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Betting Shops - UK - February 2014

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Forecast of gross gambling yield in betting shops, 2008/09-2018/19*
FOBTs accounted for more than half of consumer expenditure in 2012/13
Figure 2: Off-course betting sector breakdown of gross gambling yield, by segment, 2012/13
Companies, brands and innovation
Independents fall victim to big brand domination
Figure 3: Share of premises, by operator, March 2013
The consumer
Visiting remains stable despite online surge
Figure 4: Betting shop visiting habits, December 2013
One in ten visitors play machines, which make up over half of shops’ profits
Figure 5: Activities that betting shop visitors have taken part in within a betting shop in the past 12 months, December 2013
Desire for modernisation suggests a need for more refurbishments
Figure 6: Visitors’ attitudes towards betting shops, December 2013
Opportunity for shops to highlight non-sports offering
Figure 7: Non-visitors’ attitudes towards betting shops, December 2013
What we think
ISSUES IN THE MARKET
If the government were to impose a further limit on FOBTs, would shops still attract as many visitors?
Can the modernisation of shops help bookmakers to attract more punters?
How can shops encourage more non-sports fans to visit premises?
Will betting shops still receive a boost during the 2014 FIFA World Cup?
TREND APPLICATION
Trend: Locavore
Trend: Many Mes
Mintel Futures: Generation Next
MARKET DRIVERS
Key points
OTC sector under threat as smartphone and tablet penetration continues to rise
Figure 8: Smartphone and tablet penetration, January 2012-September 2013
Exclusive offers give sports punters even more reason to choose online
Financial incentives
Bet in play
Figure 9: William Hill in-play betting statistics, 2008 and 2012
Cash in/out
Figure 10: Example of a Ladbrokes Self Service Betting Terminal (SSBT), rolled out in 2013
Extreme weather conditions hurt shop footfall
FOBTs become a widely debated issue in Parliament
Addiction raises its head as self-exclusions rise
Figure 11: Betting sector self-exclusions, 2008/09 – 2012/13
Figure 12: Locations used to gamble by GamCare clients, 2011/12-2012/13
Match fixing and corruption in sport increases
Figure 13: Closed Sports Betting Intelligence Unit (SBIU) cases, October 2011-Sep 2012 and October 2012-September 2013
WHO’S INNOVATING?
Key points
Next-generation displays help shops to move into a new era
FOBTs continue to develop by integrating online play
Fun event betting gives bookmakers a wider audience
Personality is the key as bookies look to gain identity
MARKET SIZE AND FORECAST
Key points
Growth set to slow as shops feel the heat
Figure 14: Gross gambling yield in betting shops, 2008/09-2018/19*
Favourable sporting results offset OTC wagering decline
Figure 15: Betting shops’ OTC turnover and OTC gross gambling yield, 2011/12 and 2012/13
Forecast
Figure 16: Forecast of gross gambling yield in betting shops, 2008/09-2018/19*
Forecast methodology
SEGMENT PERFORMANCE
Key points
Machines keep growing whilst OTC segment holds its own
Figure 17: UK betting shops gross gambling yield, by segment, 2011/12-2013/14*
Euro 2012 boosted football betting in shops
Figure 18: Off-course betting sector breakdown of gross-gambling yield, by segment, 2012/13
Online sportsbooks set to become more profitable than OTC
Figure 19: Betting shops’ over-the-counter gross-gambling yield vs online sportsbook gross-gambling yield 2009-13
Segment forecasts
Over-the-counter betting
Figure 20: Forecast of gross gambling yield on over-the-counter betting in betting shops, 2008/09-2018/19*
Gaming machines
Figure 21: Forecast of gross gambling yield on gaming machines in betting shops, 2008/09-2018/19*
MARKET SHARE
Key points
Independents fall victim to big brand domination
Figure 22: Number of premises, by operator, 2011-13
Figure 23: Share of premises, by operator, March 2013
COMPANIES AND PRODUCTS
Key points
William Hill PLC
Figure 24: Key financials, William Hill PLC, 2012-13
Ladbrokes PLC
Figure 25: Key financials, Ladbrokes PLC, H1 2012 and H1 2013
Gala Coral Group Ltd
Figure 26: Financial performance, Gala Coral Group Ltd, 2012-13
Betfred Group Ltd
Figure 27: Key financials, Betfred Group Ltd, 2012-13
Paddy Power PLC
Figure 28: Key financials, Paddy Power (UK Retail division), H1 2012 and H1 2013
BRAND COMMUNICATION AND PROMOTION
Key points
Big five continue to promote multi-channel offer
Figure 29: UK bookmakers’ advertising expenditure (excluding online only brands), by bookmaker, 2010-13
