UK – It has been reported today that the UK casino industry is struggling to compete with the online gambling world and executives are braced for the release of annual financial figures showing the total gross gambling yield in the UK.
Figures are set to be released within the next month for the year of April 2019 to March 2020 and it is not yet known whether the industry will experience further decline in total yield, or a positive swing.
Last year, the total gross gambling yield for UK casino establishments fell around ten percent on the previous twelve months to a figure just above one billion pound.
If the declining trend continues of a year on year fall in total yield, the industry could fall below one billion, sparking further venue closures and potential job losses.
As with retail units on the high street, gambling establishments are finding it difficult to compete with online casino firms in many areas.
A spokesperson on the Isle of Wight, where there are currently no casinos despite past efforts of developing one, commented on the difficulty brick and mortar casinos are facing compared with online offerings:
“The advantages of online casinos are proving to be an uphill struggle for brick and mortar casino establishments. Players are able to bet from the comfort of their own home and take advantage of almost an unlimited number of games to choose from including live dealer games, slots and roulette.”
The spokesperson expanded on the difficulties that are seeing many venues shut their doors in the UK:
“Online casino providers are able to release new games on a regular basis, whereas casino establishments rarely invest in new machines. The rake margin at online casinos is also more than brick and mortar venues due to a higher number of expenses land based establishments face, including staff wages. This also gives online providers the upper hand because they can use this margin to offer bigger bonuses to customers.”
Although there are no casino establishments on the Isle of Wight, there are around fifteen bookmakers, including Coral, Betfred and Ladbrokes, which offer sports betting and gambling at FOBT’s. It is estimated that around £80million is gambled each year on the English island located in the English Channel.