Home Business Insights & Advice Analysing a decade of steady business growth in the casino industry

Analysing a decade of steady business growth in the casino industry

by John Saunders
17th Mar 20 2:10 pm

Casino players and their game has evolved a lot in the past twenty years. It has gone from only being able to play their favourite slots at a brick and mortar casino, to a complete mobile experience switch.

The rise and development of online casino websites has seen more players enjoying the commodity from their home and playing on their PC. For most people, even those that are currently in their 40’s, this was impossible to imagine while growing up.

The question is-how did the casino industry fair the past year? Have the improvements in technology and software helped to grow the business?

The impact on the economy

The growth of the casino industry certainly has an impact on the economy. The GGY (Gross Gambling Yield) in the UK increased from £8 billion in 2011 to approximately £14.5 billion. Since legislation for remote gambling changed in 2014, the GGY for remote gambling accounts for the largest share on the market. This industry provided jobs for 100 thousand employees in the UK of which the majority works in the betting sector, followed by casino and bingo.

Despite the substantial level of jobs and roles in this sector, it is worth mentioning that most casino businesses were run with less than ten people. This imposes that the business is flexible and adaptable.

Opportunities are online

However, the closer look on the data with a focus on the UK shows distinction between online and land-based casinos. By shifting the focus to remote casinos which include websites, mobile phones or other online gaming services, we can see a significant data difference. The total GGY for the remote casino category for the period of 2018/2019 shows a 5.8% increase.

While many business sectors have been struggling to adapt and transform in the digital era, the casino industry has been moving upwards since 2009. In 2015, the global gaming market was worth nearly £31 billion.  By the end of 2020, it is estimated to be worth nearly £49 billion. These are great news for game providers who will continue to develop and improve their offers.

How do people today place bets?

Perhaps one of the main factors for the casino industry growth are the number of options. Players today have more possibilities than ever on how they want to play. Even when you visit a land-based casino, it is possible and easy to play online.

In 2018 there were more than 36 million active customer accounts. All of them were registered at facilities approved and licenced by the UKGC.  While you may assume that many of them were inactive players, research showed that more than 30 million players have been actively playing online. This shows that people are taking advantage of this possibility, and the economy is already seeing the great business potential.

There are many different online platforms that people can play on. Casino sites provide information about different possibilities, benefits, and no deposit bonus offers.  As well as obtaining the latest updates and information, sites like these also help in eliminating bad practices and rouge market operators. This is important to know because a recent research showed that trust in casino games has improved over the past five years, with many players becoming aware of unfair practices.

Government changes and practices

The UK Government has taken measures to ensure that the growth of the gambling industry is constant and fair, while eliminating issues with fixed-odds betting terminals. The Government has increased the tax for online gaming throughout 2019. At the same time, operators were required to lower the maximum stake limit on fixed-odds betting terminals.

With these measures, the tax revenue will be reduced by £1.5 billion over the next five years. Taxes on gaming operators located outside the UK are planned to be increased in order to cover potential losses. It is unclear how these changes will influence the growth of this industry. Many experts suggest business restructuring, while some companies will struggle to obtain the positive revenue curve.

Conclusion

It is pretty obvious that casino games are experiencing their golden hour in the UK. This undoubtedly happens due to the available technology and online space potential for growth. It will be interesting to analyse how far this industry will spread over the next decade, and whether government changes will have an impact on the business growth.

 

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