A Review of the UK iPoker Market in 2015

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Monday, January 11th, 2016 | Written by Adam Brown

In 2015, the UK online poker industry went through a number of important changes, with new regulations, mergers between major operators, and companies exiting the market all helping to shape what was a dramatic year for the country’s iPoker landscape. While there were some negative impacts from the upheaval, most of what transpired has had positive effects or is expected to in the future. Overall, the online poker industry in the UK seems to be much stabler than it’s been in several years, which is good news for providers and players alike.

Regulations Prompt Response

The UK’s gambling market is one of the biggest in the world, and has continued to expand steadily over the past few years. In 2010, for instance, the industry generated £5.6 billion in revenues, which by 2014 had grown to an impressive £7.1 billion. Much of the increase in revenues is directly related to the increasing popularity of online gambling products, with mobile devices also providing a lucrative area for operators.

As a result, at the end of 2014 the UK instituted a new licensing system to regulate iGaming sites operating within England, Scotland, Wales and Northern Ireland. In addition to having to pay licensing fees, sites were also required to pay a 15 percent consumption tax on gross revenues. News of the changes initially spurred outrage among iPoker operators, players and gaming industry lobbyists alike, and the Gibraltar Betting and Gaming Association subsequently took legal action to contest the legality of the new law. Court objections went in favor of the UK, resulting in many operators suspending business in the UK or reshaping their strategies to invest more heavily in other countries.

Major Mergers

Because of the impact of the new regulations, a number of online poker operators in the UK have agreed to merge and consolidate their assets. Gala Coral and Ladbrokes merged in a £2.3 billion deal, while Betfair and Paddy Power unified with a £5 billion agreement. GVC also opted to buy bwin.party for £1.6 billion. Only time will tell if this will end up having a positive or negative impact on the iGaming industry, but so far, most experts feel it will be a good move for both the operators involved, as well as for the players themselves.

PokerStars Partners with Sports Celebrities

While other operators were busy merging and buying one another out, PokerStars set its sights on promoting its site with the help of a number of big name celebrities. PokerStars signed deals with Christiano Ronaldo and Neymar Jr., two of the most celebrated soccer players in the world. Ronaldo has appeared at PokerStars tournaments, in commercials and on posters for PokerStars in the UK, while he and Neymar are now both involved with marketing the site in the EU.

HUDs Being Phased Out

Another major change in the UK’s iPoker industry was the limiting of heads up display (HUD) use, with the hope of eventually phasing out their prevalence online. The changes currently underway in the UK seek to make game play more fair for all players, especially those who are new to online poker, and those who play only casually on an infrequent basis. Leading the way in this regard are such sites as PartyPoker and PokerStars. In addition, Full Tilt has also eliminated high stakes tables and overhauled the table seating process, so that players are randomly assigned to tables and cannot be singled out and followed by so called “bum-hunters”. Most industry experts believe that sites will continue to make similar improvements and changes during 2016.

End of the Online Pro

The changes mentioned are designed to make the online poker arena a more attractive place to play for amateur players, without which the game cannot grow. In addition, PokerStars, the world’s biggest poker site, even revamped its Rewards Program to ensure that the rewards usually offered to its numerous online players would now be diverted towards programs biased towards recreational players. This prompted a major backlash by online grinders who organized a three-day boycott of the site at the beginning of December, with more planned in the future.

Rather than forcing PokerStars to reconsider its strategy, however, the site’s VP of Corporate Communications Eric Hollreiser, instead, praised the improved state of playing environment for its amateur players, stating:

“During the three-day boycott we recorded the healthiest consecutive three-day ecosystem results of the year with steady net gaming revenue, even though our net-depositing players lost at a much lower rate than they have all year.”