2021
9
UK Lotteries Industry Report 2021
2021-06-23T04:08:40+01:00
OX1042299
2195
139584
[{"name":"Gambling","url":"https:\/\/store.mintel.com\/industries\/leisure-time\/gambling"}]
Report
en_GB
“The lotteries market entered the COVID crisis on the back of a year of record revenues and is set to emerge from it in robust shape as its retail segment…

UK Lotteries Industry Report 2021

£ 2,195 (Excl.Tax)

Report Summary

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

The lottery market across the UK has seen a rapid increase in growth, with many people changing their shopping habits due to the COVID-19 pandemic. While many other sectors have struggled to move online, the lotteries player base has been quick to embrace digitalisation, with the National Lottery signing up 1.3 million new customers and increasing its remote sales by 39%.

Thanks to online ticket sales, the lottery market has managed to weather the pandemic relatively unscathed. With spending reaching a record £4 billion, 60% of adults report gambling on lottery products over the last 12 months (to November 2020).

However, there is a noticeable age divide among customers, with over-35’s becoming more engaged with traditional draw participation, while the under 35’s prefer scratch cards and IGW play. The relatively new Set For Life game by the National Lottery achieved 35% penetration among draw players under 35. However, there may be a potential decline in younger players as the post-pandemic recession causes them to cut back on lottery spending.

Thanks to increased regulatory freedom to both society lotteries and National Lottery, there are more and more opportunities to develop new game and prize formats. But even with these opportunities, lottery companies may have to shift focus onto prize formats and odds in order to keep people’s interest as lockdowns continue to lift.

Quickly understand

  • The impact of COVID-19 on lottery participation and sales.
  • The implications of growth in digital play.
  • The role of technology in keeping the retail channel relevant.
  • The potential of new formats to attract younger players.
  • Opportunities for innovation presented by regulatory change.
  • The importance of good causes as a driver of play.

Covered in this report

Lotteries: National Lottery (Lotto, EuroMillions, Set For Life, Thunderball, Lotto HotPicks), The Health Lottery, People’s Postcode Lottery.

Expert analysis from a specialist in the field

Written by David Walmsley, a leading analyst in the Leisure sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The lotteries market entered the COVID crisis on the back of a year of record revenues and is set to emerge from it in robust shape as its retail segment has proved strongly resilient, digital participation has reached new heights and regulatory change creates new opportunities for innovation in game formats, technology and models of distribution.

David Walmsley
Senior Leisure Analyst

Table of Contents

  1. Overview

      • Key issues covered in this Report
        • COVID-19: Market context
          • Impact of the January 2021 lockdown and the vaccination rollout
            • Covered in this Report
            • Executive Summary

                • Impact of COVID-19 on lotteries
                  • Figure 1: Short, medium and long-term impact of COVID-19 on lotteries, 5 January 2021
                • The market
                  • Market size and forecast
                    • Figure 2: Forecast of consumer expenditure on lotteries, 2015/16-2025/26*
                  • New game drives draw sales growth
                    • Figure 3: National Lottery sales, by segment, 2015/16-2019/20*
                  • COVID crisis pushes more players into digital switch
                    • Figure 4: National Lottery sales, by channel, 2015/16-2019/20*
                  • Companies and brands
                    • National Lottery slows loss of share
                      • Figure 5: Lottery sales, by operator share, 2015/16-2019/20
                    • The consumer
                      • Interest splits along lines of age
                        • Figure 6: Lottery games played, November 2020
                      • Set For Life draws a younger crowd
                        • Figure 7: Lottery draw games played, November 2020
                      • Lottery’s new generation is default digital
                        • Figure 8: Methods of purchasing lottery draw tickets, November 2020
                      • Remote play challenges retail’s rationale
                        • Figure 9: Benefits of buying lottery draw tickets online, November 2020
                      • Society players more charity-minded
                        • Figure 10: Motives for playing lottery games, November 2020
                      • COVID crisis puts younger players at greatest risk
                        • Figure 11: Changes in lottery-playing habits during the COVID-19 outbreak, November 2020
                    • Issues and Insights

                      • COVID crisis pushes play towards digital – online and in-store
                        • High street still mighty
                          • The next normal: Accelerating emerging trends
                            • Digital and retail converge
                              • All lotteries can learn from success of Set For Life
                                • Value concept about more than cash
                                  • Experiences to the fore in the next normal
                                  • The Market – Key Takeaways

                                    • Lottery revenues hit record high
                                      • Spending sustainable through COVID and beyond
                                        • New draw drives ticket sales growth
                                          • Digital play wins lockdown lottery
                                            • New rules open market to innovation
                                            • Market Size and Forecast

                                              • Lotteries largely immune to pandemic
                                                • Figure 12: Short, medium and long-term impact of COVID-19 on lotteries, 5 January 2021
                                              • Spending reaches record heights
                                                • Figure 13: Lottery sales and consumer expenditure*, 2015/16-2019/20**
                                              • Lotteries well placed to weather COVID storm
                                                  • Figure 14: Forecast of consumer expenditure on lotteries, 2015/16-2025/26
                                                • Market drivers and assumptions
                                                  • Figure 15: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 5 January 2021)
                                                • Learnings from the last recession
                                                  • Figure 16: UK lottery sales, 2007/08-2011/12*
                                                • Forecast methodology
                                                • Market Segmentation

