Last year, the BBC published a report showing online gambling related searches in the UK had skyrocketed to an all-time high. The trend began at the onset of the COVID-19 pandemic in 2020. And it has persisted to date.
In this article, we’ll take a look at the iGaming industry’s growth by the numbers. How many casino sites are there? How much tax does the sector generate? Why do they gamble online instead of betting shops?
£6.9 Billion in Annual Revenues
The online gambling industry in the UK generated nearly £7 billion between April 2020 and March 2021. This represented an 18.4% growth from the previous financial year, whose income had been hit hard by the spread of the COVID-19 pandemic.
The industry’s growth towards the end of 2020 and early 2021 was surprisingly not expected. Many experts had predicted online gambling would suffer for at least two years.
Instead, the industry piqued interest from all over the country, with search engines reporting unusually high traffic at online betting and casino sites.
Although there are many reasons iGaming surged fast during the pandemic, the main reason was that it’s an online industry. At the peak of COVID-19, online businesses were performing outstandingly. The online casino sector was no different.
Joining a gambling site like Casino Ultra Online is accessible from home through a mobile device. Any adult in the UK can link their credit card or use a digital wallet like PayPal to make a deposit. Next, they can play a wide range of slots, poker and blackjack games.
More than 2,400 Online Gambling Websites in 2021
Ever wondered how many online casinos and sportsbooks rule the UK market? According to the UK’s official gambling regulator, Britain is home to at least 2,400 iGaming operators.
Although the specific number changes from time to time, 2,439 gambling sites had licenses to ply the UK market in the financial year ending March 2021. The number was a 5.4% decrease compared to the previous year.
For clarity, a significant number of iGaming businesses shut down at the height of the COVID-19 pandemic, especially sports betting sites. But after the government eased restrictions and sports resumed, more companies applied for licenses.
Just Over 10,000 Workers
Lots of people get surprised after learning the online gambling industry employs just over 10,000 people. For such a huge industry with revenues spanning nearly £7 billion, you would think it would involve a lot more workers.
In truth, remote gambling doesn’t require as many employees as betting shops. Think about it. The average online casino does not need pit bosses, waiters, guards, room service employees and chefs.
Sure, it requires web developers, marketers, managers and customer service agents. However, these employees could oversee multiple online casinos at the same time.
That being said, Britain employees more than100,000 people in the gambling industry in general. This doesn’t include people working in Gibraltar, Alderney, Isle of Man and even Malta—where thousands of British citizens run casinos targeting the market back at home.
Market Share—52.3%
The online gambling industry competes stiffly with land-based gambling companies. So far, it is in the lead, controlling 52.3% of Britain’s total gambling market.
Surprisingly, remote gambling overtook land-based gambling only a couple of years ago. In 2018, online casinos and sportsbooks controlled 39% of the market while betting shops were leading comfortably.
Fast forward to 2020 and more than half of UK gamblers prefer to gamble online. According to recent reports, online casinos generate more money than online sports betting.
In 2021, online casinos generated £1.9 billion in gross yields. Most of this money came from slot machines. By comparison, online sports betting garnered £1 billion, most of which came from football betting. Bingo ranked third with an annual income of nearly £100 million.
Annual tax– £2.83 Billion
Unlike many countries around the world, Britain doesn’t tax gamblers. Instead, it generates revenues by taxing gambling operators. Last year, HM Revenue received £2.83 billion from online gambling merchants, a slight reduction from the previous financial year.
As you might have guessed, the decrease in tax income had everything to do with COVID-19. The pandemic affected the sports betting software industry tremendously, leading to near zero revenues for some betting companies.
Online casinos never had to close down due to the virus. As such, most of them performed impressively throughout 2020 and 2021. That said, sports betting eventually recovered. And due to that, HM Revenue’s tax income for the financial year ending March this year is likely to be a lot more than £2.83 billion.
Why the UK’s Online Gambling Industry is Growing Fast
The UK’s online gambling industry is projected to grow rapidly in the next five years. As mentioned, it’s already surpassed betting shops. But what are the reasons driving this growth?
- Growing Demand
There’s no doubt more and more people in the UK have been showing an interest in online gambling. With Google searches skyrocketing and new casinos cropping up monthly, British people want to gamble online.
- Convenience
The main reason demand for remote gambling is growing has a lot to do with convenience. Sure, you can drive a few miles from your home to pace a football bet. But it’s more convenient to place the same bet at the comfort of your own home.
- Quick Banking
Mobile betting companies in the UK allow punters to deposit and withdraw money through a wide range of options. You can use Visa, MasterCard or Maestro for debit card payments.
Or you can use e-wallets like PayPal, EcoPayz and Skrill. There are also options to use Bitcoin, eChecks, bank transfer and gift cards. All you need is to find a site with your preferred payment companies.
Summary
The UK’s online gambling industry might have slumped after the onset of COVID-19. But it still outperformed most industries in the country. The sector generated £6.9 billion in 2021, £2.83 billion of which went to HM Revenue and Customs. These figures will likely rise in 2022 and 2023 as the economy recovers.
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