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THE past 18 months may have proved prosperous for many in the gambling industry, but the casino sector appears to be in the middle of a seismic shift in the way people enjoy its many attractions.
There are currently around 150 physical casinos in the UK and if you think that is a lot, you should bear in mind there are 144 in Las Vegas alone. The effect of the Covid pandemic was verging on the disastrous for those establishments up and down the country, but the UK gambling industry still saw a turnover of £14.3 billion across the 2019-2020 financial year – a significant increase from the previous year.
However, parent company of major UK operator Grosvenor Casinos, Rank Group, reported a £93 million annual loss last month, compared to profits of £21.5 million the previous year. The company that also owns Mecca bingo halls saw net gaming revenue halved to £330 million – the underlying revenue down 65 per cent, informed GamblersPost.
Rank Group chief executive John O’Reilly admitted, “The year was exceptionally challenging for the group and, frankly, we are delighted it is over.”
While the punters were unable to make it to the casino in person during lockdown, they could still play their favourite games online. And those employed in the physical casinos up and down the country face an uncertain future if the gamblers don’t return in their numbers, and in person, to enjoy a bet on the roulette or play a few hands of blackjack.
Early indications are that Grosvenor is facing a challenging time with like-for-like net gaming revenue after reopening on May 17 up to August 15 down 19% on the same 13-week period in 2019 before the pandemic hit. Average weekly revenue since reopening has been £5.7 million, which is slightly ahead of the company’s break-even target, which currently stands at £4.4 million per week.
With reams of entertainment available by pushing a few buttons at home, there are clear indications that the popularity of ‘virtual’ casinos on your favourite gambling firm’s website will in future prove more attractive than a visit to the local gaming house.
According to figures produced by the UK Gambling Commission, there were approximately 11 million people who gambled online in 2019-20, a figure that is rising every year. The rise in online gambling accounted for revenue of £5.7 billion – approximately 40 per cent of the total gambling figure. Online casino games and voucher promotions dominate the sector, generating £3.2 billion in gross gambling yield, GGY, mostly from slots games. And the reason for these numbers is clear. Players do not need to go anywhere, they just need to register on the site. One of the main benefits of online casinos for players is deposit bonuses and free spins.
Online casino gambling has been on the rise over recent years with most gambling websites having their own virtual casinos, with croupiers on hand to provide that traditional casino experience. Online casino revenue in the UK has more than doubled in the last 15 years or so, up from £1.47 billion in 2003 to £3.2 billion in 2019. And the holding 888, hoping for an increase in profits from casinos, even bought William Hill’s European business, a company with a huge history, reports BBC.
And it’s clear why there is still a drive from gambling firms to attract new customers with a range of offers when you see that around half the population of the UK are regular gamblers, and with a third of those preferring to bet online it is a market continuing to grow.
The average Briton spends £2.60 a week on gambling, which adds up to more than £135.20 a year.
