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Betting Shops - UK - April 2015

Published By :

Mintel

Published Date : Apr 2015

Category :

Lifestyle

No. of Pages : 90 Pages

Betting shops need to address some significant gaps in their customers’ sporting knowledge as a pre-requisite for the revival of horseracing.
Table of Content

Introduction

Definition
Abbreviations

Executive Summary

The market
Figure 1: Forecast of consumer expenditure (GGY) in betting shops, 2009/10-2019/20
Odds lengthen on value growth
Football fails to halt march of the machines
Figure 2: UK betting shops gross gambling yield (GGY), by segment, 2013/14
Market drivers
Tax and regulation to force machines down a different street?
Technology takes off as betting shops get digital
Companies, brands and innovation
Market leaders focused on football and customer experience
Figure 3: Share of betting shop premises, by operator, September 2014
The consumer
World Cup fails to raise betting shop visiting rates
Figure 4: Betting shop visiting habits, March 2015
Changing the bet-and-go culture
Figure 5: Betting shop activities done in the past 12 months, March 2015
Knowledge and awareness gaps handicap horseracing
Figure 6: Attitudes towards horseracing and betting, March 2015
Machines’ public image problem reaches punters too
Figure 7: Attitudes towards gaming machines in betting shops, March 2015
Mobile devices to personalise the betting shop experience
Figure 8: Experience of multichannel betting, March 2015
What we think

Issues and Insights

Has betting on horses run its race?
The facts
The implications
Is the World Cup still a winner for betting shops?
The facts
The implications
What’s the next step in the march of the machines?
The facts
The implications

Trend Application

Trend: Access All Areas
Trend: Extend My Brand
Trend: Fauxthenticity

Market Drivers

Key points
Tax more effective than planning in curbing clustering
Figure 9: UK betting shop numbers, March 2009-September 2014
Have we reached ‘peak machine’?
Figure 10: Changes in average numbers of category B2 gaming machines versus total gross gambling yield, 2009/10-2013/14
Core customers stay loyal in face of online competition
Figure 11: UK consumers’ expenditure* on sports betting**, by segment, 2011/12-2013/14
Shop technology starts getting mobile
Figure 12: Personal ownership of laptops/netbooks, tablets and smartphones, December 2013-November 2014
Weather a potential handicap for racing
Figure 13: Horseracing fixture abandonments, 2011-14
Problem gamblers: Small numbers, big issues
Figure 14: Use of betting shops by GamCare clients, 2010/11-2013/14
Figure 15: Senet Group responsible gambling messaging, January 2015
Key demographics set to shrink
Figure 16: Projected trends in the age structure of the UK male population, 2014-19
Major event spotlight switches from sport in a year off for football
Figure 17: Amounts wagered on UK General Elections (all channels), 2005-15 (forecast)

Who's Innovating?

Key points
Bringing the stadium to the shop
Betting shops turn convenience stores
A lunch date at Ladbrokes
A pint and a punt
Bettors learn to earn

Market Size and Forecast

Key points
Growth levels off ahead of an uncertain future
Figure 18: Forecast of consumer expenditure (GGY) in betting shops, 2009/10-2019/20
Forecast
Figure 19: Forecast of consumer expenditure (GGY) in betting shops, 2009/10-2019/20
Forecast methodology

Segment Performance

Key points
World Cup fails to slow market’s movement towards machines
Figure 20: UK betting shops gross gambling yield (GGY), by segment, 2012/13-2014/15
Football swaps spikes for sustainability in 2014
Figure 21: UK betting shops’ over-the-counter GGY, by segment, 2013/14
Tax and regulation present two new challenges for machine growth
Figure 22: Gaming machine GGY in UK betting shops, 2009/10-2013/14
Segment forecasts
Figure 23: Forecast of OTC consumer expenditure (GGY) in betting shops, 2009/10-2019/20
Figure 24: Forecast of consumer expenditure on gaming machines (GGY) in betting shops, 2009/10-2019/20

