Updated to include October 2015 to September 2016

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Headline findings Executive summary Industry overview

Appendix: Terminology

Contents

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The headline findings in this report indicate areas of interest across the industry or within each sector, highlighting large percentage changes or changes in trends.

Headline findings

Total Gross Gambling Yield (GGY) of the

Great Britain gambling industry (Oct 2015 – Sep 2016)

Total GGY for the Remote Sector (Oct 2015 – Sep 2016)

Total number of employees in the

Great Britain gambling industry (Sep 2016) (0.4% decrease from Mar 2016)

Market share of the remote sector (Oct 2015 – Sep 2016)

Total number of betting shops

in Great Britain (Mar 2017) (1.4% decrease from Mar 2016)

Total number of gaming machines in Great Britain (Oct 2015 – Sep 2016) (0.2% decrease from Apr 2015 – Mar 2016)

(excludes those requiring only a local authority permit)

Total number of bingo premises

in Great Britain (Mar 2017) (5.7% decrease from Mar 2016)

Contributions (to good causes) from

The National Lottery (Oct 2015 – Sep 2016) (5.7% decrease from Apr 2015 – Mar 2016)

Total number of casinos in Great

Britain (Sep 2016) (1 fewer than Mar 2016)

Contributions to good causes from

large society lotteries (Oct 2015 – Sep 2016) (9% increase from Apr 2015 – Mar 2016)

£13.8bn £4.5bn

106,678 32%

8,788 176,410

583 £1.7bn

147 £231.8m

Total number of licensed arcades in Great Britain (Mar 2017) (5.3% decrease from Mar 2016)

1,729

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Executive summary

This Industry Statistics document provides a half-year update to the regular analysis of the Gross Gambling Yield (GGY) in Great Britain, which this time totals £13.8bn. This is the total figure reported by operators who are licensed and regulated by the Gambling Commission. Aggregated information is presented by sector and also includes information about gaming machines and social responsibility. The gambling industry demonstrates continued growth in most areas with the exception of bingo and the National Lottery.

Remote gambling (mostly online) is the largest sector and has been regulated by point of consumption in Great Britain since November 2014. This sector constitutes 32% of the overall market and £4.5bn GGY. Within the remote sector, casino games have generated the highest turnover and £2.4bn in GGY, predominantly through slots games (£1.6bn). GGY for remote betting, including betting exchanges and pool betting, totals £1.9bn and is dominated by football and horses.

The National Lottery and non-remote betting continue to represent two of the other largest sectors. National Lottery sales were £7.4bn for the period October 2015 to September 2016 (a 3% decrease compared to the year prior) while returns to good causes were £1.7bn (6% lower than in the previous 12 month period). We continue to work with Camelot to maximise the returns to good causes.

In terms of non-remote, the betting sector (including machines) has grown slightly, accounting for £3.4bn GGY. Before machines revenues are included, betting GGY increased slightly to £1.6bn, driven by off-course ‘other’ (including non-sporting events such as the Brexit vote). On-course racing continues to decline, now constituting £26m GGY. Pool betting has increased by 6% to £134.2m, with an increase in horses more than counteracting the continued decline in football. Machines have increased their percentage share of betting GGY relative to over-the-counter GGY; currently representing 56% of the total with £1.8bn. Total betting premises have again decreased to 8,788, falling by 1% in each of the last three periods covered.

Bingo games GGY has decreased slightly to £371.6m, matched by a similar decrease in bingo machines GGY to £310.7m (the first decrease since 2010). The number of bingo premises continued its decrease shown in our last publication, down to 583.

The previous reduction in casino games GGY has been dramatically reversed, increasing by 23% to £987.7. This is driven by punto banco, up from £23.3m, (the lowest reported GGY to date) to £213.6m. In contrast, blackjack has seen another decrease from £203.7m to £187.6m. Electronic gaming, a growth area within casinos, has increased again and currently stands at £166.1m.

