Editors Letter
Editor ’ s letter
Welcome to the iGaming Business Market Monitor - September 2016 .
The UK igaming market continues to grow , as the data in this edition of the Market Monitor will show . Its value is set to edge closer to £ 4.8bn , rather than the previously anticipated £ 4.4bn .
This is because the most recent Gambling Commission data published in September 2015 shows UK market GGY above £ 4bn and with the football European Championships having taken place this summer , we can assume that the current rate of growth will lead to a 2016 exit rate closer to £ 4.8bn .
However , there are headwinds : self-exclusion , reality check measures ; and as of next year the taxation of bonusing and new AML rules mean trading conditions for the year ahead will be tougher - and no major summer football tournament .
The pressures of keeping up this growth record will tell and marketing will be where much of the competition will play out between operators . This is borne out by the average percentage of revenues spent by operators on advertising : 27.5 %, when most industry figures suggested 25 % of revenues was the median amount spent on marketing .
In Australia meanwhile much of the focus centres on the good , the bad and the uncertain . First the good , Paddy Power Betfair ’ s Sportsbet continues to lead the charge of the corporate bookmakers , although when Tabcorp-owned Luxbet is taken into account , Tabcorp is still leader in stakes recorded . The bad : William Hill ’ s travails continue , it is still struggling to gain ground after merging its three acquired brands ( Sportingbet , Centrebet and Tom Waterhouse ).
And the uncertain : the state of South Australia is set to introduce its own Point of Consumption tax as of July 2017 and there is a possibility other states will follow suit or that a federal bill will be tabled , calling for a nationwide PoC to be introduced .
And finally to Spain , where the DGoJ ’ s latest figures show the critical role online slots and roulette play when it comes to the viability of a regulated market .
As ever we hope you find the information in the upcoming pages useful and don ’ t hesitate to send us feedback should you wish to .
Jake Pollard Report editor
iGaming Business Market Monitor – UK , Australia and Spain • September 2016 1