UK Gambling Industry Grows to £13.8bn in 2016Published June 2, 2017 by Mike P
UK gambling revenue is getting closer to breaking the £14bn threshold. Get the latest statistics for the October 2015 to September 2016 period.
The UK gambling industry has continued to be one of the most popular in the world despite operators being faced with new challenges, including legislative change and the introduction of a point of consumption tax (POCT). Nevertheless, this has not stopped the industry from generating massive revenue figures across most major sectors.
The latest figures released by the UK Gambling Commission (UKGC) show that gross gambling yield (GGY) reached £13.8 billion for the period of October 2015 to September 2016. This represented growth of 2.98% on the £13.4 billion that was generated from April 2015 to March 2016.
Remote Gambling Drives Increase
Spots betting and iGaming are the two key markets of the remote gambling sector, which was responsible for earning a £4.5 billion GGY. To quantify, this performance represents an approximate 32% share of the £13.8 billion earned across the wider UK gambling industry. Remote gambling was worth £4.2 billion for the previous reporting process.
In the UK, remote gambling has changed dramatically, with operators subjected to more legal and tax obligations compared to several years. However, the figures show that the sector remains competitive and enticing for operators, who are still finding ways to push forward growth in the sector.
The current landscape of the sector is now one where operators must have a licence with the UKGC. And the second most impactful condition is that operators are required to pay a 15% POCT on all of the GGY that they earn from UK residents. While some operators have left the market because of these factors, there are others who have made it work.
Performance of Other Sectors
Fixed odds betting terminals (FOBTs) were one of the most successful sectors for land-based gambling. This assertion is based on the fact that FOBTs £1.8 billion worth of GGY was earned from 176,410 legally registered machines. These were spread across 8,788 betting shops, 583 bingo premises, and 147 land-based casinos.
The GGY is lower for the next major sectors, with sports betting able to reach £1.6 billion from October 2015 to September 2016. Land-based casinos were then able to earn a modest £1.2 billion GGY, while the struggling bingo sector only generated £628.3 million, with bingohalls struggling to draw in players.