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Gambling Review - UK - April 2013

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Forecast of consumer expenditure* on gambling**, 2007/08-2017/18***
Market drivers
Gambling not entirely recession-proof
Figure 2: Gambling spending trends in the past 12 months, September 2012
Price of Lotto increases for the first time
New lottery legislation and licensing opens up opportunities
Casinos and bingo clubs insulated from online competition
Figure 3: Amount wagered on remote gambling activities*, 2009/10-2011/12
Target market for mobile gambling widens
Figure 4: Smartphone and tablet penetration, 2011-13
Market segmentation
Figure 5: Share of consumer expenditure* on land-based gambling, by sector, 2011/12
Lotteries and B2 gaming machines cloud damage felt elsewhere
The consumer
National Lottery still the most popular activity
Figure 6: Participation in gambling activities, January 2013
Lottery players less likely to branch out
Figure 7: Repertoire of gambling activities, by participation in lottery and non-lottery activities, January 2013
Gamblers still heavily reliant on bricks and mortar
Figure 8: Gambling methods used, January 2013
Online gamblers more likely to take part in multiple activities
Figure 9: Repertoire of types of gambling activity (eg Lotto weekly draw, horseracing), by gambling method used, January 2013
Two fifths of non-lottery gamblers bet for enjoyment
Figure 10: Gambling behaviour, by non-lottery and lottery-only gamblers, January 2013
High interest in localised lotteries
Figure 11: Interest in a local lottery, by age, January 2013
What we think
ISSUES IN THE MARKET
Will the National Lottery’s near monopoly be threatened by new entrants?
Are stores still convenient, or has online made gambling more accessible?
Are betting shops over-reliant on gaming machines?
Do casinos and bingo halls need a facelift in order to attract more consumers?
TREND APPLICATION
Trend: Carnivore, Herbivore, Locavore
Trend: Help Me Help Myself
Mintel Futures: Human
MARKET DRIVERS
Key points
Gambling not entirely recession-proof
Figure 12: Gambling spending trends in the past 12 months, September 2012
Public confidence may be starting to improve
Unemployment remains high in 2013 but down on a year ago
Figure 13: UK unemployment rate, Q1 2008-Q1 2013
Price of Lotto increases for the first time
Figure 14: Estimated breakdown of prizes for new Lotto weekly draws, expected to launch in autumn 2013*
‘Good causes’ become more prominent with Olympic funding
Figure 15: Olympic champion Sir Chris Hoy presenting ‘Best Sport Project’ to a group of netballers, in Hyde, November 2012
Figure 16: Cyclists Laura Trott and Jody Cundy with a group of young athletes, October 2012
New lottery legislation and licensing opens up opportunities
More gambling venues and opportunities
Local councils bite back to prevent more clustering of betting shops
Lottery and bingo players stay clear of addiction
Figure 17: Prevalence of problem gamblers (% of those gambling on an activity in the past year), 2010
Casinos and bingo clubs insulated from online competition
Figure 18: Amount wagered on remote gambling activities*, 2009/10-2011/12
Casino admissions steady in 2011/12, but bingo numbers decline
Figure 19: Casino admissions, 2006/07-2011/12
Figure 20: Bingo club admissions, 2007-11
Online prompts ‘bet-in-play’ markets
More live sport and more subscribers may increase engagement
Target market for mobile gambling widens
Figure 21: Smartphone and tablet penetration, 2011-13
WHO’S INNOVATING?
Key points
Health Lottery entices consumers with ‘free play’
Betsofmates.com pits punters against professionals
Betfred launches in-shop TV channel
Fun event betting enjoys bumper year
MARKET SIZE AND FORECAST
Key points
Lottery and B2 gaming machines facilitate growth
Figure 22: Consumer expenditure* on gambling**, 2007/08-2017/18***
Forecast
Figure 23: Forecast of consumer expenditure* on gambling**, 2007/08-2017/18***
Forecast methodology
SEGMENT PERFORMANCE
Key points
Lotteries show no sign of slowing
Figure 24: UK gambling market, by sector, 2009/10-2011/12*
Lotto price rise may change the mix of ticket sales
Figure 25: Sales of draw-based National Lottery games, by game (year ending 31 March), 2006/07-2011/12
Betting shops see off online threat with machine growth
Figure 26: UK betting shops consumer expenditure*, by segment, 2010/11-2012/13**
Machine dilemma for casinos
Bingo clubs still feeling the weight of legislation
MARKET SHARE
Key points
Number of betting shops remains steady
Figure 27: Leading betting shop operators, by number of venues*, March 2011-September 2012
Rank Group set to become casino market leader
Figure 28: Leading land-based casino operators, by number of venues, March 2011 and March 2012
Bingo operators consolidate in testing times
Figure 29: Leading land-based bingo club operators, by number of licences held, September 2012
Number of gaming machines continues to increase
Figure 30: Gaming machines in operation, by gambling market sector, 2011-12
Lotteries
COMPANIES AND PRODUCTS
Key points
Betfred
Figure 31: Key financials, Done Brothers (Cash Betting) Limited*, 2011 and 2012
Camelot Group plc
Figure 32: Camelot’s financial performance, year ending 31 March 2006/07-2011/12
Gala Coral
Figure 33: Key financials, Gala Coral Group, 2011 and 2012
Genting UK
Figure 34: Key financials, Genting Casinos UK Limited, 2010 and 2011
Ladbrokes
