Sports betting dominates UK-licensed remote market
UK Gambling Commission figures reveal sports betting makes up 78% of GGY as total online market reaches £832m
Sports betting makes up more than three-quarters of UK-licensed online gambling gross gaming yield (GGY), according to the latest report compiled by the UK Gambling Commission.
Figures released by the regulator show GGY for the vertical amounted to £649m for the 12-month period ending March 2013 “ up on the previous year’s £564m and a 78% share of the total £832m GGY generated this year by UK-licensed operators. When including sports pools and sports exchange betting, this rises to £788m “ 95% of total GGY.
In contrast, bingo remained the worst performing vertical despite an improved performance as GGY increased from £2m to £2.5m, while casino recorded a GGY of £41.7m, more than double the £20.2m recorded during the previous 12 months.
Despite online gambling revenues from football-related bets rising more than 40% from £5.4bn to £7.8bn, its GGY declined from £281m to £267m. Conversely, horse racing, the second most popular sport, saw revenues fall by 2% to £1.9bn but GGY rise by 28% to £118m.
The Commission estimated that Great Britain’s UK-licensed operators contributed around 4% to the global online market.
UK-licensed GGY is set to rise dramatically next year, however, as the UK government moves closer to implementing a point of consumption regime during the first half of 2014.
At present, the majority of UK online gambling activity is regulated offshore and the Gambling Commission estimates less than 15% of UK consumer GGY is generated under Commission-issued remote gambling licences.
“Under the proposals set out in the Gambling (Licensing and Advertising) Bill, the proportion of global remote gambling GGY conducted under a British licence will certainly increase from the current estimate of 4% as activity in the British market will come under a Gambling Commission licence,” a Commission spokesperson said.
Earlier this week, the Bill left the House of Commons and headed to the House of Lords for further scrutiny before its expected Royal Ascent in late January.