July 9, 2018, 9:26 am

Has increased compliance damaged the growth of the UK online gambling industry?

by: The Financial Blogger    Category: Make Money Online
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The UK Gambling Commission (UKGC), the organisation responsible for regulating the UK gambling industry, provides the latest gambling statistics and details on each individual sector in the overall gambling scene. The details and statistics are directly obtained from the license holders in the regulatory returns.

Generally, data from the UK gambling industry is released in the months of May and November every year, and the latest statistics show us that the industry is on the rise and steadily increasing revenue.

Tim Miller, the CEO of UKGC commented that the “latest statistics are proof that the gambling industry in the UK is continually generating exponential growth, even more so via the online sector”.  He also stated that the growth has a factor of massive responsibility attached to it and addressed the need for those operating in the gambling industry to protect their customers from the negative effects that come with gambling.

Mr. Miller also stated that as the regulating body of the UK gambling industry, their focus is on the protection of the consumers, therefore creating a safe, transparent, and stable gambling environment to ensure that customers are well-protected.

This is where online casinos such as MoneyReels.com as are a nice change of pace, offering safe and secure platforms for which customers of the gambling industry have peace of mind.

According to statistics from the period of April to March 2017, the UK gambling sector had a total Gross Gambling Yield (GGY) of £13.7 billion, which rose by 1.8% in comparison to the prior 12-month period, with the online sector of the industry rising 10.1%, with a total yield of £4.7 billion.

Another statistic found was that of the number of individuals employed in the industry, there was a 1% decline from March 2016, and the betting shops declined by 3.9%.

Also, land based bingo halls are also on the decline, having dropped 1.4% since September 2017.  Arcades, as well, have fallen approximately 5.1%.  However, gaming machines registered in the UK have increased exponentially.  The National Lottery has also been noted contributing £1.5 billion, which is a 16.9% decrease from the prior year.  This is contrary to the large society lotteries whose contributions and donations rose a massive 20.5%.

With all of the statistics floating around, it would seem that the industry as a whole is growing, but local implications are declining.  Online sectors of the industry seem to be where most of the market growth is stemming from, which may signify a change in the market, and even total reinvention of the gaming sector as a whole.

As far as the gambling industry goes, an emphasis has been put on protecting the customers and ensuring that they do not suffer too seriously from the negative effects that gambling can enact.  This limits the overall revenue that a gambling business can bring in.

Despite all things, the online betting companies are the stars of the industry.  With online casinos experiencing a spike in numbers and all physical betting services experiencing a declining, it’s safe to assume that people are spending more time gambling online, and less time on actual gaming machines.  Whether that simply stems from the convenience of online gaming versus having to get up and go out, or if it’s simply because individuals feel they have better chances on an online game, the statistics show that online gaming is where the future of gaming lies.

With the registrations amongst online sites climbing rapidly day by day, one could probably bet that a continued decline in the bingo premises, arcade halls, and the machine registration of physical gambling industry outlets will be steady, eventually leading to the culmination of online gambling being the leader in annual gambling industry yields.

This is all theory, however, based on statistic reports by the UK Gambling Commission.  Many sites, such as aforementioned Money Reels,  may, more than likely, see a massive spike in registering individuals who flock to online gaming as declines in physical gaming premises continue.  Whether this is an opportunity for would-be investors to climb aboard the UK gambling sector gravy train is yet to be seen, but odds are good that it is a gamble that would pay dividends, excuse the pun.

What this means for the industry, as a whole, is still a toss-up.  Either this spells massive revenue for the online sector of the industry and a monumental dip in the physical premises, or it’s just a alienation from the normal pace of things.  In the swing of things, most industries see hills and valleys similar to this and usually the scheme of business will return to normal, but, on occasion, things do shift and tides will change.  The question that begs to be asked at this point in time is, do we embrace the change, or do we fight it?  As most of us won’t have stakes in whichever route the tide flows, it may not even be a question that we ask ourselves.  But, those that have a stake in the UK gambling sector may begin to re-evaluate their positioning in the market and the preferred sector of the gambling industry that their stakes are resting on.

As a whole, the statistics are not as entirely conclusive as they initially appear to be.  There seems to be perpetual growth in the industry, no matter which sector is experiencing the spike in customers and revenue and regardless of the even tighter compliance restrictions.  With the minor dip in employees, bingo premises closing, and arcades, it’s probably a rather safe presumption to say that employment in the gambling industry may be a tad unstable for a short time.  However, even with that being said, it’s not far-fetched to assume that the physical sector will experience a spike, resulting in its ascension once again.

Keep a close eye on the overall statistics and observe any changes in the aforementioned data before drawing in concrete conclusions.  Things tend to develop and change rapidly in the world of business, and with our ever-changing society, it’s anybody’s guess as to which sector of the gambling industry will come out on top, land or online.

Image source unknown. Found through Pinterest.

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