UK Gambling Sector Booming Due to iGaming and FOBTs

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Thursday, September 21st, 2017 | Written by Shane Larson

Over the last 10 years or so, the UK Gambling sector has significantly increased its size, largely due to the popularity of online gaming among its local customers. Another reason for its exponential growth is that its market was given a more liberal appeal under the Government of Prime Minister Tony Blair (1997 to 2007), and the gambling regulation and legislation his party introduced.

Online Gambling

The Gambling Act of 2005 represented a significant milestone in the history of the UK’s gambling market as it allowed gambling operators to gain access to their potential customers from the comfort of their own homes via online sports betting, casinos and poker, as well as enabling greater market penetration through gambling advertising on television. Furthermore, the popularity of online gambling has become even more widespread in recent times because of the rise of mobile gaming, and gambling sites adapting their products to provide
mobile-friendly alternatives for their customers.

Illustrating the increasing importance of the online vertical to their operations, in 2016 the UK generated £13.8 billion in gross gambling yield, of which online gambling was the largest segment of the industry with revenue of £4.5 billion over the reviewed twelve months period, up from the previous year’s tally of £4.2 billion.

Fixed-Odds Betting Terminals

In addition to gambling online, fixed-odds betting terminals (FOBTs) located in bookmakers on the high street have also had a major impact on the industry. In fact, FOBTs have experienced a 73% surge in customer spending since 2009, and last year the 34,388 machines spread out across the UK produced a collective £1.8 billion in revenue. Despite attracting much criticism on account of their link to problem gambling behavior, these terminals have nonetheless started an entirely new era in the UK’s gambling industry, as they allow gamblers to place bets of up to £100 for every 20 seconds that they play.

£13.8 billion Industry

According to a UK Gambling Commission report, profits by gambling companies and taxes subsequently collected by the government have increase significantly over the past few years. Moreover, the industry generated record revenue of £13.8 billion for the fiscal year ending September 2016, with online gambling and FOBTs playing important roles in the uptick, as well as the country’s National Lottery which was introduced back in 1994. Together, all of these factors are working in favor of the United Kingdom gambling sector, and producing results that are as great for UK customers, as they are for the companies that run the numerous sites. As the UK has one of the most liberal gambling markets in the world, it is also safe to say that these trends are likely only to continue going forward.

Gambling Addiction Concerns

One of the reasons often cited by states or countries for not adopting online gambling, or expanding their current gambling industries is the potential societal problems that can arise from gambling. That is why problem gambling helplines and clinics are set up as a matter of urgency whenever gambling legislation is finally adopted.

Similarly, the UK provides a salient example of these concerns, and according to a UK Gambling Commission report, out of a population of around 65 million people, there are presently around 2 million people who are addicted to gambling, or alternatively are at risk of developing an addiction problem.

One of main organizations set up to help those people with gambling problem concerns is GambleAware, which each year receives £8 million in funding, an amount which the charity says needs to be increased to £10 million due to the rising level of addiction treatment required. Areas of particular concern of late include a more than 30% rise in the number of over-16 problem gamblers to around 430,000 people, as well as an increasing number of people becoming addicted to FOBTs. Commenting upon the situation, Gambling Commission executive director Tim Miller, explains:

“We have a clear commitment to make gambling fairer and safer and these figures show that this is a significant challenge. Success will depend upon us, the industry, government and others, all working together with a shared purpose to protect consumers. The pace of change to date simply hasn’t been fast enough – more needs to be done to address problem gambling.”