Expanding gaming machine revenues continue to compensate for declining over-the-counter trade and keep the UK betting shops market in growth, but a range of structural, regulatory and taxation changes predict a slower future for the segment.

In response, operators are looking to revitalise sports betting by bringing online products into the retail environment as part of wider efforts to strengthen brand loyalty through ‘omnichannel’ play.

The self-service betting terminals through which this convergence is being achieved have an immediate role to play in introducing more shop gamblers to online participation but may need to evolve further as tech-savvy demographics come to dominate the customer base.

With the gambling market’s growing culture of immediacy and spontaneity chiming with wider consumer trends towards personalisation, speed and convenience, adding smartphone connectivity to the self-serve picture should be the next step towards sustainable long-term growth.

For the purposes of this Report, Mintel defines a betting shop as a licensed premises located in a public place to which adults (over-18s) can go to place a bet (over the counter or via a self-service terminal) or to play gaming machines.

Gaming machines in shops generally refer to B2 category machines (also known as FOBTs). These machines feature traditional casino games such as roulette and blackjack, and offer a maximum payout of £500 per spin (from a maximum £100 stake), although lower-value B3 content is typically also available.

The term ‘gross gambling yield’ (GGY) refers to total stakes or any amount (exclusive of taxes) that will otherwise accrue to the licensee, minus consumers’ winnings. This is also referred to as ‘consumer expenditure’ within the report.