Report Summary
Everything you need to make the right decisions
Providing the most comprehensive and up-to-date information and analysis of the Betting Shops market, and the behaviours, preferences and habits of the consumer.
Mintel has the answers you’re looking for
What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?
Covered in this report
For the purposes of this report, Mintel defines a betting shop as a
licensed premises located in a public place to which adults (over18s) 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 fixed odds betting terminals (FOBTs).
These machines feature traditional casino games such as roulette
and blackjack, and offer a maximum payout of £500 per spin
(from a maximum £2 stake). The stake limit was reduced from
£100 to £2 in April 2019. B3 category machines, which tend to
feature slot-based games, can also be found in some betting
shops and have the same maximum stake/payout.
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.
Expert analysis from a specialist in the field
Written by Zameira Hersi, a leading analyst in the Leisure sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
With the new stake limit coming into play, the future looks bleak for the betting shops market. If operators can move away from their heavy reliance on gaming machines and towards improving customer experience and promoting a community spirit, they’re more likely to weather the storm
Zameira Hersi
Leisure Analyst
Table of Contents
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Overview
- What you need to know
- Products covered in this Report
- What you need to know
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Executive Summary
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- The market
- Market has experienced an inevitable decline…
- …and the trend is expected to continue
- Figure 1: Forecast of consumer expenditure in betting shops, 2013/14-2023/24
- Drop in staple over-the-counter bets
- Figure 2: Consumer expenditure on betting in betting shops, 2015/16-2017/18
- New stake comes into play
- Bookmakers can now focus on boosting the experience
- Community spirit
- Companies and brands
- Slight decline in betting shop numbers
- Things are looking bleak…
- …but not for all
- Figure 3: UK betting shop numbers, by operator, September 2018
- The consumer
- Almost 9 in 10 adults have never visited a betting shop
- Figure 4: Betting shop visiting habits, February 2019
- Majority visit to place bets over the counter
- Figure 5: Participation in betting shop activities, February 2019
- The bulk of visitors place bets on horse racing
- Figure 6: Bets placed in betting shops, February 2019
- Good social interactions are sought after
- Figure 7: Drivers for visiting betting shops, February 2019
- A quarter place bets on sports online
- Figure 8: Online behaviour, February 2019
- What we think
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Issues and Insights
- New stake limit – Unmasking the opportunities
- The facts
- The implications
- Bringing communities together
- The facts
- The implications
- New stake limit – Unmasking the opportunities
-
The Market – What You Need to Know
- Market has experienced an inevitable decline…
- …and the trend is expected to continue
- Drop in staple over-the-counter bets
- New stake coming into play
- Community spirit
- Market has experienced an inevitable decline…
-
Market Size and Forecast
- Market has experienced an inevitable decline…
- Figure 9: Consumer expenditure in UK betting shops, 2013/14-2023/24
- …and the trend is expected to continue
- Figure 10: Forecast of consumer expenditure in betting shops, 2013/14-2023/24
- Betting GGY is in decline
- Figure 11: UK betting shops gross gambling yield (GGY), by segment, 2015/16-2018/19
- Drop in staple over-the-counter bets
- Figure 12: Consumer expenditure on betting in betting shops, 2015/16-2017/18
- Forecast methodology
- Market has experienced an inevitable decline…
-
Market Drivers
- Problem gambling
- New stake coming into play
- Bookmakers can help identify problem gamblers
- Driving the problem underground
- Community spirit
- Problem gambling
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Companies and Brands – What You Need to Know
- Slight decline in betting shop numbers
- Things are looking bleak…
- …but not for all
- Testing the limit
- Ladbrokes Coral among the first to extend coverage of greyhound racing
- Ladbrokes continues to invest heavily in ATL advertising
- Paddy Power Betfair invests in shop technology
- Slight decline in betting shop numbers
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Market Share
- Slight decline in betting shop numbers
- Things are looking bleak…
- …but not for all
- Figure 13: UK betting shop numbers, by operator, September 2018
- Slight decline in betting shop numbers
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Launch Activity and Innovation
- Testing the limit
- Setting sights across the pond
- Ladbrokes hits the target with PDC sponsorship
- Betfred named as the title sponsor of golf’s British Masters
- Betfred makes a generous donation
- Ladbrokes Coral among the first to extend coverage of greyhound racing
- Testing the limit
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Advertising and Marketing Activity
- Ladbrokes continues to invest heavily
- Figure 14: Main monitored media advertising spend of UK betting shop operators, 2015-18
- Nielsen Ad Intel coverage
- Ladbrokes continues to invest heavily
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Company Profiles
- Ladbrokes Coral
- Figure 15: Ladbrokes Coral retail KPIs, 2017 and H1 2018
- William Hill
- Figure 16: William Hill retail KPIs, 2017-18
- Betfred
- Figure 17: Betfred KPIs, 2016-17
- Paddy Power Betfair
- Figure 18: Paddy Power Betfair retail KPIs, 2017-18
- Ladbrokes Coral
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The Consumer – What You Need to Know
- Almost 9 in 10 adults have never visited a betting shop
- Majority visit to place bets over the counter
- The bulk of visitors place bets on horse racing
- Good social interactions are sought after
- A quarter place bets on sports online
- Almost 9 in 10 adults have never visited a betting shop
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Betting Shop Visiting
- Almost 9 in 10 adults have never visited a betting shop
- Figure 19: Betting shop visiting habits, February 2019
- Skew towards males
- Almost 9 in 10 adults have never visited a betting shop
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Betting Shop Activities
- Majority visit to place bets over the counter
- Figure 20: Participation in betting shop activities, February 2019
- Majority visit to place bets over the counter
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Bets Placed in Betting Shops
- The bulk of visitors place bets on horse racing
- Opportunity to win over sport betting fans
- Figure 21: Bets placed in betting shops, February 2019
- The bulk of visitors place bets on horse racing
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Drivers of Visiting
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- Good social interactions are sought after
- Figure 22: Drivers for visiting betting shops, February 2019
- Link to the community
- The youth value a modern look
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Online Betting Activities
- A quarter place bets on sports online
- Figure 23: Online betting activities, February 2019
- Sports betting dominated by men
- Younger adults more likely to bet on sport online
- A quarter place bets on sports online
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Appendix – Data Sources, Abbreviations and Supporting Information
- Data sources
- Abbreviations
- Consumer research methodology
- Data sources
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Appendix – Market Size and Forecast
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- Figure 24: Forecast of consumer expenditure in UK betting shops, 2018/19-2023/24
- Fan chart forecast
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About the report
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Brand/Company
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