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27/09/2024
Gambling Revenue Faces Significant Decline In NI
The gambling sector in Northern Ireland is facing a considerable downturn, as revealed in the 2023 report published by the Department for Communities (DfC). The report outlines the industry's state, compares current and past data, and aims to guide future policy and legislative decisions.
This downward trend is primarily attributed to changing consumer behaviour and stricter regulations. Traditional betting shops have been particularly affected as online gambling gains popularity. However, the rise in digital platforms has not been enough to offset losses. Many online operators are known to offer incentives such as win real money bonuses as promoted on AussieBonuses, but even these tactics have failed to fully restore revenues. The decline raises concerns about the long-term sustainability of the industry in the region, especially as younger consumers increasingly seek alternative forms of entertainment beyond gambling.
Decline in Land-Based Gambling Revenue
One of the report's most significant findings is the sharp decline in land-based gambling revenue. While the industry peaked in 2016, with an impressive turnover of £760 million, this figure has steadily decreased. By 2022, the turnover had plummeted to just £228 million, marking the lowest in recent years.
Shifts in Gaming Machine Permits
The report also highlights changes in the gaming machine sector. Under the Betting, Gaming, Lotteries, and Amusements (Northern Ireland) Order 198, venues looking to legally have these machines on the premises must obtain two types of permits.
The first permit allows gaming machines with a maximum payout of £25. In 2023, 114 permits were issued, covering 6,457 machines. This was a decline compared to the 119 permits in 2022, despite the fact that the number of machines covered by the permits had increased from 5901 in 2022 to 5O 6457 in 2023.
The second type of permit, covering machines with a maximum payout of £8, showed some growth. In 2023, 24 permits were issued, up from 18 in 2022. The number of machines covered under this permit type also increased significantly, rising from 377 in 2022 to 855 in 2023.
Decline in Maintenance Certificates for Gaming Machines
Another notable trend in the report is the decrease in gaming machine maintenance certificates. These certificates allow holders to supply and maintain gaming machines. In 2023, only 31 certificates were operational, down from 41 the previous year. This decline signals a reduction in the service sector related to gaming machines, which could reflect broader challenges in the industry.
Lottery Licenses Remain Stable
Despite the downturn in some areas of the gambling sector, society lotteries—often promoted for charitable causes—remained a strong aspect of the market. In 2023, 124 licenses were renewed, and 52 new licenses were granted, showing the continued popularity of this form of gambling. Meanwhile, lottery certificates, which allow individuals to operate as external lottery consultants or managers, remained limited, with just two active certificates in 2023.
Track Betting and Bookmaker Licenses
Track betting, which includes horse racing and dog racing, remains a small but consistent part of the gambling industry in Northern Ireland. In 2023, only two horse racing tracks and two dog racing tracks held betting licenses, the same as in previous years.
The bookmaker sector showed slight growth, maintaining 103 licenses in 2023, unchanged from 2022. However, the number of bookmaker office licenses increased from 279 to 285, indicating a small expansion in betting shops across the region.
Employment in the Gambling Industry
Despite the decline in revenue, the gambling industry remains an important source of employment in Northern Ireland. In 2022, the sector employed 2,240 people, a slight increase from 2,185 in 2021. This indicates that while the financial health of the industry may be waning, it continues to provide jobs for thousands of residents.
Looking Ahead: The Future of Northern Ireland’s Gambling Industry
In short, this recent report underscores the need for a strategic approach to address the challenges facing Northern Ireland’s gambling industry. With land-based revenue in decline and certain sectors contracting, stakeholders, including the Department for Communities, formulating future policies will need to focus on stabilising the industry while adapting to ongoing changes.
This downward trend is primarily attributed to changing consumer behaviour and stricter regulations. Traditional betting shops have been particularly affected as online gambling gains popularity. However, the rise in digital platforms has not been enough to offset losses. Many online operators are known to offer incentives such as win real money bonuses as promoted on AussieBonuses, but even these tactics have failed to fully restore revenues. The decline raises concerns about the long-term sustainability of the industry in the region, especially as younger consumers increasingly seek alternative forms of entertainment beyond gambling.
Decline in Land-Based Gambling Revenue
One of the report's most significant findings is the sharp decline in land-based gambling revenue. While the industry peaked in 2016, with an impressive turnover of £760 million, this figure has steadily decreased. By 2022, the turnover had plummeted to just £228 million, marking the lowest in recent years.
Shifts in Gaming Machine Permits
The report also highlights changes in the gaming machine sector. Under the Betting, Gaming, Lotteries, and Amusements (Northern Ireland) Order 198, venues looking to legally have these machines on the premises must obtain two types of permits.
The first permit allows gaming machines with a maximum payout of £25. In 2023, 114 permits were issued, covering 6,457 machines. This was a decline compared to the 119 permits in 2022, despite the fact that the number of machines covered by the permits had increased from 5901 in 2022 to 5O 6457 in 2023.
Decline in Maintenance Certificates for Gaming Machines
Another notable trend in the report is the decrease in gaming machine maintenance certificates. These certificates allow holders to supply and maintain gaming machines. In 2023, only 31 certificates were operational, down from 41 the previous year. This decline signals a reduction in the service sector related to gaming machines, which could reflect broader challenges in the industry.
Lottery Licenses Remain Stable
Despite the downturn in some areas of the gambling sector, society lotteries—often promoted for charitable causes—remained a strong aspect of the market. In 2023, 124 licenses were renewed, and 52 new licenses were granted, showing the continued popularity of this form of gambling. Meanwhile, lottery certificates, which allow individuals to operate as external lottery consultants or managers, remained limited, with just two active certificates in 2023.
Track Betting and Bookmaker Licenses
Track betting, which includes horse racing and dog racing, remains a small but consistent part of the gambling industry in Northern Ireland. In 2023, only two horse racing tracks and two dog racing tracks held betting licenses, the same as in previous years.
The bookmaker sector showed slight growth, maintaining 103 licenses in 2023, unchanged from 2022. However, the number of bookmaker office licenses increased from 279 to 285, indicating a small expansion in betting shops across the region.
Employment in the Gambling Industry
Despite the decline in revenue, the gambling industry remains an important source of employment in Northern Ireland. In 2022, the sector employed 2,240 people, a slight increase from 2,185 in 2021. This indicates that while the financial health of the industry may be waning, it continues to provide jobs for thousands of residents.
Looking Ahead: The Future of Northern Ireland’s Gambling Industry
In short, this recent report underscores the need for a strategic approach to address the challenges facing Northern Ireland’s gambling industry. With land-based revenue in decline and certain sectors contracting, stakeholders, including the Department for Communities, formulating future policies will need to focus on stabilising the industry while adapting to ongoing changes.
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