. The third highest earner was the high street betting sector, with £3.3 billion in GGY, while brick-and-mortar casinos had the lowest GGY, or £1 billion. The biggest earnings in the online gambling sector came from casino games, which generated £2.6 billion, while sport betting revenue was significantly lower, or £1.6 billion. On the other hand, online slot games accounted for £1.8 billion.
According to the UKGC report, the land-based sector saw a significant decline this year, with loses suffered in both the bingo and sport betting segments. The biggest decline was noted in the number of bingo venues, which dropped to 575, or 4.3% less than last year, while sport betting shops dropped by 1.8% to 8,709 and B2 gaming machines by 0.9% to 34,884. The decline in physical locations was, normally, reflected in the number of employees in the overall gambling market, which dropped by %1.5 to 104,896.
According to James Green, the UKGC’s programme director, the latest industry data is a reflection of the “creative approach” the industry is taking by employing technology to attract players. However, he also adds that online operators will need to clearly show a similar creative approach to ensure online gambling remains safe for all users.