The UK Gambling Commission (UKGC) has released its financial results for the first quarter of 2025, reaching £1.45 billion. The figures reveal a 7% year-on-year increase in gross online gambling revenue.
Recorded between January and March of this year, these growth indicators emerge in a scenario of regulatory transformations in the sector. In addition, the market demonstrates a notable inclination towards digital betting platforms.
Online sector gains strength with increased digital participation
The online gaming segment continues to expand, driven by increasing user engagement. The steady consumer demand is reflected in a 5% increase in the total volume of online bets and spins compared to the same period last year, reaching 25.2 billion.
Digital slots dominated online activity, growing 11% year-on-year to £689 million. The number of monthly active accounts rose 6% to a record 4.5 million, resulting in over 23.4 billion spins.
Player engagement increased along with the number of active users. Online slots sessions lasting more than an hour grew by 5% to 10.1 million. However, the average session length remained stable at 17 minutes.
Live betting also saw gains, with a 5% increase year-on-year to more than £596 million. This growth came despite a 1% decrease in the number of bets and a 2% decrease in active accounts.
The Cheltenham Festival, the UK’s premier horse racing event, stood out as the biggest driver of activity during the quarter. Racing results have clearly benefited operators this year.
UK land-based betting faces challenges in Q1
While the online sector is showing promising results, the land-based betting segment is struggling. Revenue from Licensed Betting Operators (LBOs) fell 3% to £554 million in the first quarter, with bets and spins down 5% to £3.1 billion.
Over-the-counter (OTC) betting took a significant hit, with volumes down 6%, although the market stabilised at £152m. Self-service betting terminals (SSBTs) also saw a decline, down 1% to £125m.
This shift in consumer betting habits represents a worrying trend for brick-and-mortar establishments. While gamblers still frequent land-based casinos and sportsbooks, a significant shift to mobile apps and online platforms is inevitable.
As part of the quarterly report, the UKGC also adjusted elements of its historical data. One example was the reclassification of statistics from the casino sector to the slots sector, due to the individual strength of this market.
While the £1.45bn total for Q1 2025 will not surpass the £1.66bn peak seen during the pandemic in Q4 2020, recent figures show a growing market despite the additional regulatory changes facing the sector.
