Is UK gambling declining? Are new UKGC rules causing a decline? Or is the low GGY in the June UKGC Report due to freedom day? (Photo by Andy Holmes on Unsplash)
The 2021 June UKGC report recently released its most recent market update. The report has shown that there was a combined GGY amounting to $686 million for the gambling industry for the month of June. This is the lowest GGY for 8 months, with the previous low being in November 2020. It wasn’t all bad news though, as there was a growth in playing activity for the summer rescheduled Euro 2020 football Championships – positive, although somewhat expected news for the sector.
However, some are saying that the continuous tinkering of rules and fees by the UKGC may have a negative effect on the market. And there is certainly an element of those willing to make such a statement who have been waiting for a market decline to say ‘I told you so’. Yet, the more likely reasons for any decline are probably due to Freedom Day, with fewer people gambling online. When the Premier League starts up again this weekend and European football leagues get into full swing, we will probably see a huge swing in better once again, while the UK iGaming scene will likely plateau.
The month showed declines in Gross Gambling Yield on each online vertical by a double-digit figure, all except for sports wagering. Sports wagering improved on month by 1%, which brought the total to $334.5million. Despite the betting activity in sports wagering, it wasn’t able to match it Gross Gambling Yield of between January and April, when the country was in lockdown.
The final gambling handle numbers showed a decrease, taking it to a 6-month low, $8.4billion. There was a 10% decrease and an 8% decrease in both online slots and casinos when comparing monthly figures. In February 2021, the UK Gambling Commission released the December 2020, Gross Gambling Yield. In that report, there was a 30.5% increase. The $847.3million figure was mainly caused by turnover in real-events betting.
The Easing of Measures Brings the United Kingdom’s Gambling Industry into a New Chapter
June was a big month for you if you were in the UK. Boris Johnson went through with his promise of relaxing the restrictions that had been affecting the hospitality and leisure industries. 17th June saw gaming facilities that are land-based, like bingo halls, arcades and casinos, unlocked the doors and welcomed walk-in customers again
There was an immediate increase in the number of players playing. That figure increased by 4%, which brought the total number of players to over 11.25 million. These players were predominantly betting on markets associated with the Euro Championships 2020. Sports betting active players rose y an impressive, 9%, to 5.6million. However, the Cheltenham Festival and the historic, Grand National, proved to be more popular markets than Euro 2020. These events happened in both April and in May, they attracted 6 million punters at its peak.
The UK Gambling Commission states that it recognises a new chapter being written across the country. The easing of lockdown measures is not as simple as just going back to the way things were before. Many customers still feel vulnerable because of the Covid-19 pandemic, and the pandemic has cast uncertainty over people’s finances.
Nektan Limited had its License Suspended in April by UKGC
The UKGC suspended the license of Nektan Limited in April. They are a giant in the industry of mobile gaming, offering B2C services. A breach in licensing conditions due to inconsistencies with licensing objectives were the reasons given by the UK Gambling Commission. They were most famous for operating mobile casino and bingo.
There were 5 casinos given penalties in March by the UKGC. Each of these instances was because of breaches in money-laundering security and rules related to social media. Clockfair Limited, Double Diamond, Les Croupiers and Shaftesbury Casino all agreed to a regulatory settlement fee. However, A&S Leisure Limited received a fine to pay and an official warning to go with it.
