Online gambling is becoming increasingly popular throughout the world. Major UK gambling operators recorded higher profits in 2015 and the trend is ongoing.”
Casinos have been around for quite a while now. The first casino, even though back then it wasn’t called a ‘casino’ but a gambling house, in the UK was established back in the 17th century. The first contemporary casinos were enabled by the 1960 Betting and Gaming Act.
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Sometime at the beginning of the 21st century we witnessed the birth of a new phenomenon, a new type of casinos – online casinos. And the popularity of online casinos in the UK and elsewhere spread like wildfire. People all over the country are playing their favourite casino games on their computers, tablets and smartphones.
Regulated by the UK Gambling Commission
There are many online casinos that provide services to UK citizens. Valuable information on many of them is freely available here. Online gambling in the UK is fully legal and it is regulated by the UK Gambling Commission (UKGC). Operators that have obtained appropriate licences, which are issued by the UKGC are free to provide gambling services, as long as they pay their taxes.
Increased Tax Revenues
Until November 2014, online operators licenced in EU countries and some other jurisdictions which were white-listed by the Gambling commission were also allowed to offer online gambling in the UK. But under the new regulations, all operators were required to obtain UK remote gambling licences and pay taxes on UK incurred gambling revenues in the country.
The government realised that the online industry is growing and that they shouldn’t miss on such an opportunity. Moreover, the players also benefit as they get an increased level of security and protection.
More People Are Gambling Online
And the numbers back up everything that we’ve said so far. Just look at the following few facts:
- The percentage of adults who gamble online rose from 9.7% in December 2008, up to 5% in December 2014;
- Online slots turnover grew from £86 million in 2010 to over £405 million in 2013;
- UK gambling operators spent £118.5 million on TV advertising in 2015, compared to mere £82 million in 2012;
- The total remote gross gambling yield for the 12-month period ending September 2014 was £1.37 billion.
All Operators Recorded Increased Online Revenues
Each year, major UK gambling operators record increased online gambling revenues and profits. The online gambling market share is steadily increased, even though the conventional gambling and betting revenues aren’t in decline.
William Hill
William Hill is one of the oldest UK betting operators. The company expanded into the online casino industry as soon as it saw the potential. According Final Results Report for 2015, the company’s online revenue was more than one third of their total revenue. The online net revenue for 2015 was £550.7 million compared to £527.4 million in 2014, which is a 4% increase.
The increase may not seem that large, but it should be noted that the overall revenues for 2015 suffered a small decrease compared to the previous year.
Paddy Power Betfair
2015 was a particularly good year for Paddy Power and Betfair, two companies that merged towards the end of last year to form Paddy Power Betfair. The newly founded company is now one of the largest betting and casino operators on the UK market.
Paddy Power registered double digit growth in online revenues in 2015. The online profits, excluding Australia, amounted to €72.9m, which is 41% of the overall profit. The online profits of the company’s Australian division were up by more than 50% compared to 2014.
888
888 offers only online gambling and related services. This operator registered a 13% increase in the number of registered accounts. Similarly, the revenue rose by 12%, amounting to $508 million. The price of the company’s shares has also increased. This year’s records show that the average revenues per day have increased by one fifth compared to last year.
Bet365
Bet365 is another online-only gambling and betting operator. The company is currently the largest employer in Stoke-on-Trent, where it is headquartered. It is also the owner of the football club Stoke City. The company registered record revenues of £1.5 billion in 2015, a 5% increase compared to 2014. The operating profit of the company rose by 11%, from £406 million to £456 million.
Bet365 is one of the fastest growing companies in the industry. It is opening its first satellite office in Manchester which will employ 70 people. Earlier this year the company signed a new deal with Stoke City FC which gives the company the naming rights for the Britannia Stadium. In the future it will be known as the bet365 Stadium.
