The UK’s gambling industry had a blockbuster third quarter in 2024, with online gaming revenues hitting new highs. Fresh data from the UK Gambling Commission paints a picture of a thriving sector, but also raises questions about betting habits and regulation.
Online Gambling Hits Record Highs
Online betting operators had a stellar quarter, with Gross Gambling Yield (GGY) jumping 21% year-on-year to £1.54 billion ($1.91 billion). That’s the highest figure ever recorded for the sector.
More people placed bets than before, with the total number of wagers and spins increasing 8% to 25.9 billion. At the same time, the number of active online accounts climbed 10% to 4.4 million per month. These numbers suggest more users are engaging with digital gambling, with operators benefiting from increased activity.
Online Slots Lead the Growth
One of the biggest drivers of this surge was online slots, which saw a 15% rise in GGY to £709 million. Players were more active than ever, spinning the reels 9% more often, totaling 23.9 billion spins.
But it’s not just the number of bets that increased. Players are spending longer sessions at the virtual slots, with the average session time ticking up to 18 minutes. Sessions that lasted over an hour climbed 6% to 10.4 million, a number that may raise concerns for regulators monitoring problem gambling.
Betting Revenues Climb Despite Fewer Wagers
Online real event betting—mostly covering sports—delivered an even bigger revenue boost, surging 38% to £647 million, the highest level since Q2 2021. However, the number of actual bets placed fell 7%, and active monthly accounts dropped 3%.
Why the revenue spike despite fewer bets? Industry insiders suggest bookmaker-friendly results may have been at play, meaning more bettors lost their wagers than usual. When sportsbooks experience favorable outcomes, their margins increase even if fewer bets are placed.
Brick-and-Mortar Betting Shops See Modest Growth
The UK’s physical betting shops also saw gains, with GGY up 5% to £592 million. However, this growth came despite a 4% drop in total bets and spins to 3.1 billion.
A closer look at the data reveals some key shifts:
- Over-the-counter (OTC) betting GGY rose 4% to £160 million, though the number of bets placed dropped 3% to 130 million.
- Self-Service Betting Terminals (SSBT) usage climbed 2%, but revenue from these terminals soared 32% to £153 million, a record-breaking figure.
- Machine gaming took a hit, with GGY falling 5% to £280 million. The average spend per session dipped slightly to £12.28, suggesting a possible change in player behavior.
Player Interactions on Safer Gambling Rise
As gambling activity increases, so does scrutiny. The report highlighted a 23% rise in safer gambling interactions, with 3.5 million player interactions recorded. The majority came through automated systems, but direct operator interactions also grew 12%, likely due to improved harm detection measures.
In the retail sector, the percentage of machine gaming sessions lasting over an hour rose to 2.73%, up from 2.48% a year ago. This slight uptick might raise concerns about potential problem gambling trends, especially as regulators tighten rules around responsible gaming.
Data Limitations and Regulatory Concerns
The Gambling Commission cautioned that its data covers about 80% of the UK gambling market, meaning actual figures could be even higher. The report also noted that some trends may have been influenced by operator reporting changes, particularly in online slots, where one operator reclassified some products into the slot category.
Still, the broader picture remains clear: the UK gambling sector is growing fast, particularly online. As revenue climbs, so will regulatory pressures. The industry is likely to face closer scrutiny in the coming months, especially around consumer protection measures and potential problem gambling risks.
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