                                                  • Draw games stop slide against scratchcards
                                                      • Figure 17: National Lottery sales, by segment, 2015/16-2019/20
                                                    • Retail rebounds but lockdown accelerates digital growth
                                                        • Figure 18: National Lottery sales, by channel, 2015/16-2019/20*
                                                    • Market Drivers

                                                      • It could be who? National Lottery licence up for grabs
                                                          • Figure 19: National Lottery sales, 1994/95-2019/20
                                                        • Digital expansion heads for online slots territory
                                                            • Figure 20: Consumer expenditure* on gambling, by segment, 2019/20**
                                                          • Large societies win big prize rise
                                                              • Figure 21: National Lottery duty payments, 2015/16-2019/20
                                                            • Good causes move up the lottery agenda
                                                                • Figure 22: National Lottery returns to good causes, 2016/17-2019/20
                                                            • Companies and Brands – Key Takeaways

                                                              • Mixed outlook for societies sector
                                                                • COVID support highlights community value
                                                                  • Competitive tensions fuel rising adspend
                                                                  • Market Share

                                                                    • Mixed fortunes for society lottery challengers
                                                                        • Figure 23: Lottery sales, by operator share, 2015/16-2019/20
                                                                    • Launch Activity and Innovation

                                                                      • Community support stepped up during COVID
                                                                        • Charity bets blur lotto boundaries
                                                                          • National Lottery marks quarter century
                                                                            • Scratchcard stake cut to limit potential losses
                                                                            • Advertising and Marketing Activity

                                                                              • Arms race drives leaders’ spending
                                                                                  • Figure 24: UK lottery operators’ main monitored media advertising spend, 2017-19
                                                                                • Nielsen Ad Intel coverage
                                                                                • The Consumer – Key Takeaways

                                                                                  • Retail recovers as digital sales soar
                                                                                    • Interest splits along lines of age
                                                                                      • Set For Life draws a younger crowd
                                                                                        • Lottery’s new generation is default digital
                                                                                          • Remote play challenges retail’s rationale
                                                                                            • Society players more charity-minded
                                                                                              • COVID crisis puts younger players at greatest risk
                                                                                              • Impact of COVID-19 on Consumer Behaviour

                                                                                                • Lottery sales survive shopping switch
                                                                                                    • Figure 25: Changes in shopping habits during the COVID-19/coronavirus pandemic, April-November 2020
                                                                                                  • Community solidarity fades as pandemic drags on
                                                                                                      • Figure 26: Change in prioritisation of local community since the outbreak of COVID-19, April and October 2020
                                                                                                  • Lottery Players

                                                                                                    • Mass migration opens online opportunities for instant wins
                                                                                                        • Figure 27: Lottery games played, November 2020
                                                                                                      • Repertoire expansion a key driver of value growth
                                                                                                        • Figure 28: Lottery game repertoires, November 2020
                                                                                                    • Draw Game Play

                                                                                                      • Societies target different draws and demographics
                                                                                                          • Figure 29: Lottery draw games played, November 2020
                                                                                                        • Set For Life draw solving National Lottery’s age problem
                                                                                                            • Figure 30: Participation in lottery draws among 18-34 year olds, November 2020
                                                                                                        • Methods of Play

                                                                                                          • Younger players lead online growth
                                                                                                              • Figure 31: Methods of purchasing National Lottery draw tickets, November 2020
                                                                                                            • Retail restrictions damage smaller society sales
                                                                                                              • Figure 32: Methods of purchasing other lottery draw tickets, November 2020
                                                                                                          • Attitudes towards Online Play

                                                                                                            • Quick and easy digital draws put shops in the shade
                                                                                                                • Figure 33: Benefits of buying lottery draw tickets online, November 2020
                                                                                                            • Motives for Play

                                                                                                              • Appeal of cash proves biggest not always best
                                                                                                                • Figure 34: Motives for playing lottery games, November 2020
                                                                                                              • Good causes an opportunity to give back to society lotteries
                                                                                                                  • Figure 35: Participation in lottery games to support good causes, by lottery draws played, November 2020
                                                                                                                • Instant-win seekers more calculating online
                                                                                                                    • Figure 36: Motives for playing lottery games, by past-year scratchcard and IWG play, November 2020
                                                                                                                • Impact of COVID-19 on Playing Habits

                                                                                                                  • Younger players most at risk
                                                                                                                      • Figure 37: Changes in lottery-playing habits during the COVID-19 outbreak, November 2020
                                                                                                                    • Crisis brings lottery community together
                                                                                                                        • Figure 38: Attitudes towards lotteries during the COVID-19 outbreak, November 2020
                                                                                                                    • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                        • Abbreviations
                                                                                                                          • Consumer research methodology

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