Figure 30: Share of UK bookmakers’ advertising expenditure (excluding online only brands), by bookmaker, December 2012-November 2013
TV expenditure doubles in three years as brands push bet in play
Figure 31: UK bookmakers’ advertising expenditure (excluding online only brands), by media type, 2010-13
THE CONSUMER – BETTING SHOP VISITING HABITS
Key points
Visiting remains stable despite online surge
Figure 32: Betting shop visiting habits, 2011-13
Casino games and numbers could help address gender imbalance
Figure 33: Betting shop visiting habits, by gender, December 2013
Regular shop visitors on lower incomes than online gamblers
Figure 34: Current betting shop visitors, by household income and age, December 2013
THE CONSUMER – BETTING SHOP ACTIVITIES
Key points
One in ten visitors play machines, which make up over half of shops profits
Figure 35: Activities that betting shop visitors have taken part in within a betting shop in the past 12 months, December 2013
Figure 36: Activities that betting shop visitors have taken part in within a betting shop in the past 12 months, December 2013 and off-course betting sector breakdown of gross-gambling yield, by segment, 2012/13
Machines help to bring younger consumers into shops
Figure 37: Betting shop activities, by age, December 2013
But shops are still heavily reliant on racing within OTC sector
Figure 38: Breakdown of industry revenue from greyhound racing, horseracing and football betting, by channel, April 2012-March 2013
THE CONSUMER – VISITORS’ ATTITUDES TOWARDS BETTING SHOPS
Key points
Desire for modernisation suggests a need for more refurbishments
Figure 39: Visitors’ attitudes towards betting shops, December 2013
Younger consumers most likely to favour online
Figure 40: Visitors’ attitudes towards betting shops, by age, December 2013
Social element key for frequent visitors
THE CONSUMER – NON-VISITORS’ ATTITUDES TOWARDS BETTING SHOPS
Key points
Opportunity for shops to highlight non-sports offering
Figure 41: Non-visitors’ attitudes towards betting shops, December 2013
Almost a fifth of ex-visitors are now more likely to bet online…
Figure 42: Non-visitors’ attitudes towards betting shops, by betting shop visiting habits, December 2013
… but OTC trade remains stable thanks to greater awareness of sports betting
APPENDIX – MARKET SIZE AND FORECAST
Figure 43: Forecast of gross gambling yield in betting shops, 2013/14-2018/19*
APPENDIX – SEGMENT PERFORMANCE
Figure 44: Forecast of gross gambling yield on over-the-counter betting in betting shops, 2013/14-2018/19*
Figure 45: Forecast of gross gambling yield on gaming machines in betting shops, 2013/14-2018/19*
APPENDIX – THE CONSUMER – BETTING SHOP VISITING HABITS
Figure 46: Betting shop visiting habits, December 2013
Figure 47: Betting shop visiting habits, by demographics, December 2013
APPENDIX – THE CONSUMER – BETTING SHOP ACTIVITIES
Figure 48: Betting shop activities, December 2013
Figure 49: Most popular betting shop activities, by demographics, December 2013
Figure 50: Next most popular betting shop activities, by demographics, December 2013
Figure 51: Betting shop activities, by betting shop activities, December 2013
Figure 52: Betting shop activities, by betting shop visiting habits, December 2013
APPENDIX – THE CONSUMER – VISITORS’ ATTITUDES TOWARDS BETTING SHOPS
Figure 53: Visitors’ attitudes towards betting shops, December 2013
Figure 54: Visitors’ attitudes towards betting shops, by demographics, December 2013
Figure 55: Next most popular visitors’ attitudes towards betting shops, by demographics, December 2013 (continued)
Figure 56: Visitors’ attitudes towards betting shops, by betting shop visiting habits, December 2013
Figure 57: Visitors’ attitudes towards betting shops, by betting shop activities, December 2013
APPENDIX – THE CONSUMER – NON-VISITORS’ ATTITUDES TOWARDS BETTING SHOPS
Figure 58: Non-visitors’ attitudes towards betting shops, December 2013
Figure 59: Non-visitors’ attitudes towards betting shops, by demographics, December 2013
Figure 60: Non-visitors’ attitudes towards betting shops, by demographics, December 2013 (continued)
Figure 61: Non-visitors’ attitudes towards betting shops, by non-visitors’ attitudes towards betting shops, December 2013
Figure 62: Non-visitors’ attitudes towards betting shops, by non-visitors’ attitudes towards betting shops, December 2013 (continued)
Figure 63: Non-visitors’ attitudes towards betting shops, by betting shop visiting habits, December 2013

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