Table of Contents
Issues in the Market
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- Main issues
- Definition
- Abbreviations
Insights and Opportunities
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- Non-gambling incentives
- Bet in-play, in-stadium
- Leisure brands for a leisure casino
Market in Brief
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- No sudden flood of punters
- Protecting consumers: Meeting public demand
- Protecting consumers: Who foots the bill?
- Industry attitudes coloured by outside influences…
- …which have made positives slow to be felt
- Commercials a bad advert for gambling
- Remote regulation an ante-post bet
- Machine entitlements a winner for bookmakers…
- …but fail to pay out for AGCs and bingo
- No mood in government for further concessions
- Industry circles the wagons
Fast Forward Trends
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- Trend 1: Diversity is All
- What’s it about?
- Observations
- What next?
- Trend 2: Rethinking Business, Capitalism and Consumerism
- What’s it about?
- Observations
- What next?
Internal Market Environment
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- Key points
- The Gambling Act 2005: What’s new?
- Premises licensing
- Increased costs hit smaller operators
- Licensing fees reviewed in 2008
- Casinos
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- Figure 1: Local authorities permitted to license a new casino under the Gambling Act 2005
- Bingo
- Remote gambling
- Gaming machines
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- Figure 2: Maximum permitted numbers of gaming machines, by type of premises, May 2008
- Betting
- Advertising
- Post-Act legislation: What’s newer
- Movement on bingo machine numbers
- Review of low-level stakes and prizes
- Change in casino policy
- Consultation on split premises
- Taxation
- Casinos
- Bingo
- FOBTs
- Remote gaming
- No change on the horizon
- The smoking ban
- Gambling feels the strain more than most
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- Figure 3: Cigarette smoking, by participation in selected leisure activities, 2008
- Problem gambling
- Where do the problems lie?
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- Figure 4: Calls made to GamCare, by gambling activity, 2005 and 2006
- Research funding
Broader Market Environment
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- Key points
- Is gambling’s recession-proofing beginning to crack?
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- Figure 5: Trends in selected areas of discretionary expenditure, at current and constant prices, 1989-94
- Wise up to an older crowd
- Gambling Act reinforces socio-economic trends
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- Figure 6: Adult population trends, by socio-economic group, 2003-13
- Technological innovation to drive the market forward
Competitive Context
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- Key points
- The leisure market: Who can lose least?
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- Figure 7: Consumer expenditure on selected leisure goods and activities, 2002-07
- The gambling market: Winners and losers
- An increasingly competitive Act
- Machine entitlements determine payouts
Strengths and Weaknesses in the Market
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- Strengths
- Facilities
- Innovation
- Economic freedoms
- Consumer confidence
- Competition and choice
- Weaknesses
- Exposure to economic downturn
- Machine offerings
- Costs
- Lack of preparation
- Prejudice
Who's Innovating?
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- Key points
- Split premises: Divide and conquer?
- Loyalty schemes a winning bet
- Self-exclusion goes all-inclusive
- Dipping toes in the water with pools licences
Sector Analysis
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- Key points
- Gambling stakes by sector
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- Figure 8: UK gambling stakes, by sector, 2004-08
- Betting
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- Figure 9: Use of bookmakers, 2005-08
- Economic climate freezing out gains
- B2 machines churning out more profits
- Telephone betting: Fewer lines busy
- Commission licences increasing costs
- Football pools
- Pools feel ripple effects only
- Game goes on the attack
- Casinos
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- Figure 10: Casino gambling participation, 2007 and 2008
- Act enables new entertainment focus
- Machine numbers and licence fees the main negatives
- Cost cutting takes priority
- Gaming machines
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- Figure 11: Gaming machine participation, 2005-08
- Playing the post-Act blame game for longer-term decline
- Government immune to charms of AGCs
- Bingo
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- Figure 12: Bingo participation*, 2005-08
- Many factors contribute to decline…
- …but machine numbers tip the balance
- Consumer jury still out on new post-Act games
- Crossing over to online play: Can it be a two-way street?
