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Gambling Review - UK - June 2016

“Slowing revenue growth in gaming machines and a number of restrictive influences on betting, casino and bingo potential are moving gambling operators towards a multichannel approach that promotes brand loyalty and extends playing habits across retail and online.”

– David Walmsley, Senior Leisure Analyst

This report looks at the following areas:

  • What does the multichannel future look like?
  • Who will gain from the culture of instant-win?

The market continues to experience a concentration of power around a relatively small number of major brands, which are using their advantages of scale and resources to invest in new venues and technologies, as well as experiment with different formats.

However, with a range of factors restricting growth potential across all sectors, operators are increasingly looking to add value through a multichannel approach that persuades remote gamblers to extend their activity to retail venues and land-based customers to broaden their playing habits online.

For the purposes of this Report, Mintel has defined the UK retail gambling market as being comprised of:

  • National Lottery draws, other lotteries (eg Health Lottery/People’s Postcode Lottery) and scratchcards
  • Bingo
  • Betting on sports events (eg horseracing, football etc) and non-sports events (eg politics, TV reality shows etc)
  • Casino games
  • Gaming machines and
  • Football pools.

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Table of contents

  1. Overview

    • What you need to know
      • Products covered in this report
      • Executive Summary

          • The market
            • Growth is back – but at a slower pace
              • Figure 1: Forecast of consumer expenditure* on retail** gambling, 2010/11-2020/21***
            • Market’s fortunes swing on lotteries and slots
              • Figure 2: Consumer expenditure on retail gambling, by segment, 2014-15
            • Companies and brands
              • Smaller players continue to be squeezed
                • Figure 3: Licensed gambling premises, March 2013-September 2015
              • One-off factors drive investment in advertising
                • Figure 4: Change in lottery and betting shop operators’ monitored above-the line, online display and direct mail advertising expenditure, 2013-15
              • The consumer
                • Participation slips as lotteries lose out
                  • Figure 5: Participation in gambling activities, March 2015-April 2016
                • Punters still backing just one horse
                  • Figure 6: Methods of participation in gambling activities, April 2016
                • Lone gamblers happy with their hobby
                  • Figure 7: Gambling habits, April 2016
                • Standards of service still the heart of retail appeal
                  • Figure 8: Satisfaction with aspects of most recent gambling experience - in a venue, April 2016
                  • Figure 9: Satisfaction with aspects of most recent gambling experience - online, April 2016
                • Nothing to share with social media
                  • Figure 10: Influence of social media on gambling activity, April 2016
                • What we think
                • Issues and Insights

                  • What does the multichannel future look like?
                    • The facts
                      • The implications
                        • Who will gain from the culture of instant-win?
                          • The facts
                            • The implications
                            • The Market – What You Need to Know

                              • Growth returns at a slower pace
                                • Lottery and gaming machines set the pace
                                  • Smaller players continue to feel the pinch
                                    • Multichannel operations need to be the same but different
                                      • Stakes and prizes review to put B2 machines back on trial
                                      • Market Size and Forecast

                                        • Spending grows – but at a slower pace
                                          • Figure 11: Consumer expenditure* on retail** gambling, 2010/11-2020/21
                                        • Forecast
                                            • Figure 12: Forecast of consumer expenditure* on retail** gambling, 2010/11-2020/21
                                          • Forecast Methodology
                                          • Market Segmentation

                                            • Lottery and machine play the winning pair for growth
                                              • Figure 13: UK retail gambling market, by segment, 2012/13-2014/15
                                            • Lottery sales stay up to scratch
                                                • Figure 14: Lottery game sales, by segment, 2010/11-2014/15
                                              • Bingo clubs and betting shops diversify gaming machine offer
                                                • Figure 15: Consumer expenditure* on gaming machines, by location, 2010/11-2014/15
                                              • Retail betting takes a leaf out of the online sportsbook
                                                • Figure 16: Consumer expenditure on betting*, 2010/11-2014/15
                                              • Casino gaming builds in growth
                                                • Figure 17: Consumer expenditure on casino games, 2010/11-2014/15
                                              • Bingo wins on tax change
                                                • Figure 18: Consumer expenditure on bingo, 2011-2015
                                              • Pools stuck with that sinking feeling
                                                • Figure 19: Consumer expenditure on football pools, 2010/11-2014/15
                                            • Market Drivers

                                              • Pressure on profits closes smaller players’ doors
                                                  • Figure 20: Licensed gambling premises, by activity, March 2013-September 2015
                                                • Recovery slow to reach the gambling high street
                                                  • Figure 21: Unemployment rate, December 2005-February 2016
                                                • Omnichannel v multichannel: Uniformity or differentiation?
                                                    • Figure 22: Consumer expenditure* on gambling, by channel, 2015
                                                  • Technology focus moves towards mobile
                                                      • Figure 23: Ownership of mobile phones, January 2012-December 2015
                                                    • Fewer people at risk – but problem gambling issue will not go away
                                                        • Figure 24: Incidence of problem and at-risk gambling, 2013-15
                                                    • Regulatory and Legislative Changes

