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Posted by Harry Kane on Friday, November 16, 2018

In truth, the growth of the UK’s online gambling market remains one of the economy’s worst-kept secrets. After all, this sector grew to account for a staggering 35% of the gambling industry in the year ending 2017, while the market’s gross gaming yield (GGY) peaked at £4.7 billion during the same 12-month period.

So while online operators may be facing short and long-term uncertainty against the backdrop of Brexit and an increase in the rate of Remote Gaming Duty (RGA) payable from October next year, there’s no doubt that for now, they continue to diversify and expand at a grow at an exceptional pace.

This growth is largely being driven by demand, but what exactly are the most popular gambling activities in the current marketplace? Here’s a breakdown according to the latest findings published by the UK Gambling Commission (UKGC).

A Look at the Headline Numbers

The most recent figures, which were published in February of this year, initially revealed that 45% of Brits aged 16 or above have participated in at least one form of gambling during the previous four weeks.

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While this represents a marginal decline of 3% in relation to 2016’s figures, it’s interesting to note that the amount spent by gamblers on average has increased during the same period.

This suggests that although the number of active casual gamblers may have declined during the last 24 months or so, those who wager more frequently are willing to spend more on their chosen pastime.

In terms of the demographic split, it’s estimated that 48% of men have gambled in the UK. There’s little doubt that online gambling is becoming increasingly popular among women, however, with 41% having wagered through this medium in 2018.

Overall, approximately 33% of the nation’s gamblers lay down wagers at least once a week, with this number growing incrementally as online casinos and sports betting outlets become increasingly accessible to punters.

This is where the bulk of the industry’s revenue comes from, as loyal and returning customers offer considerable value to operators over the course of their lifetime.

What Types of Gambling Are the Most Popular Online?

We spoke earlier about the online gambling GGY, which increased by an impressive 10.1% in the year ending September 2017.

With similar, double-digit increases forecast over the course of the next five years and beyond, it’s interesting to explore this growth in greater detail and determine which gambling activities are the most popular.

Unsurprisingly, it’s casino products and games (including video poker) that dominated the online marketplace, claiming a whopping 56% share of the total yield. This includes classic casino disciplines such as blackjack, roulette and slot games, along with less revered titles like baccarat and craps.

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If we drill deeper into this number, however, we see that virtual slots have evolved to account for nearly two-thirds of the online casino GGY by themselves. In total, 64.5% of all casino revenue is generated by the market’s rapidly growing library of slot games, with traditional table games trailing miles behind with a paltry 15.8% share.

Card games fared even worse with a market share of just 12.1%, while pokers’ relative demise continued as it accounted for just 5.9% of the virtual GGY.

Beyond casino gameplay, it should come as no surprise that sports betting is also a popular pastime online. Although it trails well behind casino games with an overall market share of 56%, it still accounts for 37.1% of the online gambling GGY and remains a huge source of revenue for operators across the UK.

This particular market niche is dominated by football and horse racing, which when combined account for 51% of all money generated by sports betting. The football betting sector has enjoyed particularly impressive growth over the course of the last decade, as the number of markets has increased and concepts such as in-play wagering have become increasingly popular.

According to the most recent statistics, an estimated 25% of gamblers will have placed this type of bet during the last four weeks, with in-play wagering appealing to both casuals and those who like to gamble impulsively.

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The eagle-eyed readers among you will have noticed that together, casino gameplay and sports betting combine to account for 93.1% of the online gambling GGY. As a result, the remaining online betting activities claim less than 7% of the overall market, including bingo and exchange betting.

Activities such as bingo are also seeing marginal decreases in their popularity, so the argument remains that casino and sports betting will become increasingly dominant in the future (with slot gaming and football wagering undoubtedly leading the way).

The Last Word – What Does the Future Hold?

On a final note, it’s interesting to note that the number of active online customer accounts improved by around one-quarter to 28.7 million in the first quarter of 2018.

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This may seem at odds with the fact that the number of active gamblers is thought to have fallen slightly, but it’s important to understand that the average customer owns approximately four unique accounts.

In terms of future activity, we should also take the time to recognise the arrival of new gambling activity in the form of eSports betting. During the last 12 months, an impressive 6% of Brits have wagered on one or more eSports events, with this burgeoning number expected to increase rapidly over the course of the next two years.

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This is part of a global trend, with the world’s eSports betting market expected to peak at a value of $23.5 billion by the end of 2020. When you consider that is worth a paltry $315 million just three years’ ago, it’s clear that eSports betting is likely to be a key contributor to the online GGY both in the near-term and long into the future.