UK Online Gambling Revenue Rises 7% Despite New Limits

The UK’s online gambling industry is defying expectations — and new restrictions.

Despite tighter stake limits and risk checks, the British online gambling market posted 7% annual growth.

This resilience shows the sector’s adaptability and hints at deeper shifts in player behavior and market dynamics.

Let’s unpack the latest Gambling Commission report, explore the trends, and assess what it means for the industry.

UK Online Gambling Booms Despite New Restrictions: What’s Driving the Surge?

3 Key Points

• UK online gambling revenue rose 7% year-on-year, reaching £1.45bn despite new regulations.
• Online slots led the surge, with an 11% rise, while real-event betting also saw gains.
• The land-based gambling sector continues to decline, dragging overall GGY down 5.2%.

Online Gambling Surges Despite Regulatory Headwinds

The British Gambling Commission’s latest report paints a striking picture of the gambling market.

For the quarter ending March 31, online gambling’s gross gambling yield (GGY) climbed to £1.45bn, up 7% year-on-year.

This happened despite two major regulatory changes:

• New online casino stake limits introduced in September
• A pilot program of financial risk checks targeting high-spending players

Online Slots and Sports Betting Drive Growth

Online slots continue to anchor the digital gambling boom.
Slots GGY rose 11% year-on-year to £689m, although it fell 2.9% sequentially.

The number of slot spins reached 23.4 billion, up 6% year-on-year.
Active monthly accounts hit a record 4.5 million, also up 6%.

Meanwhile, real-event betting posted a 5% rise in GGY, reaching £6.5m.
Favorable outcomes for bookmakers during the Cheltenham Festival helped boost these figures, even as wager volumes declined.

Land-Based Gambling Falters

While online gambling thrives, the land-based sector struggles.
Total GGY across all gambling segments fell 5.2% to £1.45bn, mainly due to retail weakness.

Key land-based numbers:

• Retail betting yield fell 3% year-on-year to £554m, with bets dropping 5%.
• Over-the-counter bets decreased 6%, though GGY held steady at £152m.
• Self-service betting terminals (SSBTs) saw a 1% decline to £125m.
• Gaming machines posted a 5% fall to £276m, despite stable session volumes averaging 130 spins.

Notably, the UK’s all-time GGY record remains Q4 2020, when COVID lockdowns pushed revenue to £1.66bn.

Regulatory Conversations Continue

The Gambling Commission isn’t slowing its push for reform.
Executive Director Tim Miller announced that the consultation on land-based gambling reforms will now run until June 3 (extended from May 20).

Speaking at the Bingo Association’s AGM, Miller stressed:

“The starting point for alternatives should aim to achieve the same policy objectives. There is no going backwards when it comes to consumer safety.”

This signals that the Commission will welcome industry feedback — but it won’t compromise on its consumer protection goals.

What’s Behind Online Gambling’s Resilience?

Several factors explain why online gambling keeps rising:

• Player shift to digital platforms for convenience and variety
• Aggressive marketing and bonuses by operators
• Increased mobile gaming adoption, especially among younger audiences

Operators have also become more sophisticated in managing compliance, helping them adapt to new stake and risk rules without major disruption.

The UK online gambling sector’s 7% growth, despite new restrictions, shows the industry’s resilience and adaptability.

However, the continued decline of land-based gambling reveals deep structural changes in player preferences.

As the Gambling Commission advances its reform agenda, operators will need to balance innovation with compliance.

One thing is clear: the UK’s gambling market is transforming fast — and only the most agile businesses will thrive in this new landscape.