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Lotteries - UK - March 2014

Published By :

Mintel

Published Date : Mar 2014

Category :

Lifestyle

No. of Pages : 129 Pages

The biggest issue facing the lottery industry over the last 12 months has been the impact of the £2 Lotto ticket. Unfavourable economic conditions surrounding its launch mean a true picture will take time to emerge but initial indications are that while around half of players have reassessed their habits, only a small number have stopped spending altogether.
Table of Content

Introduction

Definition
Abbreviations

Executive Summary

The market
Figure 1: Forecast of consumer expenditure on lotteries, 2008/09-2018/19
Scratchcards and EuroMillions the twin engines of market growth
Figure 2: Segmentation of UK lottery sales, by segment, 2012/13
Market drivers
Lotto trades volume for value in doubling up on price
Retail networks remain key to access
Companies, brands and innovation
Challenger brands expand range and reach
The consumer
Fewer players at £2 prices
Figure 3: Participation in lottery games, January 2013 and January 2014
Lotto players split down the middle
Figure 4: Frequency of purchasing National Lottery Lotto draw tickets following their increase in price to £2, January 2014
Most eyes still on the prize
Figure 5: Incentives to lottery draw play, January 2014
What we think

Issues and Insights

What has been the impact of the £2 Lotto ticket on playing habits?
The facts
The implications
How can lotteries increase levels of online play and maintain scratchcard growth?
The facts
The implications

Trend Application

Trend: Play Ethic
Trend: Make It Mine
Trend: Brand Intervention

Market Drivers

Key points
Lotto doubles up on prices...
Figure 6: Stakes, prizes and odds of winning selected UK lottery draw games, January 2014
with value gains outweighing volume losses
Figure 7: Weekly sales of Saturday UK Lotto Draw (£m), August-December 2013
Retail readied to spotlight scratchcards
Figure 8: National and Health Lottery retail networks, 2014
Government still consulting on consultation
Figure 9: Lottery returns to good causes, 2012/13
Numbers betting begins to add up
Figure 10: Numbers betting turnover, 2008/09-2012/13
Lottery participation slow to go online – but no slower than most
Figure 11: Online participation in selected gambling activities, September 2012
Recovery still fragile for lotteries sector
Figure 12: GfK NOP consumer confidence Index, January 1988-2013
National Lottery a male winner – but women lead elsewhere
Figure 13: Past-year participation in lottery games, by gender and age, 2012
Squeezed middle a shrinking target
Figure 14: Participation in lottery games, by household income, January 2014

Whos Innovating?

Key points
Lottery apps to make playing more social?
Variety spices lottery life
Health Lottery Plus plays numbers game
Travel agents pitch payment holiday
Tickets roll over as well as prizes
Lottery marketing starts getting personal

Market Size and Forecast

Key points
Numbers come up for lottery sales
Figure 15: UK lottery sales, 2008/09-2018/19
Forecast
Figure 16: Forecast of consumer expenditure on lotteries, 2008/09-2018/19
Forecast methodology

Market Share and Segmentation

Key points
Society sector continues to grow
Figure 17: Operator shares of UK lottery sales, 2008/09-2012/13
Scratchcards carve out a bigger market niche
Figure 18: National Lottery sales, by sector, 2008/09-2012/13
New Lotto pricing to claw back value losses
Figure 19: Sales of draw-based National Lottery games, by game, 2008/09-2012/13

Companies and Products

Key points
Camelot commands the market’s heights
Camelot Lotteries UK Limited
Figure 20: Camelot financial performance, 2008/09-2012/13
Figure 21: Camelot advertising expenditure, by channel, 2009-13
Health Lottery ELM Limited
Figure 22: Health Lottery ELM Limited financial performance, 2011 and 2012
Figure 23: Health Lottery advertising expenditure, by channel, 2011-13
Postcode Lottery Limited
Figure 24: People’s Postcode Lottery financial performance, 2011 and 2012
Figure 25: Postcode Lottery advertising expenditure, by channel, 2009-13

Brand Communication and Promotion

Key points
Leading operators choose different channels
Figure 26: Trends in lotteries’ main media advertising expenditure, by channel, 2009-13
Personalisation the next destination?

The Consumer – Lottery Game Play

Key points
Decline in £2 play led by more than just price?
Figure 27: Participation in lottery games, January 2013 and January 2014
Hardest-pressed giving up on Lotto dream
Figure 28: Participation in National Lottery Lotto, by socio-economic group, January 2013 and January 2014
Younger players expect instant results
Figure 29: Participation in National Lottery scratchcard games, by age, January 2013 and January 2014
Lotto and EuroMillions make it a two-horse race
Figure 30: Lottery games played, January 2014

The Consumer – Lotto Ticket Buying

Key points
Half of players cut back on tickets
Figure 31: Purchasing of National Lottery Lotto draw tickets following their increase in price to £2, January 2014
Jackpots and habits keep Lotto players playing
Figure 32: Incentives to lottery draw play, by purchasing of National Lottery Lotto draw tickets following their increase in price to £2, January 2014

The Consumer – Frequency of Lotto Play

Key points
Cutting back: Won’t play or can’t pay?
Figure 33: Frequency of purchasing National Lottery Lotto draw tickets following their increase in price to £2, January 2014
Odds an issue at higher price points
Figure 34: Agreement with the statement ‘I would rather play a lottery draw that offers a better chance of winning a small prize than one with a slim chance of winning a big one’, by frequency of purchasing National Lottery Lotto draw tickets following their increase in price to £2, January 2014

