GB market contracts following B2 stake cut
This contributed to gross gaming yield (stakes minus payouts) for market declining marginally, falling 0.6% year-on-year to £14.22bn (€15.83bn/$18.97bn).
The final 11 days of the reporting period also saw land-based gambling venues closed due to novel coronavirus (Covid-19), and the sporting calendar significantly reduced by the pandemic.
Online gaming, comprising sports betting, bingo and casino, was the biggest contributor to revenue, accounting for £5.68bn of the total, up 8.1%.
The channel’s growth was driven by a strong performance from online sports betting, for which revenue climbed 15.5% to £2.33bn, though it remained the second largest vertical after casino, for which revenue was up 3.7% to £3.18bn. Bingo, meanwhile, saw revenue grow marginally, rising 0.5% to £176.8m.
Turning to land-based gambling, and gaming machine revenue dropped 25.6% year-on-year to £2.09bn, after maximum stakes for B2 machines were cut from £100 to £2 in April 2019.
This led to yield from the machines plummeting to £12.1m, a 99.0% drop. This was partially offset by growth in revenue for other machine categories, namely B3 machines, for which GGY jumped 39.5% to £1.54bn.
There was more marginal growth B1 machines, with a maximum stake of £5, for which revenue increased to £214.8m, with yield for category B4, C and D terminals all declining.
The B2 stake cut contributed to total betting shop revenue falling 26.4% to £2.40bn, which was accompanied by a 7.7% drop in the number of shops open by the end of the year, to 7,681 premises.
Bingo halls also reported year-on-year declines in revenue, which fell 5.7% to £636.0m, with casino revenue down 4.0% to £1.02bn. This meant that arcades were the only land-based premises to report growth for the year, with revenue up 8.8% to £477.3m.
The lottery vertical, meanwhile, saw growth across both large society lotteries and the National Lottery. Excluding the Camelot-operated lottery, revenue was up 13.3% to £611.6m, though the total generated for good causes dropped 10.7% to £366.8m.
The National Lottery, on the other hand, generated sales of £7.90bn, comprising £5.45bn in retail sales and £2.46bn online. From this it generated gross yield of £3.40bn, up 10.4%.