Online slots growth drives Great Britain online GGY up 7% in Q1

UK Online Slots GGY Reaches £689 Million in Q1 Amid Overall Gambling Growth

The Great Britain Gambling Commission has reported a significant 7% year-on-year increase in online gross gambling yield (GGY) for the first quarter, largely driven by remarkable double-digit growth in the online slots sector.

According to the latest data released on Wednesday, the total GGY for the three months ending 31 March 2023 reached £1.45 billion ($1.93 billion). This figure represents an increase from £1.34 billion in the same period last year, though it falls short of the £1.54 billion recorded in Q4 2022 by 5.8%.

This growth in GGY was supported by a 5% rise in the overall number of bets and spins, tallying up to 25.2 billion. Furthermore, the average number of monthly active accounts witnessed a 2% increase, reaching 13.5 million, indicating sustained engagement from players.

Each quarter, the Gambling Commission publishes comprehensive data concerning Britain’s regulated market, which encompasses both online gambling and insights into land-based betting sectors.

Slots GGY Hits £689 Million

Zooming in on online performance, slots represented a substantial 47% of the total online GGY in Q1, with revenue soaring to £689 million. This marks an impressive 11% enhancement compared to the previous year’s figures.

During this quarter, consumers engaged in a staggering 23.4 billion spins, a 6% uptick from last year, while the average number of active accounts climbed 6% to reach a record high of 4.5 million. This development highlights the growing popularity of online slots among players.

Additionally, players dedicated more time to their favorite slot games. The total number of online slots sessions lasting over one hour increased by 5% to 10.1 million, with average session lengths holding steady at 17 minutes. Approximately 6% of all sessions extended beyond one hour, mirroring the previous year’s statistics.

Real Event Betting GGY Rises by 5%

In another segment of the market, online real event betting GGY rose by 5% year-on-year to reach £596 million. This increase is notable, given the 1% decline in the total number of bets and a 2% decrease in average monthly active accounts. Real event betting constituted 41% of the overall online GGY during this period.

Other gaming categories, including online casino games, generated £138.3 million in GGY—slightly down from £138.7 million the previous year, with total bets dropping by 9%. Notably, online poker experienced a significant downturn, with GGR decreasing by 19.9%. Similarly, virtual betting GGY saw a decline of 12%, amounting to £9.2 million, while esports betting GGY decreased by 26% to £3.2 million.

Declines in Land-Based Betting

The quarterly report also provided insights into the performance of licensed betting offices (LBOs), revealing a 3% decline in GGY to £554 million, accompanied by a 5% reduction in total bets and spins, totaling 3.1 billion.

Retail gaming machines led the GGY in this sector, contributing £275.7 million, though this figure fell short by 5% compared to the previous year. Over-the-counter GGY showed a slight increase at £152.5 million, while GGY for self-service betting terminals dipped 1% to £125.4 million.

Overall, total machine sessions in Q1 were 5% lower at 22.6 million, although the number of sessions lasting over one hour increased by 4% to 613,062, suggesting a shift in player behavior.

Retail Decline Mirrors Operator Performance in Q1

The continued decline in UK retail betting and gaming aligns with the earnings reports of tier-one omnichannel operators for Q1. For example, Entain reported a 1% year-on-year drop in net gaming revenue (NGR) for its UK & I retail business, attributing the “lighter volume” to changing consumer behaviors.

Entain’s CFO, Rob Wood, noted that the softer results in retail are indicative of players predominantly shifting toward online platforms, further solidified by double-digit growth in online gaming across the UK.

Similarly, Evoke experienced a downturn in its UK & I retail segment, with revenue falling 6% to £123.1 million, primarily driven by a 9% drop in sports betting revenue resulting from lower stakes.

This comprehensive data provides crucial insights into the evolving landscape of the UK gambling market, highlighting the continued growth of online sectors against the backdrop of declining retail betting performance.