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Gambling Review - UK - April 2014

“Remote competition and the threat of increased regulation vary in strength from segment to segment but all can use new technology to first level the playing field with online and then enhance and differentiate the live venue experience itself.”

– David Walmsley, Senior Leisure Analyst

Some questions answered in this report include:

  • Who is feeling the heat from online competition?
  • Can technology really transform the venue experience?
  • Does the industry face a return to regulation?

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Table of contents

  1. 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

                                                                                                      Companies Covered

                                                                                                      • Advertising Standards Authority
                                                                                                      • British Sky Broadcasting Group plc (BSkyB)
                                                                                                      • Camelot Group plc
                                                                                                      • Coral Eurobet plc
                                                                                                      • Gala Coral Group Ltd
                                                                                                      • Genting Stanley
                                                                                                      • Grosvenor Casinos
                                                                                                      • Ladbrokes Ltd
                                                                                                      • Mecca Bingo Limited
                                                                                                      • National Lottery Commission
                                                                                                      • Office of Fair Trading
                                                                                                      • Praesepe Plc
                                                                                                      • Rank Group
                                                                                                      • Sportech
                                                                                                      • Vernons
                                                                                                      • William Hill

                                                                                                      Gambling Review - UK - April 2014

                                                                                                      US $2,672.70 (Excl.Tax)