2024 sees the UK gambling sector stand at a point of inflection, marked by intense competition and yet-to-be-settled regulatory proceedings.
In an exclusive interview for the SBC Summit, Steve Birch, Chief Commercial Officer of Sky Betting & Gaming (Sky Bet), underscores a proactive approach to mitigating challenges, based on customer trust, sustainability, and compliance-first innovations.
SBC: Hi Steve, thanks for this interview on the status of UK gambling. From your perspective, what elements and dynamics are at play in the UK market in 2024?
Steve Birch (CCO @ Sky Betting and Gaming): The market is as competitive as it has ever been, with all the big operators upping their game in terms of what they offer. Across the sector, we are also generally seeing more focus on the return on investment of campaigns and product developments. This comes at a time when operators are rightly continuing to focus more on looking after customers. It’s a fascinating time to be working in the UK market.
SBC: UK gambling is still amid a yet-to-be-concluded Gambling Review. How has this dynamic impacted Sky Betting & Gaming?
SB: All we can do is wait and see what the new Government does in terms of implementing the measures outlined in the White Paper and work to support their mission to reduce gambling harm, a mission we very much share.
We were the first operator, as Flutter UKI, to introduce £10 limits on slots, and we’re working in the background to prepare for the introduction of the new £2 and £5 limits. We’re also collaborating with the Gambling Commission on pilots of the affordability measures in the White Paper plans. Also, we must not forget the customer in all this. We have to ensure they are aware of everything that is going on and that we do all we can to tackle potential harm while keeping ‘friction’ to a minimum for the vast majority who will never experience any issues.
SBC: From a commercial standpoint, how are compliance adjustments and greater customer care duties impacting the operating model of UK operators? What is the overall impact on the business value chain?
SB: We have rightly been on this journey for a few years, so there are no shocks. We have been adjusting to the fact that marketing campaigns for new and existing customers need to target the right players and be judged on the right payback metrics. Where we have been focusing ever more investment and attention—and will continue to do so—is on ensuring we keep evolving the customer experience and have the very best safer gambling journeys.
SBC: With UK gambling in the regulatory spotlight, what issues or debates have concerned you regarding the terms of play in UK markets?
SB: It is definitely a good thing that, as a sector, we are looking to raise standards, which can only mean a more sustainable future. There is no doubt there are things that happened in the past that, as a sector, we cannot be proud of.
However, we need to ensure that the debate around igaming is balanced. Sports betting and slots/casino games are responsibly enjoyed by millions in the UK, and it is in the interest of operators and customers alike that the sector continues in an open and public way.
All of us, and by that, I mean campaign groups as well as operators, have a responsibility to ensure that the debate around gambling is factual and that we have a reasonable and regulated sector. The worst outcome for everyone, especially customers, would be if the UK ends up with a significant black market.
SBC: UK operators have faced criticism for a ‘diminishing consumer trust’. What can be changed to improve the reputation of UK gambling with customers?
SB: I mentioned earlier this year that we at Sky Bet want to do the right thing for customers and staff, and I’m very sincere about that. As an industry, we haven’t always got things right in the past, but I would argue some of the criticism levelled at the sector now is just wrong.
The key here is the customer and doing all we can to tackle harms. But I think we have made huge strides in this area, and that’s forgotten by some of the anti-gambling campaign groups out there. The recent Gambling Commission survey showed that 70 per cent of those who gamble do it for “fun” and the vast majority don’t experience any harm at all.
We (Sky Bet) want to be the most trusted operator in the UK, we want to lead from the front, and that means excelling in every aspect, from safer gambling to giving back to the community.
I’m extremely proud of the Building Foundations Fund we set up last year with the EFL to give £1 million a year to community organisations linked to EFL clubs, as well as our great £3 million partnership with the British Heart Foundation—‘Every Minute Matters’—which aims to encourage 270,000 people, the equivalent of three Wembleys, to learn CPR. People can criticise us, but hopefully, this will make a very big difference.
You saw the difference CPR can make at Villa Park earlier this year when Heidi Elliott, an off-duty medic, saved the life of a fan in the stands. We want to use our brand and marketing expertise to help the British Heart Foundation reach more people and train more people. Hopefully, it will also challenge perceptions about us too.
SBC: Yet the only guarantee is growing costs and customer saturation. Has UK gambling simply reached its ‘peak phase’? Is there any more room for growth and competition?
SB: We are just in a different phase now. If you go back 15 years, UK gambling was a terrible e-commerce product with poor customer journeys, limited depth in the product offering, and a lack of an end-to-end experience.
Now, to win in the UK market, you have to be a very good e-commerce business, really look after your customers, and provide innovation in the customer experience. That can only be a good thing for everyone working in a UK-facing operator.
SBC: Are you confident that we will have a more stable and sustainable UK market in 2025 and beyond?
SB: Yes! The market is becoming more sustainable, which is only a good thing. Hopefully, we are in for as much innovation, change, and excitement for customers as we have seen over the last 10 years.