2021
9
UK Gambling Review Market Report 2021
2021-06-24T04:10:57+01:00
OX1046025
2195
139692
[{"name":"Gambling","url":"https:\/\/store.mintel.com\/industries\/leisure-time\/gambling"}]
Report
en_GB
“The COVID-19 pandemic has hammered high street gambling businesses but overall losses have been limited by consumers’ search for stay-home entertainment keeping the online segment in growth. However, trading performance…

UK Gambling Review Market Report 2021

£ 2,195 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the UK Gambling market, including the behaviours, preferences and habits of the consumer.

The lockdowns from the COVID-19 pandemic saw the widespread closures of high street gambling venues, slashing revenue by 70%. However, alongside the resilience of lotteries, the popularity of online gaming limited the overall decline to just 18%. In fact, the popularity of online gaming saw remote spending rise by 9% in 2020 and 2021.

Despite the closure of high street venues, stay at home orders and more free time to spend at home saw 31% of remote gamblers staking online for the first time during the pandemic. The lottery is the most common playing choice for new players, although bingo and casino verticals saw the greatest influx proportionally.

The reopening of highstreet venues inbetween lockdowns in 2020 indicates that the market will bounce back relatively quickly, at least initially. As out-of-home opportunities reopen, growth in remote spending will settle to lower levels.

The biggest threat to the industry right now is the UK government’s ongoing review of gambling regulations. New restrictions to online play such as stake limits, affordability checks and a ban on direct marketing could limit the online part of the market. However, the biggest opportunity is the range of freedoms for highstreet venues, with cashless payments, linked gambling machines and the removal of inconsistencies between previous waves of legislations.

Read on to discover more details or take a look at all of our UK Leisure Time market research.

Quickly understand

  • The impact of COVID-19 on the gambling market.
  • The shape and speed of the post-pandemic recovery.
  • Potential ramifications of the government’s review of gambling regulation.
  • The long-term sustainability of high street gambling venues.

Covered in this report

Brands: National Lottery, Entain (Ladbrokes, Coral), Flutter, William Hill, bet365, Camlet, Betfred, Rank Group, Allwyn, Northern & Shell (Health Lottery).

Expert analysis from a specialist in the field

This report, written by David Walmsley, a leading analyst in the Leisure sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The COVID-19 pandemic has hammered high street gambling businesses but overall losses have been limited by consumers’ search for stay-home entertainment keeping the online segment in growth. However, trading performance between lockdowns and the loyalty of venue customers point to a rapid retail revival as the economy opens up.

David Walmsley - Research AnalystDavid Walmsley
Senior Leisure Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: Market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on gambling
      • Figure 1: Short, medium and long-term impact of COVID-19 on gambling, 1 June 2021
    • The market
    • Remote resilience limits overall losses
      • Figure 2: Forecast of consumer spending on gambling*, 2016/17-2026/27**
    • Stake cut trims slots’ market lead
      • Figure 3: Consumer expenditure* on gambling, by product, 2015/16-2019/20**
    • COVID hit accelerates venue closure rates
      • Figure 4: Licensed gambling venues, March 2016-March 2020
    • Companies and brands
    • More mergers reshape market again
      • Figure 5: UK revenues of leading gambling operators, 2020
    • The consumer
    • Gambling venues can serve demand for social leisure
      • Figure 6: Returning to normal life after COVID-19 restrictions, 13-21 May 2021
    • High street gamblers keep the faith
      • Figure 7: Participation in gambling activities, April 2021
    • Flood of new players keeps remote tide rising
      • Figure 8: Experience of online gambling during the COVID-19 pandemic, April 2021
    • Experienced gamblers will stick rather than twist
      • Figure 9: Future online gambling intentions, April 2021
    • Venue visitors ready to return
      • Figure 10: Willingness to return to retail gambling venues, April 2021
    • Clean venues key to getting customers back through the doors
      • Figure 11: Incentives to return to retail gambling venues after the COVID-19 pandemic, April 2021
  3. Issues and Insights

    • Sustained retail recovery or dead cat bounce?
    • Venue visitors ready to return
    • A younger look to the player base
    • More social experiences required in future
    • Slow betting an answer to gambling’s fast-growing problem
    • Gambling regulators reach for the brake
    • Golf can offer a more leisurely solution
  4. The Market – Key Takeaways

    • Slots’ stake limit cut trims market value pre-COVID
    • Remote resilience limits overall losses
    • Lottery closes revenue gap but slots still on top
    • Accelerated decline speeds retail towards a sustainable future
    • Major implications in regulatory regime change
  5. Market Size and Forecast

    • Remote resilience deflects damage of retail closures
      • Figure 12: Short, medium and long-term impact of COVID-19 on gambling, 1 June 2021
    • Betting shop slots’ slump tips market into decline
      • Figure 13: Consumer expenditure* on gambling, 2016/17-2019/20
    • Lockdown restrictions hammer retail revenues
      • Figure 14: Consumer expenditure on gambling, by channel*, 2015/16-2019/20**
    • Player enthusiasm points to rapid market recovery
      • Figure 15: Forecast of consumer expenditure on gambling*, 2016/17-2026/27**
      • Figure 16: Forecast of consumer expenditure on remote gambling*, 2016/17-2026/27**
      • Figure 17: Forecast of consumer expenditure on retail gambling*, 2016/17-2026/27**
    • Market drivers and assumptions
      • Figure 18: Key drivers affecting Mintel’s market forecast (prepared on 1 June 2021), 2015-25
    • Learnings from the last recession
      • Figure 19: Consumer expenditure on gambling, 2007/08-2012/13
    • Forecast methodology
  6. Market Segmentation

