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From Past to Present: Gambling Industry Trends, Regulations, and the Path Forward

From Past to Present: Gambling Industry Trends, Regulations, and the Path Forward

About this project

The Report is published on DatenCule Substack on 27-02-2024.

Contents of Report

1. Introduction

2. Data Observations

3. Analysis

4. Conclusion

5. Data Sources and ReferencesIntroduction

The act of betting money on a game or horse racing is known as gambling (1).

The purpose of this report is to:

  1. Identify which gambling game is earning more profit in terms of Gross Gambling Yield.
    
  2. Patterns and trends in Remote and Non-Remote Gambling
    
  3. UK Gambling Regulations and Future of UK Gambling Industry
    

The term Gross Gambling Yield mentioned above is defined as the amount that gaming operators keep after winnings are paid out but before operational expense deductions is known as gross gambling yield, or GGY (2).

Data Observations

Remote Gambling

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Over the past decade, remote gambling has experienced a substantial surge, with remote betting increasing from 783.31 million in 2008 to a staggering 2288 million by 2023. This trend reflects a consistent upward trajectory in remote betting activity.

Similarly, remote casino gaming witnessed remarkable growth, escalating from a modest 33.08 million in 2008 to a remarkable 4037 million in 2023. The exponential rise in remote casino participation underscores its increasing popularity among players.

Even remote bingo, starting at a modest 0.47 million in 2008, soared to 173.64 million by 2023, illustrating a notable expansion in this segment of remote gambling.

Notably, before 2014, remote betting held sway as the preferred choice among players. However, since 2014, there has been a notable shift, with remote casino gaming emerging as the favored option for many.

Analysing the cumulative gambling yield from 2008 to 2023, it's evident that remote casino gaming has dominated, amassing a total yield of 27277.4, followed closely by remote betting at 23467.75, with remote bingo trailing at 1432.48. This underscores the significant financial impact and widespread appeal of remote casino gaming in the gambling industry.

Non-Remote Gambling

undefinedIn traditional gambling sectors, betting continues to hold its popularity, with casino, bingo, and arcades following suit.

The betting industry, a cornerstone of non-remote gambling, maintained its allure over the years. Starting at 2903 in 2008, it witnessed a slight decrease to 2475 by 2023. Notably, its zenith occurred in 2015-2016, peaking at 3,318, while experiencing its nadir in 2020, plummeting to 1035.

Casinos experienced a notable upswing from 2008 to 2018, only to encounter a downturn from 2019 onwards. However, recent trends indicate a resurgence in casino activity since 2022.

In contrast, bingo has undergone a consistent decline from 2008 to 2023, signalling shifting preferences among gamblers.

Meanwhile, the arcade industry is undergoing a noticeable surge, suggesting a resurgence of interest in this traditional form of entertainment.

Lotteries & National Lottery

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The national lottery has grown to 3490 GBP in 2023 from 2521 in 2008.

Lotteries have seen significant growth as the industry was at 143.69 in 2008 and in 2023 it was at 682.47 GBP.

The Road to Reform: A Timeline of UK Gambling Evolution

A brief synopsis of the UK Gambling History Timeline is provided below: 1960: saw the UK legalize gambling. 2005: The gaming Act targets online gaming and makes significant reforms. 2014: Offshore operators' access to licencing loopholes is closed by the Gambling (Licencing and Advertising) Act. For the societal benefit, lotteries are governed by the National Lottery Act. 2020–Present: The goal of a government review is to modernize gaming regulations (3).

Inflation Rate from 2008-2023

Despite a sharp increase in inflation in 2022 and 2023, gambling behavior is still on the rise. This illustrates the requirement for further safeguards to prevent people from engaging in gambling. Gambling may be used as a coping mechanism by some, which emphasizes the need to resolve this problem.

Analysis

The future of gaming regulations in the UK will present both fresh possibilities and challenges as technology develops. Regulations may need to be changed in light of the growing popularity of augmented reality (AR) and virtual reality (VR) gaming, as well as new developments like cryptocurrency gambling. It is only now that the UK government is putting rules governing smartphone gaming into effect. This implies that legislation addressing topics like taxation on cryptocurrency casinos may not be introduced for some time. Future legislators will need to give careful thought to how to maintain a competitive and inventive gambling sector while still protecting consumers (4).

The UK government finally revealed a much-needed review of the country's gambling legislation on December 8, 2020. The White Paper was released on April 27, 2023, and during the ensuing years, a combination of primary and secondary legislation, modifications to Gambling Commission regulations, and voluntary action will be used to execute the ideas. The Gambling Commission released its first round of consultations on July 26, 2023. The topics included are: (i) age verification in establishments;

(ii) designing remote games;

(iii) direct marketing and cross-selling; and

(iv) vulnerability assessments and financial risk assessment for remote operators.

The UK government released an open consultation on ideas for an upper limit on bets for online slot machines on the same day. Early in 2024 is when the outcomes of these discussions are anticipated (5).

With the development of data analytics and artificial intelligence (AI), authorities now have more ways to keep an eye on online gambling companies and identify irregularities or potential risks. Regulators can more easily spot patterns of questionable conduct, such as potential fraud, thanks to AI systems' real-time data analysis capabilities. Regulators can use data analytics and artificial intelligence to protect vulnerable players and maintain the integrity of online gambling enterprises. Technological advancements such as biometric identification, geolocation services, and facial recognition give regulators powerful tools to verify players' locations and identities. These developments in technology ensure that users are connecting to regulated and licenced platforms that comply with local laws and encourage responsible gaming (6).

Conclusion

The rapid advancement of technology and the changes in the social and economic structures that support the gambling industry will likely lead to additional changes in the direction of gambling laws. New gambling experiences could be brought about by the emergence of emerging technologies like augmented reality (AR), virtual reality (VR), and the Internet of Things (IoT). This will call for sophisticated regulatory solutions to handle the special opportunities and difficulties that these technologies provide (7).

Data Source

https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fassets.ctfassets.net%2Fj16ev64qyf6l%2F1KQrjlZVVLkY8Q6y8jUsNo%2Ff68a49edd112769d379aaf89d4b3cac6%2FExcel_Version_Nov_23.xlsx&wdOrigin=BROWSELINK

https://www.statista.com/statistics/270384/inflation-rate-in-the-united-kingdom/

References

  1.  [https://dictionary.cambridge.org/us/dictionary/english/gambli](https://dictionary.cambridge.org/us/dictionary/english/gambling)ng
    
  2. https://www.statista.com/statistics/203379/gross-gambling-yield-by-sector-in-the-uk-since-2009/
  3. https://playtoday.co/blog/guides/gambling-laws-uk/
  4. https://www.islandecho.co.uk/uk-online-gambling-laws/
  5. https://iclg.com/practice-areas/gambling-laws-and-regulations/united-kingdom
  6. https://europeangaming.eu/portal/compliance-updates/2023/06/14/137436/the-future-of-online-gambling-regulation-in-europe/
  7. https://www.primedope.com/navigating-the-flux-the-evolution-of-global-gambling-legislation-and-regulation/
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