British consumers' spending habits have shown a strong shift toward digital entertainment options this year. We’ve seen this in key sectors like iGaming, e-commerce, and e-sports which have grown significantly due to factors like an increased preference for online and interactive experiences. With that said, let’s take a look at how consumers have spent in each sector.
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First, let’s explore how consumers have spent in the iGaming industry, which includes sportsbooks, online casinos, and other online gambling platforms. These platforms have seen significant growth in 2024, driven by regulatory changes and changing consumer preferences.
Only a few years ago, iGaming platforms relied heavily on traditional banking methods such as credit cards and bank transfers and have since adapted by integrating diverse payment options. For instance, Apple Pay has become the most popular digital wallet in the UK while PayPal has now become almost as common in the US as bank cards. Still, online shoppers and gamers in some other countries can enjoy some alternative payment brands, such as Vega Wallet, designed specifically for the Japanese market. In that light, Japanese iGamers playing on a Vegawallet casino platform don’t need to pay any transaction fees for most online deposits and withdrawals while enjoying near-instant withdrawal intervals from their iGaming accounts to Vega Wallet.
In the UK, on the other hand, there’s a fierce discussion about the ways in which digital payment methods are used for iGaming, including the question of taxes.
These factors have played a role in increasing Gross Betting Duty (GBD) receipts from £343 million in April-September 2023 to £360 million over the same period in 2024.
Esports are also starting to become a big player in the digital entertainment scene, as this sector is projected to generate around £150 million in revenue this year from streaming platforms, competitive gaming events, and merchandise sales. What has made this industry so successful is that platforms like Twitch and YouTube Gaming have fostered robust communities, where millions of people tune in daily to watch live games and engage with content creators.
The primary demographic that spends the most on esports has been young adults aged 18 to 34, whose purchases also include in-game microtransactions and event tickets. This young demographic has attracted many brands that are eager to tap into this growing audience due to its long-term growth potential.
However, e-commerce platforms are still a major driver of consumer spending in the UK, as online shopping now accounts for over 30% of total retail sales. E-commerce's continued growth has been mainly driven by a strong desire for convenience and variety among consumers.
The leading categories in this sector have been electronics, clothing, and groceries whose strong performance is playing a crucial role in total e-commerce revenues in the UK being projected to reach £160 billion by the end of this year. The good news is that many retailers are responding to this demand by utilizing innovations like drones and automated logistics even more.
Lastly, the common theme in the growth of these sectors has been technological developments that have helped make buying, consuming media, and gambling easier and more accessible. Additionally, what we’ve seen with the rise of esports and more community-centred online gambling options is that the social aspect is becoming more important in digital transactions.
This shift in consumer behaviour is a reflection of a wider cultural movement toward requiring businesses to prioritize convenience and community engagement. The fact that these sectors have made traditional markets more accessible has also contributed a lot to this growth as it has opened up an avenue for more individuals to participate in them.
