Which is more popular in 2024-2025 - online versus offline gambling in the UK?
The UK gambling landscape is still undergoing change as consumers' behaviours are evolving and novel technical developments are being introduced. With growing evidence, by late 2024 online gaming has evolved into the dominant form compared to the offline world, as popularity and economic significance is rapidly increasing for online gambling. This trend is happening in Devon, as well as across the country.
Online gambling: A sector on the rise
UK internet gambling market has new peak values as a result of its digitalisation, and product and service growth. The total gambling industry generated a Gross Gambling Yield (GGY) of ₤15.1 billion, between 2022 and 2023, which is an increase of 6.8% compared to the previous year. This rise was primarily attributable to online casino sites, specifically online slot games, which is the highest contributing type of game. As casino expert Joe Hernandez highlights in his review article, most big operators offers various types of online slot games, reflecting this popularity quest.
Participation rates also underline the shift toward digital platforms in Devon. As per the Gambling Commission recent statistical information, 48% of adults continued to engage in online gambling in the preceding four weeks of the survey, an increase from 19% in 2018. The availability and ease of online live gambling are an important factor in this. Betting is ever more accessible through the enhancement of mobile applications and advertising. The past two years has seen an increase in the number of active online gambling accounts, and the amount of funds held in online gambling accounts rose by 3.6% compared to 2023, totalling in £877.5 million.
Offline gambling: Steady but diminishing
Although the physical gambling market has yet to regain its pre-pandemic importance, its market share has not been able to restore its share of the market. Land-based gambling produced a GGY of £4.5bn in 2024 according to the Gambling Commission, which represents only moderate recovery, yet also depicts a shrinking market. The number of physical visits has meanwhile decreased for betting shops, casinos, and bingo halls, etc. Overall the number of betting shops reduced to 7,681 shops as of 2020, and this trend kept on declining for a couple of years.
In-person gambling participation rates have also slipped. Compared to online gambling, a decreasing number of adults gambled physically in 2024. In a comparative way, offline gaming is seen to be less innovative, as it is more driven by traditional demographics, instead of innovation.
Factors driving the divide
Among the many factors that can explain the growing popularity for online gambling instead of in-person gambling, the trend has especially been fuelled by the appeal of online gambling:
- Convenience and accessibility: Players can through the internet take a shot at gambling in their own home or while on holiday. With the growing mobile penetration, which is bringing digital operators' range beyond temporal and spatial boundaries, players can access entertainment right when they want to.
- Variety of offerings: Looking at activities from virtual sports to live dealer gaming, the range of online gambling activities offered is certainly far greater than the range to be found in most brick-and-mortar casinos.
- Targeted marketing: In the online sphere, companies have employed data-driven marketing to start and sustain the players' attention e.g., by providing personalized rewards.
Nevertheless, multiple other influences pressure the outlook for offline gaming, for example the "cost-of-living" crisis currently in process, resulting in a reduction in expenditure. There is a substantial subpopulation of gamblers who state that the possibility to gamble online makes it inexpensive and available to gamble, which consequently makes them turn away from gambling trips to a physical casino.
A changing regulatory landscape
Regulation has been an important driver in both areas. Given a growing pressure of regulation, particularly on online operators, the Gambling Commission is becoming more and more restrictive in its control. Programs have been implemented focusing on compulsory affordability verification and downscaled promotion, combined with fairness rules of gambling. These measures could be a potential influence on the growth for especially the small operators.
Offline casinos also have challenges, including high cost of operation and the restriction of advertisement in-person. However, some are now introducing challenges to these boundaries with hybrid offerings, which bring the physical venues and the online platforms closer.
Looking ahead: Online gambling’s growing dominance
The data cannot lie: Online gambling is the winner of the duel. With the ongoing enhancement of digital technologies, online gambling will continue to surpass the conventional offline gambling more. Experts are estimating that the UK online gambling market will continue to grow at a compound annual growth rate (CAGR) of 3.61% between 2024 and 2029, and new technologies and innovations such as AI-enhanced gaming and VR-based casinos are on the horizon, which will further enhance the growing popularity.
The in-person gambling scene will continue to be a niche market enjoyed by primarily older customers and those seeking a more social aspect of gambling. However, it is expected that the market share of offline gambling will continue to decline. This means that these operators have to adapt to this reality, which could include embracing digital channels to survive on the market.
Concluding remarks
In the UK, the war battle between online and traditional gambling is not so much a balanced battle anymore. In the year 2024-2025, the online gambling market stands out, which is more and more appreciated and "monetized", due to the accessibility, variety, and the convenience of the online experiences. Consumer trends will continue to seek out online gambling offers, meaning that the UK gambling industry is looking to the digital future and to deliver on that expectation.
