Home » Revenue From Online Games Reports First Decrease in UK
Business

Revenue From Online Games Reports First Decrease in UK

uk

The United Kingdom Gaming Commission (UKGC) reported that the online gambling market suffered a slight drop in revenue, which also dragged the race bets. New figures revealed by the UKGC show a gross game performance (GGY), generated by the UK game market of £ 14.4 billion in the fiscal year ending March 31, 2019.

This represents a slight decrease of 0.3% compared to the 12 months that ended in March 2018. However, the decrease is slightly greater compared to the 12 months that ended in September 2018, in which a GGY was registered of £ 14.5 billion. In May 2020, the next market report of the Gaming Commission is expected to arrive.

The highlight of this latest UKGC report is that for the first time there is a decrease in GGY online. The online segment represents the largest volume of revenue in the gaming market in Great Britain with £ 5.3 billion, that is, 37.1% of the total. This figure represents an annual drop of 0.6%, because sports bets decreased about 11% to £ 1.83 billion, despite the fact that there was an increase in turnover of 2.7%.

The decrease in bets was greater in the horse racing segment, where the GGY fell 15% to £ 522m. On the other hand, Football GGY dropped 4.4% to £ 991m and GGY virtual sports saw a 12.5% ​​drop to £ 68.6m. As for the exchange bets, not included in the general betting statistics, the GGY fell 1.4% to £ 166.4m.

The financial results of the online casino were better, as the GGY increased 6% to £ 3.11 billion due to the improvement in casino turnover by 8.7%. While Bingo GGY had a 7.4% rise to £ 176.1 million, along with pool bets that increased 17.4% to £ 33.7 million.

Although new online account registrations increased from 1,000,000 to 33.3m, active accounts saw a 9.3% drop to 31m. While GGY land bets declined to less than 1% to £ 1.42 billion. Instead, billing rose 2% to £ 8.91 billion. Regarding horse and dog races, decreases in GGY and rotation are reported, but in football the situation was different as reasonable gains were recorded in both categories.

The final UKGC report reflects the market behavior and the results before the maximum bet of £ 2 will be implemented on April 1 in fixed odds betting terminals (FOBT) in street kiosks. As for the betting shop machine, GGY dropped less than 1% to £ 1.83 billion. Although in reality it is the first fall that the machine experiences in 10 years, because the B2 machines decreased almost a third to £ 1.16 billion.
In the B3 machines installed in the betting shops, the result was different. These machines with limited bets of £ 2, reported a quadruple increase of GGY to £ 670.8 million. UKGC said this was due to

“improvements in the way we collect and report granular data for those cabinets that offer games in multiple categories.”

However, there was a 3% drop to 8,320 in the number of betting stores in line with the real estate contraction for the sixth consecutive year. In addition, the contraction has accelerated as a result of the closures of betting shops, due to the fall in FOBT participation in April.

In other market segments, such as the National Lottery, sales increased 4% to £ 7.2 billion. On the other hand, in the casino on land GGY decreased 10.3% to £ 1.6 billion due mainly to the low activity recorded in table games. Also, the land bingo GGY had a decrease of less than 1% to £ 677 million, while the game rooms rose 1.8% to £ 429.6 million.

Source:
https://calvinayre.com/2019/11/28/business/uk-online-gambling-negative-growth/

About the author

Santiago Contreras

Santiago Contreras

I am a professional journalist dedicated to tracking news related to the stock market, business, finance, blockchain and economics. It is a hobby that I share with sports in general, with special attention to tennis, basketball and soccer. I like to offer our readers relevant, entertaining and useful content to help them inform themselves and make decisions every day. Thanks for reading me!

Add Comment

Click here to post a comment

The following GDPR rules must be read and accepted:
This form collects your name, email and content so that we can keep track of the comments placed on the website. For more info check our privacy policy where you will get more info on where, how and why we store your data.