UKGC Data Reveals Key Gambling Market Facts
A 2021 briefing for government, released via a Freedom of Information request, highlights the concentration of revenue and the dominance of the online market.
A 2021 Gambling Commission briefing, released under a Freedom of Information request, reveals the evidence presented to the government ahead of the Gambling Act Review. The data highlights the dominance of the online market, the concentration of revenue from a small number of players, and the high profitability of online slots.
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A key document prepared by the Gambling Commission (UKGC) for the government in 2021 has been released, providing a snapshot of the evidence used to inform the Gambling Act Review. The 'Five Facts on the Gambling Market' briefing, disclosed following a Freedom of Information (FOI) request, reveals the extent of market concentration and the critical role a small number of customers play in generating industry revenue.
Context: A Briefing for Government
The document was originally prepared in 2021 for discussion with the Secretary of State. Its purpose was to provide a high-level, data-led overview of the UK gambling landscape as policymakers considered wide-ranging reforms. The release of this fact pack gives consumers and researchers insight into the foundational data points that shaped the subsequent White Paper and ongoing regulatory changes.
The Five Key Facts Revealed
The briefing, dated from the period leading up to the Gambling Act Review, outlined five core realities of the market. While the data reflects the market as it was in 2020-2021, the trends identified remain central to the UKGC's regulatory focus.
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Market Size and Concentration: The total Gross Gambling Yield (GGY) was £14.1 billion (year to March 2020). The online sector was highly concentrated, with the ten largest operators accounting for over 70% of the online GGY.
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The Shift to Online: The document highlighted the rapid acceleration of online gambling. Between 2015 and 2020, online GGY grew by more than 50%, while revenue from land-based sectors like betting shops and casinos experienced a decline.
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Dominance of Online Slots: Online slots were identified as the most significant single product category. They generated approximately 70% of online GGY, making them by far the most profitable online gambling product for operators.
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Concentration of Customer Spend: Perhaps the most critical fact for consumer protection, the data showed that the top 5% of online customer accounts (ranked by spending) generated around 50% of the total GGY. This demonstrates that a small minority of players are responsible for a disproportionately large share of industry revenue.
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Scale of Marketing: The industry's marketing power was noted, with over £1.5 billion spent on advertising and promotion in the year to March 2020. This level of expenditure was a key point of discussion regarding its potential influence on participation and harm.
Why This Data Matters
For consumers, this disclosure confirms several key trends that directly impact their experience and safety. The data on concentrated spending—often referred to as the 80/20 rule, where a small percentage of customers drive the majority of revenue—is central to the debate on affordability checks and player protection. It underscores the financial incentive for operators to retain high-spending players, who may be at greater risk of harm.
The dominance of online slots as a revenue driver also explains the regulatory focus on these products, including measures like stake limits and slower spin speeds introduced in the White Paper. The data provides a clear, factual basis for the regulatory direction taken by the UKGC and the government. By understanding these market dynamics, consumers can better appreciate the risks associated with certain products and the importance of the consumer protection frameworks being implemented.