The Consumer – Switching Lotto Spend

Key points
A quarter of Lotto players turn elsewhere
Figure 35: Switching of Lotto expenditure to other draws and forms of gambling, January 2014
Younger players quickest to switch
Figure 36: Switching of Lotto expenditure to other draws and forms of gambling, by age, January 2014
Switchers strongly sensitive to price
Figure 37: Incentives to playing lottery draw games, by switching of Lotto expenditure to other draws and forms of gambling, January 2014

The Consumer – Purchasing Lottery Tickets

Key points
Supermarket shoppers split from corner shop customers
Figure 38: Locations lottery tickets or scratchcards purchased from, January 2014
Online play a turn-off for the young
Figure 39: Purchasing lottery tickets or scratchcards online, by age, January 2014
IWGs only scratching the surface online
Figure 40: Purchasing lottery tickets or scratchcards online, by participation in National Lottery scratchcard games, January 2014
Retail outlets convenient enough for most
Figure 41: Repertoire of types of location lottery draw tickets and/or scratchcards/instant wins purchased from, January 2014

The Consumer – Incentives to Lottery Draw Play

Key points
Size of jackpot v thickness of wallet
Figure 42: Incentives to lottery draw play, January 2014
Promotion of mobile can help lotteries get lucky
Figure 43: Feeling lucky as an incentive to lottery draw play, by lottery games played, January 2014
Women act on impulse
Figure 44: Impulse playing of lottery draw games, by gender and socio-economic group, January 2014
Charity begins closest to home
Figure 45: Importance of charity support as an incentive to lottery draw play, by lottery games played, January 2014

The Consumer – Attitudes Towards Lottery Games

Key points
Players look beyond the jackpot and weigh up the odds
Figure 46: Attitudes towards lottery draw games, January 2014
Players prefer retail – but online by no means a closed shop
Figure 47: Preferred modes of purchasing lottery draw tickets, January 2014
Scratchcards an option to connect society lotteries with the young
Figure 48: Agreement with the statement \'Playing scratchcards is more exciting than buying lottery draw tickets’, by lottery games played, January 2014

Appendix – Market Drivers

Figure 49: Household/personal ownership of consumer technology products, June and September 2013

Appendix – Market Size and Forecast

Figure 50: Forecast of consumer expenditure on lotteries, 2013/14-2018/19

Appendix – The Consumer – Lottery Game Play

Figure 51: Participation in most popular lottery games, by demographics, January 2014
Figure 52: Participation in next most popular lottery games, by demographics, January 2014
Figure 53: Participation in lottery games, by participation in lottery games, January 2014
Figure 54: Repertoire of participation in lottery games, by demographics, January 2014
Figure 55: Participation in lottery games, by repertoire of participation in lottery games, January 2014

Appendix – The Consumer – Lotto Ticket Buying

Figure 56: Purchasing of National Lottery Lotto draw tickets following their increase in price to £2, by demographics, January 2014
Figure 57: Incentives to lottery draw play, by purchasing of National Lottery Lotto draw tickets following their increase in price to £2, January 2014
Figure 58: Attitudes towards lottery draw games, by purchasing of National Lottery Lotto draw tickets following their increase in price to £2, January 2014

Appendix – The Consumer – Frequency of Lotto Play

Figure 59: Frequency of purchasing National Lottery Lotto draw tickets following their increase in price to £2, by demographics, January 2014
Figure 60: Incentives to lottery draw play, by frequency of purchasing National Lottery Lotto draw tickets following their increase in price to £2, January 2014
Figure 61: Attitudes towards lottery draw games, by frequency of purchasing National Lottery Lotto draw tickets following their increase in price to £2, January 2014

Appendix – The Consumer – Switching Lotto Spend

Figure 62: Switching of lotto expenditure to other draws and forms of gambling, by demographics, January 2014
Figure 63: Incentives to lottery draw play, by switching of lotto expenditure to other draws and forms of gambling, January 2014
Figure 64: Attitudes towards lottery draw games, by switching of lotto expenditure to other draws and forms of gambling, January 2014

Appendix – The Consumer – Purchasing Lottery Tickets

Figure 65: Most popular locations lottery draw tickets purchased from, by demographics, January 2014
Figure 66: Next most popular locations lottery draw tickets purchased from, by demographics, January 2014
Figure 67: Locations lottery draw tickets purchased from, by locations lottery draw tickets purchased from, January 2014
Figure 68: Locations lottery draw tickets purchased from, by participation in lottery games, January 2014
Figure 69: Locations lottery draw tickets purchased from, by purchasing of National Lottery Lotto draw tickets following their increase in price to £2, January 2014
Figure 70: Locations lottery draw tickets purchased from, by frequency of purchasing National Lottery Lotto draw tickets following their increase in price to £2, January 2014
Figure 71: Locations lottery draw tickets purchased from, by switching of lotto expenditure to other draws and forms of gambling, January 2014
Figure 72: Repertoire of locations lottery draw tickets purchased from, by demographics, January 2014
Figure 73: Locations lottery draw tickets purchased from, by repertoire of locations lottery draw tickets purchased from, January 2014

Appendix – The Consumer – Incentives to Lottery Draw Play

Figure 74: Most popular incentives to lottery draw play, by demographics, January 2014
Figure 75: Next most popular incentives to lottery draw play, by demographics, January 2014

Appendix – The Consumer – Attitudes Towards Lottery Games

Figure 76: Most popular attitudes towards lottery draw games, by demographics, January 2014
Figure 77: Next most popular attitudes towards lottery draw games, by demographics, January 2014

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