New UK Gambling Licences Hit Five-Year Low
FOI data reveals a significant slowdown in new remote operators entering the regulated UK market since 2018.
Data from the UK Gambling Commission shows the number of new remote gambling licences granted in 2022 was the lowest in five years. The figures also show a decline in operators surrendering their licences, suggesting a potential consolidation of the UK market.
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The number of new remote gambling licences granted by the UK Gambling Commission (UKGC) fell to a five-year low in 2022, according to data released under a Freedom of Information request. The figures, covering the period from 2018 to 2022, indicate a cooling-off in the growth of the UK's online gambling market.
For consumers, the number of licensed operators is a key indicator of market health, influencing choice, competition, and overall industry stability. This data provides a crucial snapshot of the changing landscape of the UK's regulated online gambling sector.
A Shrinking Pool of New Entrants
The information, disclosed by the UKGC on 9 February 2023, shows a clear downward trend in the number of new companies being granted a licence to operate.
In 2022, the Commission granted just 63 new remote operator licences. This is a 45% decrease from the 115 licences granted in 2018, which was the peak for the five-year period.
The number of new remote licences granted per year was as follows:
- 2018: 115
- 2019: 75
- 2020: 75
- 2021: 81
- 2022: 63
Fewer Operators Exiting the Market
The FOI request also covered the number of operators who voluntarily surrendered their remote licences, effectively choosing to exit the UK market. This figure has also seen a steady decline.
In 2018, 102 operators handed back their licences. By 2022, this number had fallen by nearly half, to just 52.
The number of remote licences surrendered per year was:
- 2018: 102
- 2019: 82
- 2020: 75
- 2021: 60
- 2022: 52
What This Means for Consumers
The declining number of new entrants suggests that the UK market may be becoming more challenging for new businesses. This could be due to stricter regulatory standards and increased compliance costs, which are ultimately designed to create a safer environment for players.
While fewer new operators might appear to limit consumer choice, it can also point towards a more mature and stable market. The simultaneous decrease in operators surrendering their licences could suggest that the companies remaining are more committed and better equipped to operate within the UK's stringent regulatory framework.
For players, this trend underscores the importance of always verifying that an operator holds a valid UKGC licence. The 'churn' of operators entering and leaving the market highlights the dynamic nature of the industry and the need for consumers to choose well-established, compliant gambling sites.