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Gambler (The) - UK - June 2007

ISSUES IN THE MARKET
Main issues
Definition
 ABBREVIATIONS
INSIGHTS AND OPPORTUNITIES
Getting technical at sports venues
Poker fascia for gaming machines?
The casino experience at home and abroad
MARKET IN BRIEF
New legislation to shape the sector from 2007
The super-casino – bringing Vegas to the UK?
Technical innovation driving the market forward
A gambling nation?
Negative perceptions dog the industry
FAST FORWARD TRENDS
Trend 1: Back to the Future
What's it about?
Observations
What next?
Trend 2: Horizontal Communities
What's it about?
Observations
What next?
Trend 3: Non-standard Society
What's it about?
Observations
What next?
INTERNAL MARKET ENVIRONMENT
Key points
 THE GAMBLING ACT 2005
All change in September 2007
The Gambling Commission takes the reins
Casino boom on the way
Other freedoms signal a bright future
Gaming machines shake-up
Figure 1: New gaming machine classifications, February 2007
Looking out for problem gamblers
Section 16 and Section 21 machines on their way out
Bingo prizes to swell
Disappointment with the new Act
Betting shops take several positives
Lottery players to show their skills
Remote gambling set for further expansion
Social responsibility
Poker to feel the pressure of greater restrictions
Poker clubs join forces
The Gutshot case
 TAXATION
Gaming machine tax brought into line
Remote Gaming Duty higher than expected
New top rate for casinos
Figure 2: Gaming duty bands, 2006 and 2007
Bingo operators complain over ‘double taxation’
 THE SMOKING BAN
Bingo-ing up in smoke?
Casinos to take a hit?
Minimal impact for betting shops…
…with online operators to reap the rewards
US shuts up shop on online gambling
BROADER MARKET ENVIRONMENT
Key points
 DEMOGRAPHIC AND ECONOMIC TRENDS
Ageing population presents challenges and opportunities
Figure 3: Trends in the age structure of the UK population, by gender, 2002-12
ABC1 population continues to expand
Figure 4: Forecast adult population trends, by socio-economic group, 2002-12
Lower socio-economic groups more vulnerable?
Changing player profiles
Women’s spending power increasing
Figure 5: UK workforce, by gender, 2002-12
Growth in PDI set to slow
Figure 6: Trends in personal disposable income and consumer expenditure, 2002-12
 TECHNOLOGY USAGE
The Internet goes from strength to strength
Figure 7: Computer, Internet and broadband take-up, 2002-06
Tuned in to a digital future
Figure 8: UK multichannel TV penetration, by platform, 2001-06
COMPETITIVE CONTEXT
Key points
Competition for the leisure pound
Figure 9: Consumer expenditure on selected leisure goods and activities, 2002-06
Betting on a good night out
Las Vegas, UK-style?
In-home leisure and other non-essential spending
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Gambling on the go
Camelot spreads its net
Virgin Poker targets poker virgins
Learning to fly
MARKET SIZE, SEGMENTATION AND FORECAST
Key points
Market size
Figure 10: The UK gambling market, 2002-07
Deregulation to spark boom time for the market
The online sector: threats and opportunities
Market segmentation
Figure 11: UK gambling stakes, by key sector, 2002-06
Tax change sparks betting boom
Casinos next for expansion
Bingo set to suffer
Turnaround for the Lottery
Gaming machines feeling the pinch
Net expenditure growth lags behind stakes
Figure 12: UK gambling net expenditure, by key sector, 2002-06
Figure 13: Proportion of prizes to stakes, by key sector, 2006
 FORECAST – SCENARIOS
Scenario 1: Static
Figure 14: Forecast of gambling target groups, scenario 1, 2007-12
Scenario 2: Optimistic
Figure 15: Forecast of gambling target groups, scenario 2, 2007-12
BRAND COMMUNICATION AND PROMOTION
Key points
Tight reins to be loosened…
…but restrictions will still apply
Online operators to lead the spending boom
Bingo still trails the Lottery in TV stakes
Figure 14: TV advertising expenditure on bingo operators and the National Lottery (Camelot Group PLC), 2003-06
Online bingo campaigns point the way
THE CONSUMER – WHO GAMBLES?
Key points
Gamblers vs non-gamblers
Figure 15: Gamblers versus non-gamblers, February 2007
Gamblers vs non-gamblers – who are they?
Figure 16: Gamblers versus non-gamblers, by demographic sub-group, February 2007
Gambling activities
Figure 17: Gambling activities done in the last 12 months, February 2007
Who gambles on what?
Figure 18: Gambling activities done in the last 12 months, by demographic sub-group, February 2007
Targeting the young – a risky proposition
Low-income groups more vulnerable?
iTV gambling primed for take-off
Gambling combinations
Figure 19: Combinations of types of gambling, February 2007
Lottery softies?
Game on for fruit machine players
THE CONSUMER – HABITS AND MOTIVATIONS
Key points
 LOCATIONS AND METHODS OF GAMBLING
Figure 20: Locations/methods of gambling used in the last 12 months, February 2007
In-person vs online
Figure 21: Selected locations/methods of gambling used, by selected gambling activities done in the last 12 months, February 2007
Betting shop users yet to fully embrace online gambling
Figure 22: Locations/methods of gambling used in the last 12 months, by other locations/methods used, February 2007
Who gambles where?
Figure 23: Locations/methods of gambling used in the last 12 months, by demographic sub-group, February 2007
 WHY?
Figure 24: Main gambling motivation, February 2007
Lottery players in it for the money
Figure 25: Main gambling motivation, by gambling activities done in the last 12 months, February 2007
What motivates different groups?
Figure 26: Main gambling motivation, by demographic sub-group, February 2007
THE CONSUMER – ATTITUDES TOWARDS GAMBLING
Key points
Negative perceptions of the industry
Figure 27: Attitudes towards gambling, February 2007
Attitudes towards gambling – demographic analysis
Figure 28: Most popular attitudes towards gambling, by demographic sub-group, February 2007
Figure 29: Further attitudes towards gambling, by demographic sub-group, February 2007
Old heads express concern
Venues not catering for ABs
North West primed for the super-casino
The influence of gambling activities on attitudes
Figure 30: Attitudes towards gambling, by gambling activities done in the last 12 months, February 2007
THE CONSUMER – IDENTIFYING GAMBLING TYPES
Key points
 HOW SERIOUS?
Lottery-only dominates the market
Figure 31: Levels of gambling, February 2007
Scratchcards taken seriously, but not bingo
Figure 32: Gambling activities done in the last 12 months, by levels of gambling, February 2007
Who are the serious gamblers?
Figure 33: Gambling activities done in the last 12 months, by demographic sub-group, February 2007
 GAMBLING TARGET GROUPS
High Rollers (6% of adults aged 18+ or 2.9 million adults)
Who are they?
Occasional Tables (16% of adults aged 18+ or 7.6 million adults)
Who are they?
Vice Squad (33% of adults aged 18+ or 15.8 million adults)
Who are they?
Non-starters (45% of adults aged 18+ or 21.5 million adults)
Who are they?
Gambling target groups – detailed demographics
Figure 34: Gambling target groups, by demographic sub-group, February 2007
Gambling target groups – what do they gamble on?
Figure 35: Gambling activities done in the last 12 months, by gambling target groups, February 2007
Gambling target groups – what motivates them?
Figure 36: Gambling motivations, by gambling target groups, February 2007

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