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Gambling Review - UK - April 2014

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Forecast of consumer expenditure* on gambling**, 2008/09-2018/19
Lottery remains gambling’s big ticket item
Figure 2: Consumer expenditure on gambling, by segment, 2012/13
Market drivers
Retail gambling grows in visibility, not numbers
Politicians target bookmakers while bingo enjoys a windfall
Companies, brands and innovation
Retail technology focus aims to level the playing field with online
The consumer
Lottery players a single-interest group
Figure 3: Participation in gambling activities, February 2014
High street venues still most gamblers’ first port of call
Figure 4: Methods of gambling, February 2014
Cash-conscious consumers keep track of their spending
Figure 5: Gambling habits, February 2014
What we think
ISSUES AND INSIGHTS
Who is feeling the heat from online competition?
The facts
The implications
Can technology really transform the venue experience?
The facts
The implications
Does the industry face a return to regulation?
The facts
The implications
TREND APPLICATION
Trend: Experience is All
Trend: Access All Areas
Trend: Prepare for the Worst
MARKET DRIVERS
Key points
Gambling gets a firmer foothold in the high street
Figure 6: Licensed gambling premises, by activity, 2011-2013
Gambling market in second tier of economic recovery
Figure 7: GfK NOP consumer confidence Index, January 1988-2013
Machine controversies keep gambling in the regulatory spotlight
Figure 8: Gaming machine gross gambling yield (GGY) in licensed gambling premises*, 2012-13
Budget surprises bash bookies and boost bingo
Betting base is first to switch staking online
Figure 9: Mode of gambling participation in past four weeks, December 2013
Technology helping retail catch up with remote
Problem gambling a hotter topic than ever
Figure 10: Problem gambling rates among past-year gamblers, 2012
There is such a thing as bad publicity
Figure 11: Agreement with the statement “In this country, gambling is conducted fairly and can be trusted”, 2009-2013
E-cigarettes to lift cloud over gamblers’ smoking?
Figure 12: Prevalence of cigarette smoking among adults in England, by age and gender, 2010
WHO’S INNOVATING?
Key points
Hospitality offering of stake and chips
Numbers add up for Health Lottery Plus
Tablet prescription for cafe culture gambling
Follow red or like black?
MARKET SIZE AND FORECAST
Key points
Lottery and machines push value past £9 billion mark
Figure 13: Consumer expenditure* on gambling**, 2008/09-2018/19
Forecast
Figure 14: Forecast of consumer expenditure* on gambling**, 2008/09-2018/19
Forecast methodology
SEGMENT PERFORMANCE
Key points
Lottery holds the biggest ticket
Figure 15: UK gambling market, by sector, 2010/11-2012/13
New-look Lotto and scratchcard growth changing shape of sector
Figure 16: National Lottery sales, by sector, 2008/09-2012/13
Betting shop business slows in all segments
Figure 17: UK betting shops gross gambling yield, by segment, 2011/12-2013/14
Large casinos play a winning hand
Figure 18: Consumer expenditure on casino gaming, by segment, 2010/11-2012/13
Bingo leans on machines
Figure 19: Consumer expenditure on gambling in bingo clubs, by segment, 2010/11-2012/13
MARKET SHARE
Key points
Betting shop share shifts away from the independents
Figure 20: Leading betting shop operators, by number of venues*, March 2012-September 2013
Rank’s acquisitions shuffle casinos deck
Figure 21: Leading casino operators, by number of venues*, March 2012-September 2013
Fewer houses for bingo
Figure 22: Leading bingo club operators, by number of venues*, March 2012-September 2013
Arcades lead in machine volumes but value stays in betting shops
Figure 23: Average number of gaming machines in operation and GGY, by sector*, 2010/11-2012/13
National Lottery retains grip on sales
Figure 24: National Lottery and Health Lottery retail networks, 2014
COMPANIES AND PRODUCTS
Key points
Camelot Lotteries UK Limited
Figure 25: Camelot financial performance, 2007/08-2012/13
Figure 26: Camelot Group Plc advertising expenditure, by channel, 2010-13
Ladbrokes
Figure 27: Ladbrokes key financials, retail segment, 2012 and 2013
Figure 28: Ladbrokes Ltd advertising expenditure, by channel, 2010-13
William Hill
Figure 29: William Hill key financials, 2012 and 2013
Figure 30: William Hill Bookmakers advertising expenditure, by channel, 2010-13
Gala Coral
Figure 31: Gala Coral key financials, retail operations, 2012 and 2013
Figure 32: Gala Coral advertising expenditure, by channel, 2010-13
Genting UK
Figure 33: Genting UK financials, 2011-12
Figure 34: Genting UK advertising expenditure, by channel, 2010-13
Rank Group
Figure 35: Rank Group key financials, by division, 2012 and 2013
Figure 36: Rank Group advertising expenditure, casino and bingo brands, 2010-13
Sportech
Figure 37: Sportech Plc key financials, 2011 and 2012
Figure 38: Sportech Plc advertising expenditure, by channel, 2010-13
Praesepe
Figure 39: Key financials, Praesepe Plc, 2011 and 2012
BRAND COMMUNICATION AND PROMOTION
Key points
Retail gambling rides on remote sector’s promotional push
Figure 40: Gambling operators’ UK adspend, by sector, 2010-13
Television dominates the adspend picture
Figure 41: Gambling operators’ UK adspend, by media type, 2010-13
THE CONSUMER – GAMBLING ACTIVITIES
Key points
Lottery players reluctant to gamble elsewhere
Figure 42: Participation in gambling activities, January 2013 and February 2014
Non-gambling on the rise
Figure 43: Participation in no named gambling activity, by age, January 2013 and February 2014
Horseracing bettors chase longer odds
Figure 44: Participation in selected other gambling activities, by participation in horseracing and football betting, February 2014
Bigger jackpots to tempt non-lottery gamblers into draw play?
