It doesn’t take a genius to notice a huge disparity in online casino game lobbies between slots and other games.
Slots are evidently more dominant and some brands don’t even host other casino games. In fact, some of the most popular incentives nowadays are slots free spins no deposit which allow players more ways to try games without spending money. They provide gamers with a risk-free way to try out different game mechanics, titles, and offers. What’s more, it’s a great way to acquire new users by convincing them to give some games a shot.
Even if it seems like handouts there is a method to this madness. Slots are incredibly profitable, and these losses will easily be offset by overall revenue from these games. Below, you can find our detailed study of slot game GGY in 2024. Tune in to find out the GGY of slots in 2024 and see some predictions for years to come.
What is GGY?
Gross Gambling Yield shows how much money players bet minus the cash they won back from betting activities. In other words, it shows the direct profit from a specific game or gambling activity.
GGY Formula
Calculating the Formula for GGY is a simple process. Here’s how:
GGY = Total Wagers − Total Return
For example, if players wager £500,000 on a slot game and receive £450,000 in winnings, the GGY would be:
GGY = £500,000 − £450,000 = £50,000
GGY vs Revenue
Although some use these terms interchangeably, GGY and revenue have meaningful differences. GGY shows the earnings from casino gaming not counting expenses like taxes, salaries, commissions, etc. Net Gaming Revenue is the profit that gambling operator keeps after they pay taxes, commissions, bonuses, salaries, etc.
GGY as KPI
GGY stands as a key performance indicator and it’s very useful for both micro and macro management. In a way, it communicates user preference and tells business owners where they can double down to generate more profit. It’s also useful to compare GGY for each game individually and figure out if you can cut some of the costs by ending the collaboration with certain software providers.
A 2024 Analysis - Monthly GGY Figures For Slot Games
Although we don’t have the latest data date set for 2024, the Q2 numbers were published by the UKGC. Not counting sportsbook players, slot gamers are the most dedicated users in the online gambling space. Additionally, the GGY from slots strongly outperforms the GGY of sports betting. Here’s a snapshot of how this market performed in Q2:
Factors Driving GGY Trends
Several critical factors have contributed to the robust performance of slot games in 2024:
- Active Player Growth - The number of people actively playing slot games went from 3.8 to 4.4 million over the past 12 months
- More Disposable Income - RHDI (Real households' disposable income) has increased in the past few years. It went up by 1.3% between Q1 and Q2 of 24. Also, two years prior (2022) Gross disposable household income went up by 6,3% compared to 2021.
- Longer Playing Time - Last year more than 10 million players spent over 60 minutes, in one sitting, playing online slot games. In other words, the number of players with longer play sessions is also on the rise, while the average play session is 17 minutes.
- Market Dominance - Most casino development studios focus on creating this game genre. The market is incredibly competitive, and the games are mobile-compatible, which makes them widely accessible.
- Increased coverage - The number of gambling live streams has spiked over the past few years. Younger viewers who see big wins in real time often decide to give these games a shot.
Source: Stramcharts
Predictions for 2025
Slot games remain the favorite type of game for players who make up 85% gaming audience. Based on the current market trends the slot game sector is expected to keep expanding through 2025. That said, the market does have its ebbs and flows, especially on the regulatory front. The increase in activity also leads to an increase in concern and the terms of use become more restrictive.
According to the latest updates, casinos will have to do financial check-ups on those players who deposit more than £500 per month. Additionally, in 2025 this threshold will be moved to £150 which is bound to cause more friction in user spending. That’s not all, as the games will have to be tweaked in order to comply with new online slot stake size limitations. Basically, anyone who is 25 or older will only be able to bet £5 per spin. Players who are between 18 and 24 will have a stake limit of £2 per spin.
Comments