Will Stricter Regulation Reduce UK Gambling Industry Revenue?

The UK gambling industry is one of the largest in the world. It’s estimated to grow to an annual figure of £10.8 billion in 2024. Stricter regulation of the industry is on its way though, so how could this affect the industry in the coming years?

Whether it is playing your favourite games at online and land-based casinos, betting on sport or trying to win the lottery, gambling in the UK continues to be popular.

Gambling laws have changed over the years with more freedom being allowed. The arrival of online casinos and the use of mobile phones to gamble on means that new legislation is needed to keep up with the times.

There is always a concern about gambling harm and whether players can afford the amounts that are being wagered. Other areas of concern include the offering of bonuses, sponsorship of sporting events by gambling companies and protecting younger players.

The offering of bonuses is an important but controversial part of the UK gambling industry. It’s a highly competitive market and companies are forever battling to win and maintain a good market share. Welcome offers can include new players receiving free bets or spins or money back if their first wager is a loser.

The UK gambling industry is one that is continually changing. Recent years have seen mobile phone technology make huge strides. It’s now possible to use your smartphones to place bets and keep up to date with all that’s going on.

Artificial Intelligence (AI) is also being seen more in the gambling industry. A more immersive experience is expected in the future and gambling companies are spending huge amounts on how best to use AI to create new exciting and profitable games.

Figures from Statista state that UK online gambling revenue will continue to grow in the coming years. They say there will be an annual growth rate of 3.62% between 2024 and 2029. By 2029 the market volume is estimated to be £12.55 billion.

Whether those figures can be achieved may well depend on how strictly regulated the UK gambling industry is. Last year saw the Conservative Government publish a White Paper on gambling reform.

They had included a pledge to reform the industry in their 2019 General Election manifesto. There’s been plenty of consultation on the subject but there has been signs of movement this year.

A hugely popular part of any UK online casino is its slots portfolio. Players love to try their luck on the games and there are some big cash prizes up for offer. Some that have progressive jackpots have the potential of making a player a millionaire on one spin of the reels.

At present, there are no maximum stake limits for online slot games. That is due to change in September 2024 with those aged 18-24 only able to wager £2 on a single game. For those aged over 25, the new maximum stake limit is due to be £5.

Such a move will hit the revenues of gambling companies and not just from reduced stakes on slot games. There will be huge costs incurred in changing all their online slot games to reflect the new limits. When much-reduced stake limits were introduced for gaming machines seen in UK High Street bookmakers, it led to staff redundancies and some shops being closed.

Other measures that may be introduced include restrictions on VIP schemes and stricter affordability checks. One major concern that the industry has is that stricter regulation could drive customers to the unregulated black market.

Doing so would see customers receiving less protection. It would also see customer levels for the licensed UK gambling industry falling and that would also hit revenue too.

The 2024 General Election may well see a change in Government. Whoever wins the election is expected to continue introducing stricter regulation of the gambling industry. Just how this will affect the estimated future revenue figures will be interesting to see.