UKGC Report Shows Drop in British Gambling Revenue

  • Total UK gambling revenue for October 2018-September 2019 was £14.26bn, 0.5% YOY drop
  • Online gambling revenue for the period fell by 1.8%
  • Reduced FOBT max stake from £100 to £2 forced gambling premises, betting stores to close
  • National lottery sales were up 3.9% to £7.49bn
Man explaining line graph on laptop
A new UKGC report reveals that overall gambling revenue in the UK dropped 0.5% to £14.26bn for the 12-month period ending September 2019. [Image: Shutterstock.com]

Total revenue down slightly

The United Kingdom Gambling Commission (UKGC) has issued new revenue figures for the overall gambling sector in the region.

For the 12-month period spanning October 2018 through September 2019, gross gambling yield dropped 0.5%. Online gambling revenue also fell 1.8% year-on-year.

The gaming regulator cited the struggles of retail gambling facilities as the main reason for the decline

Total market revenue for the period was £14.26bn ($17.6bn), per the UKGC’s Thursday report. The gaming regulator cited the struggles of retail gambling facilities as the main reason for the decline.

Retail operations dropping

The number of operational gambling premises during the 12-month period contracted by 9.6%, finishing at 9,745 premises in total. A particular problem for betting shops was the slashing of the maximum allowable stake on fixed-odds betting terminals (FOBTs) from £100 ($123) down to £2 ($2.46).

When the change took effect in April 2019, the number of betting stores fell 12.1% to 7,315. As a result, revenue from Category B2 machines decreased 46.4% to £624m ($769m).

The revenue from Category B3 gaming machines tumbled 18.5% to £1.3bn ($1.6bn). Overall gaming machine yield was down 11.8% in total, to £2.5bn ($3.08bn). Land-based casino revenue fell by 0.6% to £1.05bn ($1.3bn). 

Online gambling revenues also sliding

Online gambling gross yield for the period was £5.51bn ($6.8bn), a year-on-year drop of 1.8%. Of the total, £3.19bn ($3.9bn) came from online casinos, £2.12bn ($2.6bn) was from sports betting, and £198.1m ($244m) was generated by bingo. 

The number of new accounts fell 5.6% to 31.5 million

By the end of September 2019, there were 30.2 million player accounts with the UK’s licensed operators, a 2.7% drop from March 31, 2019. The number of new accounts fell 5.6% to 31.5 million during the same period. 

There was a rise in national lottery sales, a 3.9% bump to £7.49bn ($9.2bn). Of this sum, £4.3bn ($5.3bn) was given back to players in the form of prize money. £1.58bn ($1.95bn) was given to various causes and £901.7m ($1.1bn) went to lottery duty. 

£304.3m ($375m) was given to retailers as commission. Camelot, the lottery operator, ended up with £395.9m ($488m). Other forms of lotteries, both offline and online, combined for sales of £775.6m ($955m). 

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