After a challenging year in 2023, the UK sports betting market is facing a difficult outlook for 2024. The rise in gross gaming revenue (GGR) has been primarily attributed to online casinos, leading to concerns among industry experts and analysts about the health of the UK sports betting market.
David Brown, a veteran of the UK bookmaking industry for over four decades, expressed his concern, stating that he has never been more pessimistic about the market’s health. Reports of declining operating profits from major operators like Bet365 and 888/William Hill, as well as the downgrade of Entain’s stock by investment bank Goldman Sachs, have all contributed to this sense of uncertainty about the future.
The publication of the White Paper in April 2023 has also caused significant concern, particularly regarding the introduction of affordability checks in 2024. Many industry experts fear that these checks may drive punters to the black market due to their intrusive nature. The polarisation of views between the Gambling Commission and the industry has led to debates about the accuracy of the GC’s estimate that only 3% of accounts will be subject to these checks.
The potential impact of these checks on regular punters, coupled with the rise of illegal gambling operators, highlights the need for intervention and regulatory measures to address this growing issue. The black market has seen a significant increase in recent years, with illegal operators targeting vulnerable players and exploiting loopholes to subvert self-exclusion strategies.
Despite these challenges, there are bright spots in the regulated sector, particularly in the rise of retail sports betting. Playtech Sports, a leading player in the industry, has seen a significant increase in retail traffic through its Self Service Betting Terminals (SSBTs), offering speed, convenience, and the same transactional speed as online betting.
Industry veterans like Lee Drabwell believe that retail sports betting still has plenty of potential for growth in 2024, with the demand for digital-first experiences and innovative features driving customer engagement and attracting new customers. With the right investments and continued focus on digital experiences, the retail sports betting sector may be able to overcome the challenges it faces in the coming year.