UK sports betting market continues to grow driven by gen Y and mobile betting apps

Published by: James Hudson

12th January 2014

As one of the most regulated markets in the world in respect on online sports betting, the overall growth of the UK market is expected to continue to experience high single digit CAGR rates for the next 5 years.

UK online sports betting market valuation

Currently valued at GBP$650M, the UK online sports betting market is split roughly into 3 segments according to Betfair (2013). The largest segment of this market is the "recreational bettor", contributing GBP$440M to the market, followed by "sophisticated bettors", contributing GBP$150M to the market (Betfair's own core target segment). Finally, the "occasional bettor" group represents GBP$60M to the market. These punters are more commonly customers who signup on major events, such as the FIFA World Cup finals betting action.

From 2009 - 12, William Hill forecast the compounding annual growth rate (CAGR) at approximate 7% for the online sports betting market (H2 Gaming Capital). William Hill estimates it serviced 16.5% of the total addressable market share by net revenue in 2011.

In respect of customers demographics, the largest online segment is the "regular online gambler" between the ages of 18 - 34 totalling 49%. This group is closely followed by the 35 - 54 year age group, representing a further 39%. Of the total customer base, it is estimated that only 21% are female and that 61% are ABC1. The total UK gambling population is estimated to be approximately 2.1M customers who bet on sport.

Mobile betting growth in UK markets

Mobile betting offers one of the largest growth segments and channels for the UK market, with over 42M UK residents having 3G access. (William Hill Annual Report 2012). Global mobile traffic is now 10% of all mobile traffic. William Hill estimates that in 2015, 17% of all European gaming activity will be via mobile betting apps

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