iGaming industry goes from strength to strength in the UK and US

iGaming industry goes from strength to strength in the UK and US    

The weather may have gone from hot to cold, but the iGaming industry is heating up with some significant growth in the third quarter of 2024. Both the UK and US markets have experienced some major expansion, showcasing the continued potential of online gaming and sports betting. 

On this side of the Pond, the UK Gambling Commission reported a gross gambling yield (GGY) of £1.32 billion in its third-quarter data. That marks an 11% increase year-on-year, with online gambling revenue rising by 13% compared to the same quarter in 2023. 

This demonstrates the clear health of the UK iGaming market, with Slots in particular showing a sizable uptick in revenue on the year to hit a record high of £689 million.  

While the number of bets on real events decreased overall (down 10%), the data showed an increase in the value of those bets, rising to a GGY of £453 million. 

Things in the US also appear positive for the industry, with growth in existing legalised states as well as the recent launches of sports betting and iLottery in new states. This translated into an impressive 36% increase in industry sales for the second quarter. 

The US market looks particularly rosy right now, with industry sales projected to rise to more than $35 billion in 2027. As more states pursue online lottery options, who knows how much further that growth could rise in the next few years? 

One company worth highlighting is Entain, a major player in the global gambling industry. Their Q3 results showed an 8% year-on-year increase in group revenue, with a 6% rise in online revenue in the UK and Ireland markets. 

Gaming Innovation Group (GiG) also performed strongly in the third quarter of 2024, reporting underlying revenue growth of 26% year-on-year. 

So, what can we take from all this? 

Well, it’s safe to say that the iGaming industry looks set to continue expanding in the months ahead. As the UK’s Autumn Budget avoided imposing additional taxes on iGaming, the mood appears even brighter, with operators likely to pursue greater investment now that those worries are gone. 

Mobile gaming has also emerged as a significant growth driver, with stats showing that almost 40% of UK adults now play online games on their phones or laptops. The rapid advance of technology could offer additional opportunities for iGaming, particularly in areas like Augmented or Virtual Reality. 

For the US, the key source of growth remains the shift in regulatory landscape as more US states legalise sports betting and/or online gambling. New product launches from companies like GiG have also capitalised on the US sweepstake market to drive additional growth. 

Looking ahead to the fourth quarter and 2025, Slots and sports betting look set to continue driving strong revenue for the UK market. The growth of online gambling options in various states may also help expand the US market, particularly as new regions follow the path to legalisation. 

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