Figure 45: Participation in Lotto and EuroMillions draw games among lottery and non-lottery* gamblers, February 2014
THE CONSUMER – METHODS OF GAMBLING
Key points
Eight out of 10 gamblers choose retail
Figure 46: Methods of gambling, February 2014
Mobile devices to enhance the venue experience
Figure 47: Methods of remote gambling used by venue/shop gamblers, February 2014
Horseracing gamblers loyal to shops
Figure 48: Methods of gambling, by participation in betting on horseracing and football, February 2014
THE CONSUMER – GAMBLING HABITS
Key points
Gamblers setting limits – but by choice or necessity?
Figure 49: Gambling habits, February 2014
Can more venues muscle in on the occasional betting crowd?
Figure 50: Gambling habits, by method of participation, February 2014
Social centres the key to increasing preference for retail gambling
Figure 51: Agreement with the statement ‘going to a gambling venue is a good way to socialise with friends’, by gambling habits, February 2014
THE CONSUMER – DISINCENTIVES TO GAMBLING
Key points
Even lottery players are not interested in “gambling”
Figure 52: Disincentives to gambling, February 2014
Gamblers seek security in a world of chance
Figure 53: Fear of losing more than budgeted for at a gambling venue, by gambling habits, February 2014
Lack of knowledge keeps newcomers out of the in crowd
Figure 54: Agreement with the statement ‘I find the atmosphere of gambling venues unwelcoming’, by other disincentives to gambling, February 2014
APPENDIX – MARKET SIZE AND FORECAST
Figure 55: Forecast of consumer expenditure* on gambling**, 2013/14-2018/19
APPENDIX – THE CONSUMER – GAMBLING ACTIVITIES
Figure 56: Most popular gambling activities, by demographics, February 2014
Figure 57: Next most popular gambling activities, by demographics, February 2014
Figure 58: Participation in other gambling activities, by demographics, February 2014
Figure 59: Repertoire of gambling activities, February 2014
Figure 60: Participation in gambling activities, by participation in most popular gambling activities, February 2014
Figure 61: Participation in gambling activities, by participation in next most popular gambling activities, February 2014
Figure 62: Participation in gambling activities, by repertoire of gambling activities, February 2014
APPENDIX – THE CONSUMER – GAMBLING CHANNELS
Figure 63: Methods of gambling, by demographics, February 2014
Figure 64: Repertoire of methods of gambling, February 2014
Figure 65: Methods of gambling, by repertoire of methods of gambling, February 2014
Figure 66: Methods of gambling, by other methods of gambling, February 2014
Figure 67: Methods of gambling, by participation in most popular gambling activities, February 2014
Figure 68: Methods of gambling, by participation in next most popular gambling activities, February 2014
APPENDIX – THE CONSUMER – GAMBLING HABITS
Figure 69: Most common gambling habits, by demographics, February 2014
Figure 70: Next most common gambling habits, by demographics, February 2014
Figure 71: Other gambling habits, by demographics, February 2014
Figure 72: Gambling habits, by most common gambling habits, February 2014
Figure 73: Gambling habits, by next most popular gambling habits, February 2014
Figure 74: Gambling habits, by participation in most popular gambling activities, February 2014
Figure 75: Gambling habits, by participation in next most popular gambling activities, February 2014
Figure 76: Gambling habits, by methods of gambling, February 2014
APPENDIX – THE CONSUMER – DISINCENTIVES TO GAMBLING
Figure 77: Most common disincentives to gambling, by demographics, February 2014
Figure 78: Next most common disincentives to gambling, by demographics, February 2014
Figure 79: Disincentives to gambling, by other disincentives to gambling, February 2014
Figure 80: Disincentives to gambling, by participation in most popular gambling activities, February 2014
Figure 81: Disincentives to gambling, by participation in next most popular gambling activities, February 2014
Figure 82: Disincentives to gambling, by methods of gambling, February 2014
Figure 83: Disincentives to gambling, by most common gambling habits, February 2014
Figure 84: Disincentives to gambling, by next most common gambling habits, February 2014

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