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Statistical data revealed by gambling industry regulators in the UK always makes for insightful viewing, especially regarding the latest trends. While many of us will already be familiar with the phenomenal growth of online gambling over the last two decades, there are niche areas of the industry which have produced staggering results, and one which has emerged with unprecedented dominance in recent years.
The remote sector, which is usually associated with online casino gaming and online betting, achieved an overall gross gaming yield (GGY) of £5.6 billion between October 2017 and September 2018. The same report indicated an increase of 2.9% on revenues compared to the previous fiscal period, with the online gambling industry continuing to enjoy year on year growth including a huge increase in demand to play online slots UK.
Interestingly, the published figures from the UK Gambling Commission also highlighted that within the £5.6 billion of gross gaming yield generated by the remote sector in the UK, £2.0 billion in revenues came from slots. Given that slots now account for just over 35% of total overall revenue generated, these figures clearly indicate that for online casinos, this singular gaming niche has become not only the most profitable, but also by far the most popular amongst clientele at online casino sites.
The Evolving Appeal of Slots
At present, you would be hard pressed to visit any online casino or bookmaker website that doesn’t offer slots games. They all want a slice of the action, given the exceptional growth in popularity, and profitability, of this singular niche within the gambling and gaming industry. Competition is also fierce, with many of the leading online casinos offering a wide range of promotions and bonus deals such as free spins, aimed attracting clients to open new accounts.
Given the increasing desire to play online slots, UK niche sites have focused entirely on these particular games, with dedicated online venues providing visitors with hundreds of options to choose from, all at one convenient and dedicated location. From a business perspective this makes perfect sense, because such providers are focusing on what people are proven to enjoy most at online casinos.
Compared to other traditional casino games such as poker, blackjack or baccarat, the greatest appeal to slots is also the simplicity of gameplay. There is no skill required to play, nor is there a need to understand complex strategies to boost the chances of winning. Slots are purely based on luck, which means that the chances of winning or losing are equal for everyone that plays, while also offering amongst the highest return to player (RTP) of any casino games.
The simple nature of slots has also lent the basic game a unique advantage, insofar as how they can be enhanced to provide further gaming entertainment for players. This can range from classic and simple three or five-reel games, slots associated with music artists such as Guns N’ Roses and Jimmy Hendrix, to feature-packed games themed around popular movie franchises such as Jurassic Park and Terminator.
Additionally, video gaming trends in general have influenced the variety of slots. Many software developers hail from backgrounds in other gaming genres, making them keenly attuned to what elements of modern video gaming are most appealing to players. Recognisable traits and familiarity with other video gaming hits, easily adapted and built around the basic concept of slots, makes for an instant recipe for success.
Land-based Slots vs. Online Slots
As anyone who has visited the giant casino resorts in Las Vegas or Macao will confirm, for many years, both traditional mechanical and electronic video slots machines have typically taken up the vast majority of gaming space on casino floors. The bright flashing lights, the colourful displays, the array of sound effects; all these sensory elements made slots hugely popular at land-based casinos. Nevertheless, both locations are cutting back on terminals.
Within the UK, slot machines have been a permanent fixture at casinos around the country, likewise, at amusement arcades and betting shops, while most familiar of all are the traditional fruit machines found in pubs and restaurants. However, over the last few decades, financial reports have shown a massive decline in the popularity of gaming machines such as slots at land-based venues throughout Britain.
This decline comes as a result of direct competition from online slots operators, providing a more appealing combination of convenience and variety. With more games available and without the need to travel anywhere to play, sites offering online slots are at a distinct advantage. The outcome is that since 2007, income from fruit machines and slots at land-based venues has fallen by more than £600 million, while profits online continue to soar.
The timespan of land-based slots declining and online slots growing is also no coincidence. As one of the leading providers of casino software since the early 1990s, UK based developer Microgaming launched the very first mobile casino software back 2004. Since then, they have released more than 300 slots games, while other renown developers such as NetEnt and Playtech have followed suit, releasing hundreds more slots games to meet the growing demand.
Conclusion: The Online & Mobile Advantage
While it’s clear that there’s still a market and audience for traditional slots and fruit machines at land-based venues, evidence suggests the decline in popularity looks set to continue unless important innovations can be made over the coming years. Innovations such as those made by online slots developers, able to quickly produce software products to instantly meet the demands of online players, compared to those producing physical machines.
Additionally, amusement with prize machines (AWPs) and fixed odds betting terminals (FOBTs) tend to offer lower return to player (RTP) percentages, compared to their online counterparts, which are typically pay out 96% or more of takings. Likewise, online slots and casino games are convenient and more easily accessible, allowing players to play wherever they want and whenever they want. For land-based casinos, the latter is almost impossible to compete with.