Figure 35: Key financials, Ladbrokes UK retail turnover, 2011 and 2012
Rank Group
Figure 36: Key financials, the Rank Group, 2011 and 2012
Figure 37: Key financials, by division, the Rank Group, 2011 and 2012
Figure 38: Rank Group strategic overview
William Hill
Figure 39: Key financials, William Hill, 2011 and 2012
BRAND COMMUNICATION AND PROMOTION
Key points
Total advertising expenditure continues to soar
Figure 40: Gambling operators’ UK adspend, by sector, 2009-12
Over half of adspend attributed to TV
Figure 41: Gambling operators’ UK adspend, by media type, 2009-12
Figure 42: Gambling operators’ UK adspend, by media type, 2012
GAMBLING ACTIVITIES
Key points
Lottery retains wide-scale appeal
Figure 43: Participation in gambling activities, January 2013
Lottery players less likely to branch out
Figure 44: Repertoire of gambling activities, by participation in lottery and non-lottery activities, January 2013
Football punters cast a wide net
Figure 45: Participation in gambling activities, by football gamblers, January 2013
Lotto price increase may shift balance of play
Lottery a way to win early retirement
Figure 46: Participation in gambling activities, lottery and non-lottery, by age, January 2013
GAMBLING CHANNELS
Key points
Gamblers still heavily reliant on bricks and mortar
Figure 47: Gambling methods used, January 2013
A third of gamblers aged 25-34 turn to online
Figure 48: Proportion of gamblers who use the online method, by age, January 2013
Online gamblers more likely to take part in multiple activities
Figure 49: Repertoire of types of gambling activity (eg Lotto weekly draw, horseracing), by gambling method used, January 2013
GAMBLING BEHAVIOUR
Key points
Control and convenience are key motivations for online players
Figure 50: Gambling behaviour, January 2013
Two fifths of non-lottery gamblers bet for enjoyment
Figure 51: Gambling behaviour, by non-lottery and lottery-only gamblers, January 2013
Experience is all
INTEREST IN ALTERNATIVE GAMBLING
Key points
Opportunity for new localised lotteries
Figure 52: Interest in alternative gambling activities, January 2013
Existing lottery consumers the most interested
Figure 53: Interest in a local lottery, by age, January 2013
‘Lucky dip’ may not just be for lottery
APPENDIX – MARKET SIZE
Figure 54: Forecast of consumer expenditure* on gambling**, 2012/13-2017/18***
APPENDIX – GAMBLING ACTIVITIES
Figure 55: Participation in gambling activities, January 2013
Figure 56: Most popular gambling activities, by demographics, January 2013
Figure 57: Next most popular gambling activities, by demographics, January 2013
Figure 58: Other gambling activities, by demographics, January 2013
Figure 59: Least popular gambling activities, by demographics, January 2013
Figure 60: Participation in gambling activities, by gambling methods used, January 2013
Figure 61: Participation in gambling activities, by most popular statements about gambling behaviour, January 2013
Figure 62: Participation in gambling activities, by next most popular statements about gambling behaviour, January 2013
Figure 63: Repertoire of participation in gambling activities, by most popular gambling activities, January 2013
Figure 64: Repertoire of participation in gambling activities, by next most popular gambling activities, January 2013
APPENDIX – GAMBLING CHANNELS
Figure 65: Gambling methods used, January 2013
Figure 66: Gambling methods used, by demographics, January 2013
Figure 67: Gambling methods used, by most popular gambling activities, January 2013
Figure 68: Gambling methods used, by next most popular gambling activities, January 2013
Figure 69: Gambling methods used, by gambling methods used, January 2013
Figure 70: Gambling methods used, by most popular statements about gambling behaviour, January 2013
Figure 71: Gambling methods used, by next most popular statements about gambling behaviour, January 2013
APPENDIX – GAMBLING BEHAVIOUR
Figure 72: Gambling behaviour, January 2013
Figure 73: Most popular statements about gambling behaviour, by demographics, January 2013
Figure 74: Next most popular statements about gambling behaviour, by demographics, January 2013
Figure 75: Gambling behaviour, by most popular gambling activities, January 2013
Figure 76: Gambling behaviour, by next most popular gambling activities, January 2013
Figure 77: Gambling behaviour, by most popular statements about gambling behaviour, January 2013
Figure 78: Gambling behaviour, by next most popular statements about gambling behaviour, January 2013
Figure 79: Gambling behaviour, by gambling methods used, January 2013
Figure 80: Gambling behaviour, by interest in alternative gambling activities, January 2013
APPENDIX – INTEREST IN ALTERNATIVE GAMBLING
Figure 81: Interest in alternative gambling activities, January 2013
Figure 82: Most popular interest in alternative gambling activities, by demographics, January 2013
Figure 83: Next most popular interest in alternative gambling activities, by demographics, January 2013
Figure 84: Interest in alternative gambling activities, by most popular gambling activities, January 2013
Figure 85: Interest in alternative gambling activities, by next most popular gambling activities, January 2013
Figure 86: Interest in alternative gambling activities, by gambling methods used, January 2013
Figure 87: Interest in alternative gambling activities, by interest in alternative gambling activities, January 2013

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