Table of Contents
Executive Summary
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- The market
- Growth is back – but at a slower pace
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- Figure 1: Forecast of consumer expenditure* on retail** gambling, 2010/11-2020/21***
- Market’s fortunes swing on lotteries and slots
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- Figure 2: Consumer expenditure on retail gambling, by segment, 2014-15
- Companies and brands
- Smaller players continue to be squeezed
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- Figure 3: Licensed gambling premises, March 2013-September 2015
- One-off factors drive investment in advertising
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- Figure 4: Change in lottery and betting shop operators’ monitored above-the line, online display and direct mail advertising expenditure, 2013-15
- The consumer
- Participation slips as lotteries lose out
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- Figure 5: Participation in gambling activities, March 2015-April 2016
- Punters still backing just one horse
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- Figure 6: Methods of participation in gambling activities, April 2016
- Lone gamblers happy with their hobby
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- Figure 7: Gambling habits, April 2016
- Standards of service still the heart of retail appeal
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- Figure 8: Satisfaction with aspects of most recent gambling experience - in a venue, April 2016
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- Figure 9: Satisfaction with aspects of most recent gambling experience - online, April 2016
- Nothing to share with social media
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- Figure 10: Influence of social media on gambling activity, April 2016
- What we think
Issues and Insights
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- What does the multichannel future look like?
- The facts
- The implications
- Who will gain from the culture of instant-win?
- The facts
- The implications
The Market – What You Need to Know
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- Growth returns at a slower pace
- Lottery and gaming machines set the pace
- Smaller players continue to feel the pinch
- Multichannel operations need to be the same but different
- Stakes and prizes review to put B2 machines back on trial
Market Size and Forecast
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- Spending grows – but at a slower pace
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- Figure 11: Consumer expenditure* on retail** gambling, 2010/11-2020/21
- Forecast
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- Figure 12: Forecast of consumer expenditure* on retail** gambling, 2010/11-2020/21
- Forecast Methodology
Market Segmentation
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- Lottery and machine play the winning pair for growth
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- Figure 13: UK retail gambling market, by segment, 2012/13-2014/15
- Lottery sales stay up to scratch
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- Figure 14: Lottery game sales, by segment, 2010/11-2014/15
- Bingo clubs and betting shops diversify gaming machine offer
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- Figure 15: Consumer expenditure* on gaming machines, by location, 2010/11-2014/15
- Retail betting takes a leaf out of the online sportsbook
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- Figure 16: Consumer expenditure on betting*, 2010/11-2014/15
- Casino gaming builds in growth
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- Figure 17: Consumer expenditure on casino games, 2010/11-2014/15
- Bingo wins on tax change
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- Figure 18: Consumer expenditure on bingo, 2011-2015
- Pools stuck with that sinking feeling
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- Figure 19: Consumer expenditure on football pools, 2010/11-2014/15
Market Drivers
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- Pressure on profits closes smaller players’ doors
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- Figure 20: Licensed gambling premises, by activity, March 2013-September 2015
- Recovery slow to reach the gambling high street
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- Figure 21: Unemployment rate, December 2005-February 2016
- Omnichannel v multichannel: Uniformity or differentiation?
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- Figure 22: Consumer expenditure* on gambling, by channel, 2015
- Technology focus moves towards mobile
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- Figure 23: Ownership of mobile phones, January 2012-December 2015
- Fewer people at risk – but problem gambling issue will not go away
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- Figure 24: Incidence of problem and at-risk gambling, 2013-15
Regulatory and Legislative Changes
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- Machine stakes and prizes up for Triennial Review
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- Figure 25: Gaming machine stake and prize limits, May 2016
- Umbrella lotteries under a cloud
- Point-of-consumption tax levels the playing field
- New currency to cash out old machines?
Companies and Brands – What You Need to Know
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- Big names tighten their grip
- Merger plans to change the shape of betting shops
- Bingo brands reach out for new crowds
- Leaders’ adspend moves in different directions
Market Share
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- Lottery challengers run neck and neck
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- Figure 26: UK lottery sales, by operator share, 2014/15
- Ladbrokes-Coral merger to shake up betting shop shares
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- Figure 27: UK betting shops, by operator share, September 2015
- Big two of bingo entrench dominant position
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- Figure 28: UK bingo clubs, by operator share, February 2016
- Genting to gain from major new opening
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- Figure 29: UK casinos, by operator share, February 2016
- Arcades segment still highly fragmented
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- Figure 30: UK Adult Gaming Centres, by operator share, September 2015
Launch Activity and Innovation
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- Fantasy sports become a retail reality
- New bingo concepts aim for fuller houses
- Progressive jackpots move from slots to table games
- Mobile moves further into the retail gambling mix
- Faster payments to streamline the venue experience
Advertising and Marketing Activity
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- Lotteries and betting shops swap adspend trends
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- Figure 31: Retail gambling operators’ monitored above-the line, online display and direct mail advertising expenditure, 2013-15
- Nielsen Media Research coverage
Company Profiles
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- Camelot UK Lotteries
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- Figure 32: Camelot UK Lotteries Limited key financials, 2010/11-2014/15
- William Hill
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- Figure 33: William Hill retail key financials, 2014-15
- Gala Bingo
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- Figure 34: Gala Bingo KPIs, 2014-15
- Rank Group
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- Figure 35: Grosvenor Casinos KPIs, 2014-15
- Sportech
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- Figure 36: Sportech Football Pools division KPIs, 2014-15
- Talarius
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- Figure 37: Talarius key financials, 2014-15
The Consumer – What You Need to Know
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- Lottery losses cut participation rate
- Multichannel play a minority sport
- Hobby gamblers a new target group?
- Web standards the benchmark for retail ambition
- Social media unliked and unloved
Gambling Activities
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- Lotto players vote with their feet
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- Figure 38: Participation in gambling activities, March 2015-April 2016
- Punters stick to singles
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- Figure 39: Gambling activity repertoires, April 2016
- Few easy wins in growing the player pool
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- Figure 40: Interest in future participation in gambling activities not currently taken part in, April 2016
Methods of Gambling
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- Omnichannel focus brings web players to the high street
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- Figure 41: Methods of participation in gambling activities, April 2016
- Crossover needed to kick-start retail player base
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- Figure 42: In-person versus online participation in gambling, by activity, March 2015-April 2016
Gambling Habits
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- Bowling alone?
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- Figure 43: Gambling habits, April 2016
- Women ready to act on impulse
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- Figure 44: Agreement with the statement “I usually gamble on impulse (eg when I feel like it)”, by demographics, April 2016
Satisfaction with Gambling Experiences
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- Gambling venues offer a satisfying experience
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- Figure 45: Satisfaction with aspects of most recent experience of gambling in a venue, April 2016
- Online functionality the benchmark for retail rivals
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- Figure 46: Satisfaction with aspects of most recent experience of gambling online, April 2016
Gambling and Social Media
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- Social media marketing needs a more personal touch
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- Figure 47: Influence of social media on gambling activity, April 2016
- Few followers in retail
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- Figure 48: Influence of social media on gambling activity, by method of participation in gambling, April 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Figure 49: Forecast of consumer expenditure on retail gambling, 2015/16-2020/21
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