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Betting Shops - UK - April 2016

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Short odds on low returns
Figure 1: Forecast of consumer expenditure* in betting shops, 2010/11-2020/21
Machines move in to bolster the betting segment
Figure 2: Consumer expenditure* in betting shops, by segment, 2014/15
Companies and brands
Squeeze on independents tightens big four’s grip
Figure 3: UK betting shops, by operator, September 2015
Ladbrokes-Coral merger a growth opportunity for others
The consumer
No open goals at EURO 2016
Figure 4: Betting shop visiting habits, February 2016
Bad press starting to squeeze machine play?
Figure 5: Betting shop activities, March 2015-February 2016
New terminals a starting point for journeys online
Figure 6: Betting shop visitors’ online gambling habits, February 2016
Instinctive football bettors ready for the in-play
Figure 7: Football betting habits, February 2016
Next generation to spark demand for digital
Figure 8: Technologies influencing choice of betting shop, February 2016
What we think
ISSUES AND INSIGHTS
Can self-service succeed alone?
The facts
The implications
Should shops appeal to punters’ heads or hearts?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Market grows – but only by a nose
Operators lower the stakes to reboot machine play
New shop technologies favour football
Pressure on profits squeezes shop numbers
MARKET SIZE AND FORECAST
Machines keep market edging forwards
Figure 9: Forecast of consumer expenditure* in betting shops, 2010/11-2020/21
Forecast
Figure 10: Forecast of consumer expenditure* in betting shops, 2010/11-2020/21
Forecast methodology
MARKET SEGMENTATION
March of the machines continues
Figure 11: UK betting shops gross gambling yield (GGY), by segment, 2013/14-2015/16 (est)
Can football fans make the jump to racing?
Figure 12: Betting shops’ over-the-counter GGY, by segment, 2014/15
Operators lower the stakes to insulate machines segment
Figure 13: Proportion of Ladbrokes betting shop gaming machine revenues derived from lower-stake slots (B3) content, 2014-15
MARKET DRIVERS
Shop numbers slip into decline
Figure 14: UK betting shop numbers, March 2011-September 2015
Maturing machines market proves resilient
Figure 15: Changes in average numbers of category B2 gaming machines versus total gross gambling yield, 2010/11-2014/15
Multichannel brands seek online players in-store
Figure 16: Experience of single and multichannel gambling among past-year betting shop visitors, by age, February 2016
Technology focuses on catching up with online
Figure 17: SSBT staking patterns, Ladbrokes, Q4 2015
Machines keep problem gambling focus on betting shops
Figure 18: Locations used to gamble by GamCare clients, 2014/15
Major event effect begins to weaken in football
Figure 19: OTC football betting patterns, 2010/11-2014/15
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Ladbrokes-Coral merger to shake up shop scene
Operators out to smooth cross-channel journeys
William Hill keeps technology in-house
Adspend slips back
MARKET SHARE
Big four tighten their grip
Figure 20: UK betting shops, by operator, September 2015
Ladbrokes and Coral move towards merger
LAUNCH ACTIVITY AND INNOVATION
Cash-out comes to the counter
Mobile app keeps punters in touch with the shop
William Hill goes it alone with SSBTs
Independents sign up for virtual sports
Data monitoring raises the player protection stakes
ADVERTISING AND MARKETING ACTIVITY
Online cutbacks reach retail advertising
Figure 21: Leading betting shop operators’ total above-the line, online display and direct mail advertising expenditure*, 2013-15
Power of the press still strong for shops
Figure 22: Leading betting shop operators’ total above-the line, online display and direct mail advertising expenditure*, by media type 2013-15
Funding fall-out threatens sponsorship
Nielsen Media Research coverage
COMPANY PROFILES
William Hill
Figure 23: William Hill retail key financials, 2014-15
Ladbrokes
Figure 24: Ladbrokes retail key financials, 2014-15
Gala Coral
Figure 25: Coral retail key financials, 2014-15
Betfred
Figure 26: Betfred Group Ltd key financials, 2013-14
Paddy Power
Figure 27: Paddy Power retail key financials, 2014-15
THE CONSUMER – WHAT YOU NEED TO KNOW
New crowd needed for football tournament betting
Bad press starting to squeeze machine play?
Betting terminals to help shop players get online
In-play primed for rapid growth
Intuition trumps information in football market
New technologies to evolve with the player base
BETTING SHOP VISITING
Can EURO 2016 bring back the crowds?
Figure 28: Betting shop visiting habits, February 2016
Mobile to help sell shops online
Figure 29: Betting shop visiting habits, by age and gender, February 2016
BETTING SHOP ACTIVITIES
Machine play growth on hold
Figure 30: Betting shop activities, March 2015-February 2016
Football betting heads for extra time
Figure 31: Betting shop activities, by past-year participation in horserace and football betting, February 2016
Online gamblers favour familiarity in-store
Figure 32: Betting shop activities, by past-year participation in online gambling, February 2016
ONLINE GAMBLING
Shop gamblers stick with sport online
Figure 33: Betting shop visitors’ online gambling habits, February 2016
FOOTBALL BETTING
Speculators favour accumulators
Figure 34: Football betting habits, February 2016
Instant offers play to football’s intuitive streak
Figure 35: Attitudes towards football betting, February 2016
BETTING SHOP TECHNOLOGIES
Next generation switched on to a digital future
Figure 36: Technologies influencing choice of betting shop, February 2016
Technology’s football focus raises risks for racing
Figure 37: Technologies influencing choice of betting shop, by betting shop activity, February 2016
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Figure 38: Forecast of consumer expenditure (GGY) in betting shops, 2015/16-2020/21
Forecast methodology
APPENDIX – MARKET SEGMENTATION
Figure 39: Forecast of OTC consumer expenditure (GGY) in betting shops, 2015/16-2020/21
Figure 40: Forecast of consumer expenditure (GGY) on gaming machines in betting shops, 2015/16-2020/21

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