Adult Gaming Centres show a slight increase in GGY, now reporting £346.7m, up from £340.4m last time. Increases can be seen in Category B3 and Category C machines. Licensed Family Entertainment Centres demonstrate a continuing decrease since 2014/15, now reporting a GGY of £65.9m.

This data does not include Unlicensed Family Entertainment Centres which operate using a permit from the local authority.

Large society lotteries, historically the smallest market share, have seen a GGY equivalent increase to £404.2m, a growth of 8%; with balance to good causes at £231.8m, the highest reported to date and up 9% on the previous year.

The overall number of gaming machines across the industry decreased slightly to 176,410, but with a continued increase in machine GGY in all sectors, except bingo, and in most machine categories except for B4 and D. Betting shops continue to generate the highest machines GGY at £1.8bn. Across all sectors, B2 machines have generated £1.8bn GGY.

This report reflects headline findings that describe the current gambling market and is accompanied by a detailed data file.

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Table 1: Industry GGY by sector (£m)

During the period October 2015 - September 2016, the regulated GB gambling industry generated a gross gambling yield (GGY) or equivalent3 of £13.8bn, an increase of 2.9% compared with the year prior.

Gross gambling yield

3 GGY equivalent for the National Lottery and large society lotteries is total proceeds minus total prizes.4 The figure represented reflects seven months data under the Gambling Act 2005 from 1 April 2014 to 31 October 2014, and represents the whole regulated market (regardless of where the customer was based).5 The figure represented reflects five months data under the Gambling (Licensing and Advertising) Act 2014 from 1 November 2014 to 31 March 2015, and relates to GGY from GB based customers from both GB based and non-GB based operators providing gambling services in GB.6 New remote reporting arrangements came into force on 1 November 2014 (as a consequence of the Gambling (Licensing and Advertising) Act 2014). From this point, non GB based operators providing gambling services in GB were required to hold a GB operating license. Changes arising from the new legislation mean that the most recent data relating to the remote market cannot be treated as continuous with earlier data.

Industry overview

Betting (non-remote)

Remote betting, bingo and casino (previous legislation)

Casinos (non-remote)

National Lottery (remote and non-remote)

Bingo (non-remote)

Remote betting, bingo and casino (new legislation)

Large society lotteries (remote and non-remote)

Apr 2013 – Mar 2014

Sector

Total

Apr 2014 – Mar 2015

Apr 2015 – Mar 2016

379.11 385.65 409.43

3,176.77 3,276.66 3,316.75

673.44 670.85 688.58

1,111.06 1,159.54 998.24

1,134.66 753.53*

1,474.06** 4,229.88

3,099.80 3,232.10 3,416.80

293.79

9,868.62

349.74

11,302.13

378.73

13,438.41

Arcades (non-remote)

Sep 2016Oct 2015 –

412.58

3,406.48

682.29

1,189.90

4,461.26

3,265.37

404.20

13,822.08

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Figure 2: Licensed activities held by sector

Figure 3: Premises by non-remote sector

Licensing authority premisesIn addition to premises used by licensed operators, there were 53,395 premises where gambling is permitted and controlled by licensing authorities. Data on non-Commission licensed premises can be found in Licensing authority statistics.

Figure 1: Industry GGY by sector

3%Arcades

3%Large society lotteries5%

Bingo

9%Casinos

25%Betting

24%National Lottery

£13.82bnAll sectors GGY Oct 2015 - Sep 2016

32%Remote

5%Bingo

1%Casino

78%Betting

16%Arcades

11,247 non-remote premises

as at Mar 2017

7%Gambling software

5%Bingo

2%External Lottery Managers

1%Casino

17%Arcades

17%Lottery

15%Gaming Machine Technical

14%Remote

3,758 Licensed activities

30 Sep 2016

22%Betting

Across GB, there were 11,247 gambling premises used by licensed operators in March 2017* a decrease of 259 (2.3%) since March 2016.

