UK Online Slots Show Impressive Growth in Q1, with Gambling Commission Reporting Overall Market Trends
The latest figures from the Great Britain Gambling Commission reveal a 7% rise in the online gross gambling yield (GGY) year-on-year for the first quarter, largely bolstered by significant growth in online slots.
According to data released recently, the GGY for the three months ending March 31 reached £1.45 billion ($1.93 billion), surpassing last year’s figures of £1.34 billion. However, this figure is a decline of 5.8% compared to the previous quarter’s record of £1.54 billion.
This GGY increase coincided with a 5% rise in the total number of bets and spins, totaling 25.2 billion. Additionally, the average number of monthly active accounts saw a slight increase of 2%, reaching 13.5 million.
The Gambling Commission’s quarterly reports provide crucial insights into both online and land-based betting sectors, illustrating patterns in consumer behavior and market dynamics.
Online Slots Revenue Reaches £689 Million
Delving deeper into the online sector, it’s noteworthy that slots generated £689 million, accounting for 47% of the total online GGY in Q1. This represents an 11% increase compared to the previous year, showcasing the growing popularity of online slot games.
During this period, players engaged in approximately 23.4 billion spins, marking a 6% increase from last year. The segment also recorded a new high with average monthly accounts rising 6% to 4.5 million.
Players are also dedicating more time to online slots, with sessions exceeding one hour climbing by 5% to reach 10.1 million. Average session lengths remained stable at 17 minutes, indicating consistent player engagement.
Growth in Real Event Betting
Moreover, the GGY derived from online real event betting saw a modest growth of 5%, reaching £596 million. Notably, this growth occurred despite a 1% decrease in total bets and a 2% dip in average monthly active accounts, which illustrates a shift towards higher value bets in this segment.
Other gaming categories, including online casino offerings, contributed £138.3 million, slightly lower than last year’s figures due to a reduction in overall betting activity.
However, online poker experienced a decline of almost 20%, with virtual betting and esports betting also reporting drops of 12% and 26%, respectively.
Challenges in Land-Based Betting
On the brick-and-mortar side, licensed betting offices (LBOs) faced challenges, with GGY down 3% to £554 million. Total bets and spins in this sector also fell by 5% to 3.1 billion.
Retail gaming machines generated the highest GGY at £275.7 million but saw a 5% decline from the previous year. On the upside, over-the-counter GGY saw slight growth, while self-service betting terminals reported a small decline.
Total machine sessions in Q1 decreased by 5% to 22.6 million, although longer sessions lasting over an hour did see a 4% increase.
Retail Trends Reflect Broader Market Dynamics
The ongoing decline in the UK’s retail betting landscape aligns with trends observed among major omnichannel operators. For instance, Entain reported a 1% decrease in net gaming revenue for its UK retail division, attributed to shifting consumer habits.
Entain’s CFO acknowledged these softer results, attributing them to a broader trend of players migrating towards the online gaming sphere, evidenced by substantial double-digit growth in online gaming across the UK.
Similarly, Evoke reported a 6% drop in its UK retail business, driven largely by a 9% decline in sports betting revenue due to reduced bet sizes.
Overall, these reports paint a complex picture of the current gambling landscape in the UK, highlighting both the resilience of online segments and the ongoing challenges faced by traditional retail betting establishments.