Gambling Review - UK - July 2009

ISSUES IN THE MARKET
Main issues
Definition
Abbreviations
FUTURE OPPORTUNITIES
Turn in your ciggies at the door
Winning something other than money
Measuring success
Roll out the betting barrel
MARKET IN BRIEF
Will gambling prove to be recession proof?
The lottery and online performing well…
…but bingo and casinos continue to struggle
Betting shops benefiting from B2s
Innovation in approach but not advertising
More than half of people gamble in some form
Problem gambling still a divisive issue
INTERNAL MARKET ENVIRONMENT
Key points
Legislation and taxation
Major unrest amongst bookmakers
Tackling corruption and betting irregularities
Problem gambling
Figure 1: Problem gamblers, amongst those gambling on an activity in the past year, 2007
Battling the smoking ban
Figure 2: Cigarette smoking, by participation in selected leisure activities, Oct-Dec 2008
Participation trends by sector…
… and views of gamblers
BROADER MARKET ENVIRONMENT
Key points
Is gambling recession proof?
Figure 3: Trends in selected areas of discretionary expenditure, at current and constant prices, 1989-94
Consumer perceptions of the recession
Figure 4: Trends in statements relating to the economic downturn, February 2009-June 2009
A quarter are living on the edge
Figure 5: Trends in how respondents would describe their financial situation, February 2009-June 2009
The impact on the leisure industry
Figure 6: Impact of the recession on leisure activities, April 2009
A net loss to the industry
Figure 7: Financial attitudes towards gambling, April 2009
Unemployment provides a double whammy to gambling
Figure 8: Employment trends, by gender, 2004-14
Growth in young adults a positive trend for many gambling sectors
Figure 9: Trends in the age structure of the UK population, by gender, 2004-14
Lotto: A younger focus?
Optimism for bingo and casinos
A wealthier society in future?
Figure 10: Forecast adult population trends, by socio-economic group, 2004-14
COMPETITIVE CONTEXT
Key points
Leisure spend by sector
Figure 11: Consumer expenditure on selected leisure goods and activities, 2003-08
Gambling and the 80/20 rule
Figure 12: Participation in leisure activities, 2004-08
Online vs in person
Figure 13: Use the internet for betting, poker and casino games, 2004-08
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Digital signage replacing old and tired boards
Mfuse makes mobile gambling more accessible
Any time, any place
Betting systems
MARKET OVERVIEW
Key points
Figure 14: UK gambling stakes, by sector, 2004-08
SEGMENT PERFORMANCE
Key points
Casinos struggling to adapt
Figure 15: Total expenditure in UK casinos, 2003-13
Bingo
Figure 16: Bingo club turnover and admissions, year ending March, 2004-14
Betting shops
Figure 17: UK betting shop market size, by value* and volume, 2005-14
Gaming machines
Figure 18: UK gaming machines installed base, 2003-13
Lottery
Figure 19: National Lottery sales trends and forecast, 2002/03-2012/13
MARKET SHARE
Key points
Bingo
Figure 20: The largest bingo club operators, by outlet numbers, 2007-08
Casinos
Figure 21: Market share of casinos in the UK, by operator, February 2009
Betting shops
Figure 22: UK betting shop market, by number of outlets, 2009
BRAND COMMUNICATION AND PROMOTION
Key points
Topline ad spend
Figure 23: Gambling companies’ topline adspend, 2004-08
How the Top 10 by ad spend allocated budgets
COMPANIES AND BRANDS
Key points
Major players
Camelot
Figure 24: National Lottery sales trends and forecast, 2004/05-08/09
Gala Coral Group
Figure 25: Key financial indicators, Gala Coral Group, 2005-08
Genting UK
Figure 26: Key financial indicators, Genting Stanley, 2004-08
Grosvenor Casinos
Figure 27: Key financial indicators, Grosvenor Casinos Ltd, 2004-08
International Gaming Technology UK
Figure 28: Key financial indicators, International Gaming Technology (IGT) UK, 2004-08
Inspired Gaming Group
Figure 29: Key financial indicators, Inspired Gaming Group, 2006-08
Ladbrokes
Figure 30: Key financial indicators, Ladbrokes UK, 2004-08
Mecca Bingo
Figure 31: Key financial indicators, Mecca Bingo, 2004-08
William Hill
Figure 32: Key financial indicators, William Hill, 2004-08
LEVEL OF GAMBLING
Key points
What do people gamble on and how often?