As at 30 September 2016 there were a total of 2,853 operators licensed by the Gambling Commission, 276 of which operate across more than one sector. Between them, those operators held licences that entitled them to conduct 3,758 activities (a 0.8% decrease on the previous period).

Gambling premisesLicensed operators

*casino data is from Sep 2016

Appendix – Terminology

Account – an account represents an entity (for example, public limited company, limited company, partnership, individual) that holds an operating licence.

Adult gaming centre (AGC) – an arcade comprising a limited number of B3 and B4 machines and an unlimited number of category C and D machines. No one under the age of 18 is allowed to enter.

Betting exchange – also known as a “betting intermediary” means a person who provides a service designed to facilitate the making or acceptance of bets between others.

Breaches of self-exclusion – includes the number of times any self-excluded customer has attempted to gain access to operators’ facilities, attempted to gamble, or actually gambled. It is not limited to an attempt to gamble, and includes attempts to enter premises or access online gambling facilities.

Casino drop and win data – is provided voluntarily by casinos (licensed by the Commission) on a monthly basis, and shows the amount of money exchanged for chips in a casino (drop) and the amount retained by the casino (win). The latest drop and win is on our website.

External lottery manager (ELM) – a person or body that makes arrangements for a lottery on behalf of a society or Local Authority of which they are not a member, officer or employee. A society or Local Authority may employ an ELM to promote all or some of its lottery.

Family entertainment centre (FEC) – an arcade comprising unlimited category C and D machines. Under 18s are allowed in FECs but not into the area offering category C machines.

Gross gambling yield (GGY) – the amount retained by operators after the payment of winnings but before the deduction of the costs of the operation.

Licence – an account may incorporate one or more licences. There are three types of licence that an operator account can hold and these are non-remote, remote and ancillary.

Licensed activity – a licensed operator may be authorised to carry out one or more licensed activity. A licensed activity is the actual type of gambling function permitted through an operating licence in a particular sector such as bingo or a lottery.

Numbers – is the term used to capture virtual content and lotto style games such as ‘49’.

Pool betting – is wagering where the winnings are determined with reference to the total stakes placed on that event.

Proprietary GGY – GGY retained by remote operators which is not subject to a revenue share agreement (ie is completely retained by the individual operator).

Regulatory returns – a means of collecting a range of information from licence holders within the gambling industry in order to monitor compliance with gambling legislation, regulations and the licence conditions and codes of practice, and to inform the Commission’s understanding of the industry.

Remote – remote gambling is defined by the Gambling Act 2005 as gambling in which persons participate by the use of remote communication including: the internet, telephone, television, radio and any other kind of electronic or other technology for facilitating communication.

Revenue share GGY – revenue share is defined as GGY which is subject to a contractual arrangement to be shared between two or more Commission licensed operators.

Sector – there are six industry licensed sectors regulated by the Commission – arcades & gaming machines, betting, bingo, casinos, lotteries and remote & gambling software (which includes remote betting, bingo and casinos).

Self-exclusion – is an agreement between an individual and an operator whereby the operator takes all reasonable steps to refuse services or to otherwise prevent an individual from participating in gambling at their premises or by using their facilities. The minimum period of self-exclusion is six months.

Turnover – the amount accrued through the sale of their product (bingo book/betting slip/lottery ticket/software etc) before winnings and overheads/expenses are deducted.

Responsible statisticians:

Andrew Dixon Senior Officer – Analyst (Industry Statistics Specialist)

Chris Rogers Senior Manager – Analytical Lead

For further information or to register your interest in the Commission please visit our website at:www.gamblingcommission.gov.uk

Copies of this document are available in alternative formats on request

Gambling Commission Victoria Square House Victoria Square Birmingham B2 4BP

T 0121 230 6666

F 0121 230 6720

E info@gamblingcommission.gov.uk

Gambling CommissionPublished May 2017