    • Machines’ dominance reduced by regime change
      • Figure 20: Consumer expenditure* on gambling, by product, 2015/16-2019/20**
    • Stake limit cut wipes £700 million off machines segment value
      • Figure 21: Consumer expenditure* on gaming machines/slots, by channel, 2015/16-2019/20**
    • Lotteries sustain spending through lockdown
      • Figure 22: Consumer expenditure* on lottery games, by segment, 2015/16-2019/20**
    • Betting bounces back as play resumes
      • Figure 23: Consumer expenditure* on betting, by channel, 2015/16-2019/20**
      • Figure 24: Consumer expenditure* on betting, by product, 2015/16-2019/20**
    • Casino closures cause collapse in retail revenues
      • Figure 25: Consumer expenditure* on casino and card games, by channel, 2015/16-2019/20**
    • Bingo clubs look for post-pandemic reset
      • Figure 26: Consumer expenditure* on bingo, by channel, 2015/16-2019/20**
  7. Market Drivers

    • COVID closures speed shrinking of retail estate
      • Figure 27: Licensed gambling venues, March 2016-March 2020
    • Pandemic pushes case for cashless play
      • Figure 28: Avoidance of using cash during the COVID-19 pandemic, April 2020-May 2021
    • Operators step up social responsibility measures
      • Figure 29: Proportion of gamblers with problematic playing habits, 2017-21*
  8. Regulatory and Legislative Changes

    • Review of the Gambling Act 2005
    • Triple focus for terms of reference
    • Tighter remote regulation on the cards
    • New operating freedoms could ramp up retail revival
  9. Companies and Brands – Key Takeaways

    • Retail brands pressured by pandemic
    • National Lottery tender race reaches final stages
    • Radio gains from commuting cuts
  10. Market Share

    • Reliance on retail leaves land-based brands vulnerable
      • Figure 30: UK revenues of leading gambling operators, 2020
    • More mergers reshape market again
  11. Launch Activity and Innovation

    • Competitive field in National Lottery licence race
    • Private betting club promotes the personal touch
    • Bookmakers feed grassroots of sport
    • Live tracking technologies can grow golf’s gambling appeal
    • Digital payment systems offer convenience, cost and safety benefits
  12. Advertising and Marketing Activity

    • Less to sell means less to promote
      • Figure 31: Main monitored media advertising spend of UK gambling operators, by segment, 2018-20
    • Radio gains from commuting cuts
      • Figure 32: Main monitored media advertising spend of UK gambling operators, by channel, 2018-20
    • Nielsen Ad Intel coverage
  13. The Consumer – Key Takeaways

    • Gambling venues can serve demand for social leisure
    • High street gamblers keep the faith
    • Flood of new players keeps remote tide rising
    • Experienced gamblers will stick rather than twist
    • Few defections from the retail crowd
    • Clean venues key to customers’ return
  14. Impact of COVID-19 on Consumer Behaviour

    • Confident consumers ready to roll the dice
      • Figure 33: Consumer financial sentiment, February 2020-May 2021
    • Comeback of socialising in need of a focus
      • Figure 34: Returning to normal life after COVID-19 restrictions, 13-21 May 2021
  15. Gambling Activities

    • Customer commitment points to rapid retail recovery
      • Figure 35: Participation in retail gambling activities, March 2020 and April 2021
    • Online offer complementing retail play rather than replacing it
      • Figure 36: Participation in remote gambling activities March 2020 and April 2021
  16. Impact of COVID-19 on Gambling Habits

    • Bingo players’ remote resistance breaks at last
      • Figure 37: Experience of online gambling during the COVID-19 pandemic, April 2021
    • Online veterans stick rather than twist
      • Figure 38: Changes in online gambling habits during the COVID-19 pandemic, April 2021
  17. Post-pandemic Play

    • New players have strong potential to drive online growth
      • Figure 39: Future online gambling intentions, April 2021
    • Lottery defections mask deeper loyalty of venue visitors
      • Figure 40: Willingness to return to retail gambling venues, April 2021
  18. Reviving Retail Gambling

    • Consumer caution favours extended hygiene regime
      • Figure 41: Incentives to return to retail gambling venues after the COVID-19 pandemic, April 2021
    • Core customers are most cost-conscious
      • Figure 42: Responsiveness to promotional offers on gambling products/services as an incentive to visit a high street gambling venue, by willingness to return to retail play, April 2021
  19. Appendix – Data Sources, Abbreviations and Supporting Information

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

      • Figure 43: Forecast of consumer expenditure on gambling*, 2021/22-2026/27**
      • Figure 44: Forecast of consumer expenditure on remote gambling*, 2021/22-2026/27**
      • Figure 45: Forecast of consumer expenditure on retail gambling*, 2021/22-2026/27

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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Data

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*databooks not available with UK B2B Industry reports.

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