Record Revenue for UK Gambling Industry in 2014Published June 30, 2015 by Mike P
The UK gambling industry surpassed the £7.1 billion mark in 2014 before licensing and taxation changes were introduced by the close of the year.
December 2014 is the month that the UK Gambling Commission finally introduced the long-discussed point of consumption tax (POCT). Online gambling operators are now legally required to have a UK Gambling Commission (UKGC) licence and also to pay 15% POCT on earnings.
Some operators moved quickly to obtain their licences, accounting for 19% of all gambling revenue generated in the UK gambling industry for the 12 months ending September 2014. For those 12 months, operators were not legally required to possess a licence. Although POCT began in December, UKGC licences were first required in November.
Revenue Increases 5% to Reach £7.1bn
The UKGC has been presenting its figures over strange periods of time, and it revealed financial figures for the 12 months ending March 2014. Over that period of time, it was revealed that the UK gambling industry was worth £7.1 billion (excluding National Lottery revenue). That represented a 5% increase for the industry on the previous 12 months.
From the £7.1 billion, land-based betting generated the lion’s share with 46%. Online sports betting, online casinos, bingo, arcades, and social lotteries then accounted for 19%, 16%, 9%, 5%, and 5%, respectively. Out of those markets, bingo (5%) and arcade (5%) revenue actually decreased.
Sports betting remains the most dominant of the online markets, having generated £1.19 billion worth of gross gambling revenue. Football betting comprised 56% of the revenue, making it the largest betting category over all of the others.
Leading UKGC Operators
A wave of UK gambling operators left the market after the new licensing requirement increased their costs, but the fact of the matter is that most operators that left did not have particularly strong sites in the first place. As a result, the overall standard is now higher. Current leading operators now licensed in the UK include bet365, Bet Victor, and Winner.