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Read Full BioThe UK Gambling Commission (UKGC) released its Q1 2025 earnings of £1.45 billion earlier this week, which included a 7% year-on-year increase in its online gross gambling yield (GGY).
Observed between January and March earlier this year, its GGY growth indicators come amid a flurry of regulatory changes to the sector and a sizable market shift towards digital betting platforms.
UKGC Post 7% Q1 Online Gambling Growth Amid Digital Shift
As a result, online gambling continues to gain pace, further escalated by rising user engagement and sustained consumer demand within the division. This was demonstrated by the 5% surge in the total number of online bets and spins from the same period last year, up to 25.2 billion.
Digital slots led the advance of the online activity, posting a GGY increase of 11% year-on-year, hitting £689 million in total. Monthly active account numbers rose 6% to a record 4.5 million, leading to over 23.4 billion spins.
As active user numbers increased, so did player engagement levels as session lengths grew. By way of an indicator, online slot activity sessions lasting over an hour jumped by 5% to 10.1 million – although the average session duration did not fluctuate, remaining steady at 17 minutes.
In addition, real event betting also saw GGY gains, as wagering climbed 5% YOY to over £596 million, despite the number of bets and active accounts declining by 1% and 2%, respectively.
Q1’s highlight was the Cheltenham Festival, one of the UK’s premier horse racing events. This event boosted activity during the quarter, fueled by race results that undoubtedly favored operators this year.
High Street Gambling Faces Headwinds in Q1
Conversely, while the industry’s online revenue results were promising, the retail betting sector faced less favorable headwinds. Licensed Betting Operator (LBO) GGY fell by 3% to £554 million in Q1, with the number of bets and spins dropping 5% to the 3.1 billion mark.
Furthermore, over-the-counter (OTC) gambling was also hard hit, with the segment observing a 6% decline in volume despite the market’s GGY plateauing at £152 million. Meanwhile, self-service betting terminals (SSBTs) also saw a minor dip in Q1 revenue, with a 1% reduction, down to £125 million.
This characteristic swing in consumer wagering methods marks a worrying trend for physical betting venues. Whereas bettors still frequent high street and in-person casino venues, the sizable user shift towards the omnipresent mobile app and online sportsbook platforms is inescapable.
As part of the Q1 earnings report, the UKGC also corrected elements of its historical data. One instance of this was their choosing to reclassify statistics from the casino to slots verticals, attributed to the individual strength of the slots market.
While UKGC’s Q1 2025 total GGY of £1.45 billion is some way off topping its pandemic-driven peak of £1.66 billion in Q4 2020, its latest figures show a burgeoning market despite the additional regulatory changes the sector faces.
