Artificial Intelligence Will Drive UK Betting Revenue

Artificial intelligence is the future of the UK betting industry according to a recent report by research and advisory group, Technavio.

Artificial intelligence.

Artificial intelligence could help drive growth for the UK betting industry in spite of new high street regulations. (Image: orbium.com)

Reviewing the latest industry trends and innovations, the technology firm has predicted that the gambling industry’s growth over the next five years will be drive by the online sector.

Thanks to the UK Gambling Commission (UKGC), we already know that online betting and gaming accounts for the largest portion of the industry’s total revenue.

Online Growth to Continue

As per the UKGC’s January 2018 statistics, remote operators contributed 34 percent of the £13.8 billion in Gross Gambling Yield (GGY) generated between 2016 and 2017. According to experts at Technavio, this market share will increase by 2022 and result in a five percent increase in the overall compound annual growth rate (CAGR).

Pointing to the gaming industry’s willingness to embrace technology, the report suggests that advanced learning systems will improve the user experience and drive new custom to sites.

“AI is used in the gambling industry to improvise customer service. Advanced bots that are replacing customer service representatives can access and analyse knowledge about a customer’s specific playing habits,” said a senior analyst in the report published in May.

As well as forecasting an upturn for the industry as a whole, analysts believe online sports betting will continue to claim more of the market. Noting that live and online sports betting account for 45 percent of the industry’s turnover, the report suggests the latter will see its market share increase by three percent by 2022.

Offline Troubles May Not Result in a Loss

For British bookmakers, these projections will come as welcome news as they wait for the result of the government’s fixed odds betting terminal (FOBT) review. With an announcement expected any time soon, Betfred has announced it will axe 4,500 jobs if the limit is set too low.

With FOBTs accounting for a significant portion of high street betting revenue, many operators have fought hard against having the maximum stake per round cut from £100 to £2. However, with those close to Westminster suggesting this is intended course of action, many will have to find new ways to bolster their income.

For punters, this could mean a surge in online innovations. With Technavio’s report pointing to the internet as the sector with the most potential, consumers may well see new games, features and offers arise as operators look to offset any high street losses.

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