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The revenue of the online gambling industry depends on high spending by a small number of people

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View Open Access Article View Snapshot Back to Search Results

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Author(s): Forrest, David ; McHale, Ian G.

Journal: Journal of Gambling Studies

Year Published: 2024

Date Added: September 10, 2024

The purpose of this study was to examine how dependent the online gambling industry is on people who gamble heavily. Seven leading gambling operators in Great Britain provided the researchers with data for 139,152 people who gambled at least once between June 2018 and June 2019. The findings showed that people who were in the top 20% in terms of amount of loss, generated 89.2% of the net revenue for the gambling operators. The top 10% of people generated 79% of operator revenue, and the top 1% of people generated 37%. But the bottom 50% of people generated only 0.5% of the net revenue. The revenues generated by sports betting and bingo were not as dependent on a small number of people with high spending. Even then, a few people accounted for a significant proportion of the net revenue. The researchers discussed how restrictions of account deposits or losses might pose a risk to gambling operators because a minority of people contribute significantly to their net revenue.


Citation: Forrest, D., & McHale, I. G. (2024). The dependence of online gambling businesses on high-spending customers: Quantification and implications. Journal of Gambling Studies. Advance online publication. https://doi.org/10.1007/s10899-024-10329-z

Article DOI: https://doi.org/10.1007/s10899-024-10329-z

Keywords: gambling harm ; gambling regulations ; online gambling

Topics: Online Gambling

Conceptual Framework Factors:   Exposure - Gambling Setting ; Environment - Social and Economic Impacts ; Types - Structural Characteristics ; Exposure - Accessibility ; Gambling Environment

Study Design: Secondary Data Analysis

Geographic Coverage: United Kingdom, Great Britain

Study Population: People who had an account with at least one of seven gambling operators in Great Britain and who wagered their own money at least once between June 2018 and 2019 (n=139,152).

Sampling Procedure: The researchers used stratified random sampling to select 20,000 accounts from each of the seven gambling operators in Great Britain for which they would request more detailed information. Very frequent players were intentionally over-sampled.

Study Funding:

This study was funded by GambleAware.

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