Despite being one of the world’s most famous markets for sports betting, the UK is currently facing significant challenges. David Brown, a veteran in the UK bookmaking industry, expresses deep concern about the health of the sports betting market in the country. The latest earnings reports paint a grim picture for the industry, with bet365 posting a £61.2m loss during its 2022-23 financial year. Other major players in the UK sports betting market, such as 888/William Hill and Entain, have also experienced declining outlooks.
A key contributing factor to the industry’s decline is the UK white paper, which was published in April 2023. The introduction of affordability checks in 2024 poses a significant risk, potentially driving punters to the black market due to the intrusive nature of these checks. The lack of agreement between the Gambling Commission (GC) and the industry further complicates the situation.
The rise of the black market in the UK is a growing concern, with illegal gambling operators increasingly targeting vulnerable players. These operators have seen a significant increase in numbers, reaching 231 in 2023. This has resulted in illegal gambling accounting for 4% of the UK’s online gambling market share and gross gaming revenue. The availability of self-exclusion bypasses and the exploitation of vulnerable audiences have further fueled the growth of the black market.
Despite these challenges, there are opportunities for growth in the UK sports betting sector. The re-emergence of UK retail, particularly through Playtech Sports’ Self Service Betting Terminals (SSBTs), presents a promising avenue for expansion. The convenience and speed offered by SSBTs have attracted customers, leading to increased retail traffic. Investment in retail, especially through Playtech Sports’ SSBTs, is likely to yield positive results in 2024.
Operators that prioritize customer experience and invest in brand loyalty are expected to perform well in 2024. Star Sports is cited as an example of an operator that goes above and beyond to cater to customers. Their approach, which includes acquiring retail estate and pitches at racetracks, has led to success and even larger cash-based bets being placed. Being present in various areas and investing in product offerings and overall betting experience will be key for operators in 2024.
To ensure the industry’s resilience in 2024, it is crucial to bridge the divide between the GC and the industry. Creating a mutual understanding and addressing differences and obstacles will help navigate through the challenges. The industry has demonstrated its resilience in the past and can emerge stronger by embracing effective leadership and clear guidance on regulations.