                                                      • Machine stakes and prizes up for Triennial Review
                                                          • Figure 25: Gaming machine stake and prize limits, May 2016
                                                        • Umbrella lotteries under a cloud
                                                          • Point-of-consumption tax levels the playing field
                                                            • New currency to cash out old machines?
                                                            • Companies and Brands – What You Need to Know

                                                              • Big names tighten their grip
                                                                • Merger plans to change the shape of betting shops
                                                                  • Bingo brands reach out for new crowds
                                                                    • Leaders’ adspend moves in different directions
                                                                    • Market Share

                                                                      • Lottery challengers run neck and neck
                                                                        • Figure 26: UK lottery sales, by operator share, 2014/15
                                                                      • Ladbrokes-Coral merger to shake up betting shop shares
                                                                        • Figure 27: UK betting shops, by operator share, September 2015
                                                                      • Big two of bingo entrench dominant position
                                                                        • Figure 28: UK bingo clubs, by operator share, February 2016
                                                                      • Genting to gain from major new opening
                                                                        • Figure 29: UK casinos, by operator share, February 2016
                                                                      • Arcades segment still highly fragmented
                                                                        • Figure 30: UK Adult Gaming Centres, by operator share, September 2015
                                                                    • Launch Activity and Innovation

                                                                      • Fantasy sports become a retail reality
                                                                        • New bingo concepts aim for fuller houses
                                                                          • Progressive jackpots move from slots to table games
                                                                            • Mobile moves further into the retail gambling mix
                                                                              • Faster payments to streamline the venue experience
                                                                              • Advertising and Marketing Activity

                                                                                • Lotteries and betting shops swap adspend trends
                                                                                    • Figure 31: Retail gambling operators’ monitored above-the line, online display and direct mail advertising expenditure, 2013-15
                                                                                  • Nielsen Media Research coverage
                                                                                  • Company Profiles

                                                                                    • Camelot UK Lotteries
                                                                                        • Figure 32: Camelot UK Lotteries Limited key financials, 2010/11-2014/15
                                                                                      • William Hill
                                                                                        • Figure 33: William Hill retail key financials, 2014-15
                                                                                      • Gala Bingo
                                                                                        • Figure 34: Gala Bingo KPIs, 2014-15
                                                                                      • Rank Group
                                                                                        • Figure 35: Grosvenor Casinos KPIs, 2014-15
                                                                                      • Sportech
                                                                                          • Figure 36: Sportech Football Pools division KPIs, 2014-15
                                                                                        • Talarius
                                                                                            • Figure 37: Talarius key financials, 2014-15
                                                                                        • The Consumer – What You Need to Know

                                                                                          • Lottery losses cut participation rate
                                                                                            • Multichannel play a minority sport
                                                                                              • Hobby gamblers a new target group?
                                                                                                • Web standards the benchmark for retail ambition
                                                                                                  • Social media unliked and unloved
                                                                                                  • Gambling Activities

                                                                                                    • Lotto players vote with their feet
                                                                                                        • Figure 38: Participation in gambling activities, March 2015-April 2016
                                                                                                      • Punters stick to singles
                                                                                                        • Figure 39: Gambling activity repertoires, April 2016
                                                                                                      • Few easy wins in growing the player pool
                                                                                                          • Figure 40: Interest in future participation in gambling activities not currently taken part in, April 2016
                                                                                                      • Methods of Gambling

                                                                                                        • Omnichannel focus brings web players to the high street
                                                                                                            • Figure 41: Methods of participation in gambling activities, April 2016
                                                                                                          • Crossover needed to kick-start retail player base
                                                                                                              • Figure 42: In-person versus online participation in gambling, by activity, March 2015-April 2016
                                                                                                          • Gambling Habits

                                                                                                            • Bowling alone?
                                                                                                                • Figure 43: Gambling habits, April 2016
                                                                                                              • Women ready to act on impulse
                                                                                                                  • Figure 44: Agreement with the statement “I usually gamble on impulse (eg when I feel like it)”, by demographics, April 2016
                                                                                                              • Satisfaction with Gambling Experiences

                                                                                                                • Gambling venues offer a satisfying experience
                                                                                                                    • Figure 45: Satisfaction with aspects of most recent experience of gambling in a venue, April 2016
                                                                                                                  • Online functionality the benchmark for retail rivals
                                                                                                                      • Figure 46: Satisfaction with aspects of most recent experience of gambling online, April 2016
                                                                                                                  • Gambling and Social Media

                                                                                                                    • Social media marketing needs a more personal touch
                                                                                                                        • Figure 47: Influence of social media on gambling activity, April 2016
                                                                                                                      • Few followers in retail
                                                                                                                        • Figure 48: Influence of social media on gambling activity, by method of participation in gambling, April 2016
                                                                                                                    • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                        • Abbreviations
                                                                                                                          • Consumer research methodology
                                                                                                                          • Appendix – Market Size and Forecast

                                                                                                                              • Figure 49: Forecast of consumer expenditure on retail gambling, 2015/16-2020/21

                                                                                                                          Companies Covered

                                                                                                                          To learn more about the companies covered in this report please contact us.

                                                                                                                          Gambling Review - UK - June 2016

                                                                                                                          £1,995.00 (Excl.Tax)