How the UK is Missing Out on Gaming Revenues

The United Kingdom has long been one of the world's most established gaming markets, with a strong regulatory framework and a wide range of operators. However, recent figures suggest that the landscape is shifting. A report from the UK Gambling Commission indicates that the total gaming revenue, measured as Gross Gaming Yield, for the online sector in Great Britain has declined slightly for the period ending December 31, 2025. Online GGY reached £1.5 billion, reflecting a 2% annual decrease.

At the same time, activity levels remain high. The total number of online bets and spins increased by 6%, reaching 27.4 billion. Despite this growth in engagement, the average number of regular user accounts fell by 2% to 12.7 million. These figures highlight a disconnect between participation and revenue, raising questions about how the UK can capture greater value from its gaming sector.

One of the key factors influencing UK gaming revenues is the number of companies operating offshore. Many gaming businesses choose to base their operations in jurisdictions such as Malta, where regulatory conditions and tax structures can be more favourable.

Malta remains a global hub for iGaming due to its robust regulatory framework, attractive tax environment, and access to skilled talent, making it a preferred base for operators targeting international markets. This positioning has allowed Malta to become a central location for companies serving players across Europe, including the UK.

When companies operate from offshore locations, a significant portion of the economic benefits, including tax revenues and employment opportunities, is generated outside the UK. This creates a situation where UK players contribute to the success of the global gaming industry, while the financial gains are often realised elsewhere.

The UK gaming market is known for its comprehensive regulations, which are designed to protect players and promote responsible gaming. These measures are essential for maintaining trust and ensuring a safe environment. However, regulatory changes can also influence how companies operate and where they choose to base their activities.

Operators must balance compliance with the need to remain competitive. In some cases, this has encouraged businesses to expand into other jurisdictions where they can operate with different cost structures. This shift can affect how revenue is distributed globally, as companies align their strategies with international opportunities.

Understanding these dynamics is an important part of assessing the UK's position in the global gaming market.

While the UK market faces challenges, the gaming industry in Asia is experiencing significant growth. Countries across the region are investing in infrastructure, technology, and entertainment to attract players and generate revenue. This growth is supported by large populations, increasing digital adoption, and a strong interest in gaming experiences.

Asian markets are capitalising on these trends by developing innovative platforms and services. This has allowed them to capture a growing share of global gaming revenues, highlighting the importance of adapting to changing market conditions.

The Philippines has emerged as a key player in the gaming industry, with integrated resorts and online platforms driving growth. One example is Solaire, a leading gaming brand that has expanded its presence across Asia. Solaire's live slots have played an important role in its success. These games combine immersive design with interactive features, creating engaging experiences for players. By offering high-quality live slot content, Solaire has strengthened its position as a dominant gaming brand in the region.

The popularity of live slots reflects broader trends in gaming, where players seek experiences that replicate the atmosphere of a physical casino. This approach has contributed to the growth of the industry in the Philippines and beyond.

Macau continues to be one of the most significant gaming destinations in the world. The region has embraced technological innovation to enhance its offerings and improve efficiency. One of the key developments is the use of AI-enhanced table game analytics.

These systems analyse player behaviour and game performance in real time, providing valuable insights for operators. By using AI to optimise operations and enhance the player experience, Macau has strengthened its position as a global gaming hub.

Singapore has also developed a unique approach to gaming by combining casinos with integrated resorts. These developments include hotels, entertainment venues, and retail spaces, creating a comprehensive experience for visitors.

The integration of gaming with tourism has generated significant economic benefits. By attracting international visitors and offering diverse experiences, Singapore has established itself as a key destination in the global gaming market. This model highlights the potential for gaming to contribute to broader economic development when combined with other sectors.

Another important factor is the growing strength of the United States gaming market. In recent years, the US has expanded its online gaming and sports betting sectors, with individual states regulating and benefiting directly from local operations. This has created a framework where revenue, taxation, and employment remain within the domestic economy.

The scale of this growth is significant. The North America online gaming and betting market was valued at $11,863.6 million (£9,300 million) in 2022 and is projected to reach $34,685.3 million (£27,200 million) by 2032. This level of expansion highlights how the region is becoming a major force in the global gaming industry.

The US market has also embraced digital innovation, with operators investing heavily in mobile platforms, live gaming experiences, and data-driven technologies. Partnerships between major casinos, technology companies, and sports organisations have helped drive engagement and attract new audiences. This coordinated approach has enabled the US to capture substantial growth in both online and land-based gaming.

For the UK, this presents another competitive challenge. While the UK has an established gaming industry, the US model shows how localised regulation and investment can support domestic revenue generation. As American markets continue to expand, they are likely to draw both operators and players, further increasing global competition for gaming revenues.

The UK gaming industry remains a significant part of the global market, but recent trends suggest that it faces challenges in capturing revenue. While player engagement remains strong, factors such as offshore operations and regulatory dynamics influence how value is distributed.

At the same time, regions such as Asia are experiencing rapid growth, driven by innovation, investment, and expanding markets. Examples from the Philippines, Macau, Singapore, and Japan illustrate how different approaches can generate substantial economic benefits.

For the UK, understanding these global trends is essential. By adapting to changing conditions and exploring new opportunities, the country can strengthen its position and ensure that it continues to benefit from the growth of the gaming industry.

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