UK Gambling and Betting Activities to Drop 17% by 2024

UK Gambling and Betting Activities to Drop 17% by 2024

Revenue from UK gambling and betting activities is set to continue declining in the coming years. Data gathered by GoldenCasinoNews.com indicates that by 2024, revenue from this sector will decline by at least 17%.

Estimates show that by 2024, the revenue will be $70.5 billion, a decline of about 2.9% from the 2023 projections which stand at $72.12 billion. This year, the sector is set to record $79.83 billion in revenue which will later drop in 2021 ($76.98 billion) and 2022 ($73.42 billion)

Generally, gambling and betting sector revenue has been declining since 2012 due to various factors fuelled by a change in legislation. The revenue comes from the UK gambling industry which is divided into sectors like online gambling, bingo halls, casinos, and lotteries.

In 2012, the total revenue stood at $106.56 billion which later grew by 6.7% to record 114.31 billion a year later. Notably, 2013 was the highest revenue recorded by the industry over the last eight years.  Over the last eight years, the sector has only recorded revenue above $100 billion dollars on three occasions only.

In 2014, the revenue embarked on a decline when it recorded $108.92 billion, a drop of 4.9%. A year later, the income further dropped by 13.5% to record $95.96 billion. It is worth noting that during this period, the industry brought in the new legislation.

By the end of 2016, the revenues further dropped to $94.47 billion while a year later the proceeds increased by 6.4% to record $101.02 billion. Over the last two years, the revenue took a dip dive to record revenue of $86.34 billion representing a 14.53% drop.

The UK’s gambling market decline comes at a time when some of the leading gambling affiliates have lost significant value in the stock market between over the last two years. Some of the affected affiliates include Catena Media, XLMedia, Raketech Group, Net Gaming Europe, and Gaming Innovation Group which have collectively lost over 70% in stock market value.

The general decline in gambling revenue

By estimates, the 2019 revenue is set to drop further to $82.29 billion. On the other hand, the 2020 revenue estimates are $79.83 billion.

The projected decline in revenue is set to continue as the UK continues to enact strict regulations such as capping betting limits for fixed-odds betting terminals (FOTB) and a change in payment methods. For example, the UK Gambling Commission in January announced a ban on the use of credit cards for gambling. This move is meant to curb consumers raking in millions in debts.

Additionally, the British lawmakers have begun taking measures to limit the addictive appeal of gambling where a considerable number of online gamblers have been categorized as problem gamblers. Most of these gamblers have racked up debts, something the government seeks to amend through restricting the gambling and betting sector. In a nutshell, the authorities seek to curb catalysts for gambling addiction.

1060 Enterprises will be Affected by Revenue Decline

Furthermore, there are notable fluctuations when it comes to the number of enterprises in the gambling sector by turnover size band. By 2019, there were 90 enterprises with a turnover of more than £5 million. This figure has dropped from 95 recorded in 2018. The lowest figure of enterprises to recorded a turnover of more than 5 million pounds was between 2014 and 2015 when the figure stood at 75.

From the data, most entities recorded a turnover of between £100,000 – £249,999. The highest number under this category was in 2013 when the entities stood at 465. Since then, the number has been declining. In 2014, it dropped by 16.1% when the entities stood at 390. The following year, the number slightly grew by 2.5%. Overall, from this period the number embarked on a steady decline to hit 320 in 2019.

Despite the drop in revenues, entities with a turnover of between £250,000 – £499,999 have remained steady between 2013 and 2019. Seven years ago, the entities were 215, which later grew to 245 the following year. Between 2013 and 2019, the entities have witnessed a drop of 4.8%, one of the lowest compared to other categories.

With this decline in gambling and betting revenue, it means the UK economy might be impacted. For example, the UK gambling industry employs thousands of workers who earn an above-average income, which contributes to taxes.

Therefore, without a significant recovery plan, the economy might be impacted in some way. Additionally, gambling entities such as the National Lottery also give substantial money to charities.

To curb the declining revenues, both regulators and consumers need to balance the different gambling concepts to ensure the industry continues to thrive without causing addition.

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