Part 1: Executive summary
Part 1
Executive summary
The UK at a crossroads The regulators play a strong hand
The benign backdrop for the UK online gambling The changing regulatory landscape at play within
market since the introduction of the Point of the UK market is the most treacherous it has been
Consumption (PoC) regulatory and tax regime for operators since the introduction of the PoC
at the tail end of 2014 has helped sustain an regime.
impressive period of market growth.
However, the latest figures from the UK
Alongside the reviews currently underway
on the part of the Competition and Markets
Gambling Commission for the year to September Authority (CMA) and the Information
2016 at the very least suggest the market is Commissioner’s Office (ICO), there remains
going through a period of being tempered. A the threat from the government’s long-delayed
combination of regulatory and macroeconomic and much debated Triennial Review, which has
factors has combined with the sporting calendar included for the first time a review of gambling
to produce a feeling that a slowdown in growth is advertising on TV.
either taking place right now or is in the offing.
The total market size is still impressive with
gross gaming yield (GGY) for the 12 months to
September hitting £4.5bn, but following revisions
We also will see in August the imple mentation
of the PoC on bonuses, which is likely to have an
effect at some level on revenues in the sector.
The degree to which these various moves
to the figure for the year to March 2016, the affect the sector will play a large part in the
growth rate for the intervening period now stands sector’s short and medium-term prospects.
at around 5%.
A market still consolidating
Spanish and Danish overviews
The maturing Spanish market remains on course
Much of the comment from market experts to break the €500m gross gaming revenue (GGR)
suggests the trend towards consolidation that barrier this year despite a slightly disappointing
to date has brought us such market goliaths as first quarter.
Paddy Power Betfair, Ladbrokes Coral and the
The damage was done in February when
much augmented GVC will continue regardless of both casino and sports betting revenues for the
the direction of the overall market from here. month took a dive below the six-monthly average
Scale now counts more than ever in the UK
for both products. March saw a rebound and
and the prospective benefits from the operational provided enough evidence that the growth path
gearing gained via M&A continue to be attractive. had been resumed, although this market will also
Most obviously, we can expect more deals
in the online gaming space where competition
from smaller and more nimble competitors would
suffer from a summer without a major football
tournament.
Despite its much smaller population, Denmark’s
appear to be one reason the larger sports betting- regulated online market continues to keep pace
led brands are not capturing what they would with Spain with total revenues for 2016 coming
deem to be their fair share of the pie. in at just under €400m compared with Spain’s
iGaming Business Market Monitor • June 2017
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