UK Online Gambling on the Rise, Thanks to Slots and Sports Betting

Article by : Erik Gibbs Feb 2, 2024

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In the third quarter of 2023, the UK Gambling Commission (UKGC) released data indicating a 4% year-over-year increase in the online total gross gambling yield (GGY), reaching £1.3 billion ($1.64 billion).

This growth is attributed to a notable rise in GGY from slots and real event betting, while GGY in most other verticals experienced a decline. The Q3 figure represents a slight uptick from the £1.2 billion ($1.52 billion) GGY reported in Q2.

The UKGC’s comprehensive data collection, covering approximately 80% of the online gambling market and 85% of the retail betting market, spans from March 2020 to December 2023.

In the recent report, the commission compares online and in-person betting during Q3 2023 (October to December) with the same period from the previous year.

The overall number of total bets and spins surged by 9% year-over-year, reaching a record high of 24 billion. This mark the highest such number for this segment in a single quarter since data collection began in March 2020.

Additionally, the number of average monthly active accounts exhibited a 2% growth compared to the previous year.

Online real event betting achieved a Gross Gambling Yield (GGY) of £468 million ($592 million), marking a 5% year-over-year increase. However, the number of bets and active accounts experienced a 3% decline compared to the previous year, attributed by the UKGC to the occurrence of the FIFA World Cup during Q3 2022.

In the realm of online slots, GGY witnessed a 6% year-over-year boost, reaching £618 million ($782 million)—the highest recorded quarter since the initiation of data collection.

The number of spins also surged by 11%, reaching a new peak of nearly 22 billion. Additionally, the average monthly active accounts demonstrated an 8% increase, totaling four million per month.

Diverse gaming products contributed to the landscape, with other gaming, including casinos, generating £148.5 million ($188 million) in GGY.

Virtual betting achieved a GGY of £11.1 million ($14 million), esports betting stood at £4.1 million ($5.2 million), poker produced £15.4 million ($19.5 million) in GGY, and other gaming activities accumulated £1.2 million ($1.5 million) in GGY.

Examining online safer gambling indicators, the number of online slot sessions lasting longer than an hour experienced a 3% year-over-year rise in Q3, totaling 9.8 million—the highest quarter since the inception of data collection.

The total number of sessions increased by 7% year-over-year, reaching 150.5 million—the highest in a quarter. Approximately 7% of all sessions extended beyond one hour. Despite these trends, the average session length decreased from 19 to 17 minutes during the same period the previous year.

In terms of customer interactions, the total number fell by 2% year-over-year to 2.9 million. Notably, the majority of interactions remained automated, while direct interactions initiated by operators saw a 10% decline.

For offline betting, the Gross Gambling Yield (GGY) from licensed betting operators increased by 0.5% YoY to £563 million ($712 million).

However, the total number of bets and spins decreased by 4% to 3.3 billion. Over-the-counter bets and GGY both dropped by 3% YoY to 135 million and £153 million ($193 million), respectively, marking the lowest figures recorded for licensed betting operators in a quarter.

Self-service betting terminals saw a 10% YoY increase in bets to 39 million, with GGY growing by 17% to £116 million ($146 million).

GGY from machines fell 3% to £293 million ($370 million), and average spend per session dropped by 1% to £12.41 ($15.71).

The proportion of total machine sessions lasting more than one hour fell to 2%, down from 3% in the same quarter the previous year.

The UKGC is investigating the categorization of certain products, which may lead to changes in data between verticals but is not expected to impact overall totals.