Market Share

Key points
Duty rise sparks new round of shop closures
Figure 25: UK betting shops, by operator, 2012-14
Figure 26: Share of betting shop premises, by operator, September 2014

Companies and Products

Key points
William Hill Plc
Background
Recent activity
Financials
Figure 27: William Hill retail key financials, 2013-14
Promotional activity
Figure 28: William Hill adspend*, by media type, 2012-14
Strategy
Ladbrokes Plc
Background
Recent activity
Financials
Figure 29: Ladbrokes UK retail key financials, 2013-14
Promotional activity
Figure 30: Ladbrokes adspend*, by media type, 2012-14
Strategy
Gala Coral Group Ltd
Background
Recent activity
Financials
Figure 31: Coral retail key financials, 2013-14
Promotional activity
Figure 32: Gala Coral group adspend*, by media type, 2012-14
Strategy
Betfred Group Ltd
Background
Financials
Figure 33: Betfred Group Ltd key financials, 2012-13
Promotional activity
Figure 34: Done Bookmakers (Betfred) adspend*, 2012-14
Strategy
Paddy Power Plc
Background
Recent activity
Financials
Figure 35: Paddy Power UK Retail key financials, 2013 and 2014
Promotional activity
Figure 36: Paddy Power adspend, by media type, 2012-14
Strategy
Brand Communication and Promotion

Key points
Adspend focus puts brands ahead of channels
Figure 37: UK betting shop operators advertising expenditure*, 2012-14

The Consumer – Betting Shop Visiting

Key points
World Cup optimism wide of the target
Figure 38: Betting shop visiting habits, 2011-15
A working man’s pastime
Figure 39: Past-year betting shop visiting, by employment status, March 2015
Shop visiting a non-starter for the young
Figure 40: Agreement with the statement ‘I have never visited a betting shop and probably never will’, by age, March 2015

The Consumer – Betting Shop Activities

Key points
Few incentives to stay in-store
Figure 41: Betting shop activities done in the past 12 months, March 2015
Football just the job for younger bettors
Figure 42: Past-year participation in horserace and football betting, by age and employment status, March 2015
Shop bettors are singles, not accumulators
Figure 43: Repertoire of betting shop activities done in the past 12 months, March 2015

The Consumer – Attitudes Towards Horseracing and Betting

Key points
Racing of only occasional interest at best
Figure 44: Attitudes towards horseracing and betting, March 2015
Horseracing lacks the familiarity of football
Figure 45: Experience of knowledge barriers to betting on horseracing, by age, March 2015
Lapsed visitors take their racing knowledge with them
Figure 46: Experience of knowledge barriers to horserace betting (net) vs interest in betting on major racing occasions only, by experience of betting shop visiting, March 2015
Key demographics turned off by racing
Figure 47: Agreement with the statement ‘I find horseracing boring’, by gender, March 2014

The Consumer – Attitudes Towards Gaming Machines in Betting Shops

Key points
Machines’ bad publicity seeps into shops
Figure 48: Attitudes towards gaming machines in betting shops, March 2015
Electronic gaming for a digital generation
Figure 49: Agreement with positive statements about gaming machines in betting shops, by age, March 2015

The Consumer – Multichannel Betting

Key points
Smartphones to create a more personal shop experience
Figure 50: Experience of multichannel betting, March 2015
A media takeaway to reward appointment betting
Being more than a cashpoint in a multichannel world

Appendix – Market Size and Forecast

Figure 51: Forecast of consumer expenditure (GGY) in betting shops, 2014/15-2019/20

Appendix – Segment Performance

Figure 52: Forecast of OTC consumer expenditure (GGY) in betting shops, 2014/15-2019/20
Figure 53: Forecast of consumer expenditure (GGY) on gaming machines in betting shops, 2014/15-2019/20

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