Figure 33: Activities people gamble on, April 2009
Lotto thriving in the recession
Betting shops
Gaming machines
Casinos/poker
Dog and horse race tracks
Bingo
ATTITUDES TOWARDS PROBLEM GAMBLING
Key points
Good time gamblers
Figure 34: Attitudes towards gambling, April 2009
‘Soft’ vs ‘hard’ gamblers
Figure 35: General attitudes towards gambling, by most popular activities, April 2009
Figure 36: General attitudes towards gambling, by next most popular activities, April 2009
Figure 37: General attitudes towards gambling, by other attitudes, April 2009
Liberals vs the concerned
NUMBER OF GAMBLING ACTIVITIES DONE
Key points
Gamblers just in the majority
Figure 38: Number of gambling activities done in person in the last 12 months, April 2009
Specific target groups by activity
Figure 39: CHAID analysis of gambling activities done in the last 12 months, April 2009
APPENDIX – INTERNAL MARKET ENVIRONMENT
Bookmakers
Figure 40: Trends in use of bookmakers or betting exchanges, 2004-08
Figure 41: Use of bookmakers, by delivery platform, 2004-08
Figure 42: Trends in frequency of usage of bookmakers/betting exchanges, 2004-08
Sports bet on
Figure 43: Trends in sports bet on, 2004-08
Games and betting done
Figure 44: Games and betting done in last 12 months, 2004-08
Figure 45: Games and betting done in last 12 months, by other games and betting done,Oct-Dec 2008
Figure 46: Games and betting done in last 12 months, by other games and betting done,Oct-Dec 2008
Figure 47: Games and betting done in last 12 months, by demographic sub-group, 2008
Figure 48: Games and betting done in last 12 months, by demographic sub-group, 2008
Casinos
Figure 49: Casino gambling participation, Oct-Dec 2007-08
Gaming machines
Figure 50: Gaming machine participation, Oct-Dec 2004-08
Bingo
Figure 51: Bingo participation*, Oct-Dec 2004-08
APPENDIX – BROADER MARKET ENVIRONMENT
Figure 52: Trends in personal disposable income and consumer expenditure, 2004-14
Figure 53: Forecast adult population trends, by lifestage, 2004-14
The impact of the recession
Figure 54: Trends in the impact of the economic downturn on consumers, January 2009-June 2009
Future financial situation
Figure 55: Trends in consumer sentiment for the coming year, January 2009-June 2009
Figure 56: Financial attitudes towards gambling, by demographic sub-group, April 2009
APPENDIX – BRAND COMMUNICATION AND PROMOTION
Figure 57: Adspend by category, 2006-08
Figure 58: Adspend by media type, 2006-08
Figure 59: Adspend, by company, 2006-08
Figure 60: Monthly adspend, 2006-08
Figure 61: Average monthly adspend. 2006-08
APPENDIX – LEVEL OF GAMBLING
Figure 62: Most popular activities people gamble on, by demographic sub-group, April 2009
Figure 63: Next most popular activities people gamble on, by demographic sub-group, April 2009
APPENDIX – ATTITUDES TOWARDS GAMBLING
Figure 64: General attitudes towards gambling, by demographic sub-group, month 2009
APPENDIX – NUMBER OF GAMBLING ACTIVITIES DONE
Figure 65: Number of gambling activities done in person in the last 12 months, by demographic sub-group, April 2009