- National Lottery
- Increased competition threatens draw sales, but creates opportunities elsewhere
- Remote gambling
- A lucrative and ever-expanding market
- Remote market makes a little go a long way
- Act breeds confidence in mobile gaming
Trade Perspective
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- Key points
- New regulatory system welcomed – in principle at least
- Right place, wrong time
- Some instant wins…
- …but most sectors still waiting for the wheel to turn their way
- Machines and fees create most dissent
- Two responses: Cut costs and add value
- The future: No holding the hand of an industry sent out on its own
Brand Communication and Promotion
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- Key points
- Brands still careful with their money
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- Figure 13: Gambling industry advertising expenditure*, pre- and post-Gambling Act, 2006/07 and 2007/08
- Little lure of the small screen
- Not a value bet for bookmakers
- Casinos have other wheels to spin
- Remote players need to build brands
- Responsibility high on the ad agenda
Case Studies
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- Key points
- Betting: Ladbrokes
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- Figure 14: Ladbrokes plc, UK retail interim results, 2007 and 2008
- Bingo: Mecca Bingo
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- Figure 15: Rank Group plc, Mecca Bingo division interim results, 2007 and 2008
- Casinos: Grosvenor Casinos
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- Figure 16: Rank Group plc, Grosvenor Casinos division interim results and key performance indicators, 2007 and 2008
- Gaming machines: INGG
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- Figure 17: INGG plc, interim results (continuing operations), 2007 and 2008
Consumers’ Post-Act Gambling Habits
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- Key points
- Gambling participation so far unaffected
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- Figure 18: Gamblers vs non-gamblers, 2007 and 2008
- Now a strongly segmented market
- Betting shops set pace for growth
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- Figure 19: Gambling activities done in the last 12 months, 2007 and 2008
- Cross-sector contest for customers not yet at post
- New bingo crowd ripe for growth online
Consumer Perceptions of the New Gambling Landscape
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- Key points
- TV promotion: A bad advert for gambling?
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- Figure 20: Attitudes towards gambling, August 2008
- Negative sentiments remain strong with the core demographic
- Is advertising working?
- Bigger prizes don’t mean fuller houses
- Super-casino a missed opportunity
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- Figure 21: Selected attitudes towards casinos, August 2008
- Not a Lotto crossover potential
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- Figure 22: Attitudes towards gambling, by type of gambler, August 2008
- Super-casino could have proved a super-cannibal
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- Figure 23: Selected attitudes towards casinos, by type of gambler, August 2008
- Scratchcard players like the look of bingo rollovers
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- Figure 24: Attitudes towards gambling, by gambling activities done in the last 12 months, August 2008
- Old dogs dislike new tricks
- Cloud of the smoking ban begins to clear
- Sports bettors split on casinos
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- Figure 25: Selected attitudes towards casinos, by gambling activities done in the last 12 months, August 2008
Consumer Perceptions of ‘Problem Gambling’
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- Key points
- Public seeking safety
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- Figure 26: Perceptions of gambling activities as addictive or dangerous, August 2008
- Access or experience? How consumers perceive danger
- Non-gamblers’ fear of the known
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- Figure 27: Perceptions of gambling activities as addictive or dangerous, by type of gambler, August 2008
- Lottery players a breed apart
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- Figure 28: Perceptions of gambling activities as addictive or dangerous, by gambling activities done in the last 12 months, August 2008
Appendix – Broader Market Environment
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- Figure 29: Trends in the age structure of the UK population, by gender, 2003-13
- Figure 30: Adult population trends, by lifestage, 2003-13
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Appendix – Consumers’ Post-Act Gambling Habits
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- Gamblers vs. non-gamblers – detailed demographics
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- Figure 31: Gamblers vs non-gamblers, by demographic sub-group, August 2008
- Gambling activities – detailed demographics
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- Figure 32: Gambling activities done in the last 12 months, by demographic sub-group, August 2008
Appendix – Consumer Perceptions of the New Gambling Landscape
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- Attitudes towards gambling – detailed demographics
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- Figure 33: Attitudes towards gambling, by demographic sub-group, August 2008
- Attitudes towards casinos – detailed demographics
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- Figure 34: Selected attitudes towards casinos, by demographic sub-group, August 2008
- Combinations of attitudes
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- Figure 35: Attitudes towards gambling, by other attitudes towards gambling, August 2008
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- Figure 36: Attitudes towards gambling, by selected attitudes towards casinos, August 2008
Appendix – Consumer Perceptions of ‘Problem Gambling’
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- Activities seen as addictive/dangerous – detailed demographics
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- Figure 37: Gambling activities most likely to be perceived as addictive or dangerous, by demographic sub-group, August 2008
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- Figure 38: Gambling activities next most likely to be perceived as addictive or dangerous, by demographic sub-group, August 2008
- Attitudes towards gambling, by activities seen as addictive/dangerous
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- Figure 39: Attitudes towards gambling, by gambling activities most likely to be perceived as addictive or dangerous, August 2008
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- Figure 40: Attitudes towards gambling, by gambling activities next most likely to be perceived as addictive or dangerous, August 2008
- Attitudes towards casinos, by activities seen as addictive/dangerous
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- Figure 41: Selected attitudes towards casinos, by gambling activities most likely to be perceived as addictive or dangerous, August 2008
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- Figure 42: Selected attitudes towards casinos, by gambling activities next most likely to be perceived as addictive or dangerous, August 2008
- Combinations of activities seen as addictive/dangerous
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- Figure 43: Gambling activities perceived as addictive or dangerous, by other activities most likely to be perceived as addictive or dangerous, August 2008
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- Figure 44: Gambling activities perceived as addictive or dangerous, by other activities next most likely to be perceived as addictive or dangerous, August 2008
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