Impact of the Gambling Act - UK - October 2008

Table of Contents

• Issues in the Market
• Main issues
• Definition
• Abbreviations
• Market in Brief
• No sudden flood of punters
• Protecting consumers: Meeting public demand
• Protecting consumers: Who foots the bill?
• Industry attitudes coloured by outside influences...
• ...which have made positives slow to be felt
• Commercials a bad advert for gambling
• Remote regulation an ante-post bet
• Machine entitlements a winner for bookmakers...
• ...but fail to pay out for AGCs and bingo
• No mood in government for further concessions
• Industry circles the wagons
• Internal Market Environment
• Key points
• The Gambling Act 2005: What' s new?
• Premises licensing
• Increased costs hit smaller operators
• Licensing fees reviewed in 2008
• Casinos
  • Figure 1: Local authorities permitted to license a new casino under the Gambling Act 2005
• Bingo
• Remote gambling
• Gaming machines
  • Figure 2: Maximum permitted numbers of gaming machines, by type of premises, May 2008
• Betting
• Advertising
• Post-Act legislation: What' s newer
• Movement on bingo machine numbers
• Review of low-level stakes and prizes
• Change in casino policy
• Consultation on split premises
• Taxation
• Casinos
• Bingo
• FOBTs
• Remote gaming
• No change on the horizon
• The smoking ban
• Gambling feels the strain more than most
  • Figure 3: Cigarette smoking, by participation in selected leisure activities, 2008
• Problem gambling
• Where do the problems lie?
  • Figure 4: Calls made to GamCare, by gambling activity, 2005 and 2006
• Research funding
• Broader Market Environment
• Key points
• Is gambling' s recession-proofing beginning to crack?
  • Figure 5: Trends in selected areas of discretionary expenditure, at current and constant prices, 1989-94
• Wise up to an older crowd
• Gambling Act reinforces socio-economic trends
  • Figure 6: Adult population trends, by socio-economic group, 2003-13
• Technological innovation to drive the market forward
• Competitive Context
• Key points
• The leisure market: Who can lose least?
  • Figure 7: Consumer expenditure on selected leisure goods and activities, 2002-07
• The gambling market: Winners and losers
• An increasingly competitive Act
• Machine entitlements determine payouts
• Strengths and Weaknesses in the Market
• Strengths
• Facilities
• Innovation
• Economic freedoms
• Consumer confidence
• Competition and choice
• Weaknesses
• Exposure to economic downturn
• Machine offerings
• Costs
• Lack of preparation
• Prejudice
• Sector Analysis
• Key points
• Gambling stakes by sector
  • Figure 8: UK gambling stakes, by sector, 2004-08
• Betting
  • Figure 9: Use of bookmakers, 2005-08
• Economic climate freezing out gains
• B2 machines churning out more profits
• Telephone betting: Fewer lines busy
• Commission licences increasing costs
• Football pools
• Pools feel ripple effects only
• Game goes on the attack
• Casinos
  • Figure 10: Casino gambling participation, 2007 and 2008
• Act enables new entertainment focus
• Machine numbers and licence fees the main negatives
• Cost cutting takes priority
• Gaming machines
  • Figure 11: Gaming machine participation, 2005-08
• Playing the post-Act blame game for longer-term decline
• Government immune to charms of AGCs
• Bingo
  • Figure 12: Bingo participation*, 2005-08
• Many factors contribute to decline...
• ...but machine numbers tip the balance
• Consumer jury still out on new post-Act games
• Crossing over to online play: Can it be a two-way street?
• National Lottery
• Increased competition threatens draw sales, but creates opportunities elsewhere
• Remote gambling
• A lucrative and ever-expanding market
• Remote market makes a little go a long way
• Act breeds confidence in mobile gaming
• Brand Communication and Promotion
• Key points
• Brands still careful with their money
  • Figure 13: Gambling industry advertising expenditure*, pre- and post-Gambling Act, 2006/07 and 2007/08
• Little lure of the small screen
• Not a value bet for bookmakers
• Casinos have other wheels to spin
• Remote players need to build brands
• Responsibility high on the ad agenda
• Case Studies
• Key points
• Betting: Ladbrokes
  • Figure 14: Ladbrokes plc, UK retail interim results, 2007 and 2008
• Bingo: Mecca Bingo
  • Figure 15: Rank Group plc, Mecca Bingo division interim results, 2007 and 2008
• Casinos: Grosvenor Casinos
  • Figure 16: Rank Group plc, Grosvenor Casinos division interim results and key performance indicators, 2007 and 2008
• Gaming machines: INGG
  • Figure 17: INGG plc, interim results (continuing operations), 2007 and 2008
• Consumers' Post-Act Gambling Habits
• Key points
• Gambling participation so far unaffected
  • Figure 18: Gamblers vs non-gamblers, 2007 and 2008
• Now a strongly segmented market
• Betting shops set pace for growth
  • Figure 19: Gambling activities done in the last 12 months, 2007 and 2008
• Cross-sector contest for customers not yet at post
• New bingo crowd ripe for growth online
• Consumer Perceptions of the New Gambling Landscape
• Key points
• TV promotion: A bad advert for gambling?
  • Figure 20: Attitudes towards gambling, August 2008
• Negative sentiments remain strong with the core demographic
• Is advertising working?
• Bigger prizes don' t mean fuller houses
• Super-casino a missed opportunity
  • Figure 21: Selected attitudes towards casinos, August 2008
• Not a Lotto crossover potential
  • Figure 22: Attitudes towards gambling, by type of gambler, August 2008
• Super-casino could have proved a super-cannibal
  • Figure 23: Selected attitudes towards casinos, by type of gambler, August 2008
• Scratchcard players like the look of bingo rollovers
  • Figure 24: Attitudes towards gambling, by gambling activities done in the last 12 months, August 2008
• Old dogs dislike new tricks
• Cloud of the smoking ban begins to clear
• Sports bettors split on casinos
  • Figure 25: Selected attitudes towards casinos, by gambling activities done in the last 12 months, August 2008
• Appendix -- Broader Market Environment
  • Figure 29: Trends in the age structure of the UK population, by gender, 2003-13
  • Figure 30: Adult population trends, by lifestage, 2003-13
• Appendix -- Consumers' Post-Act Gambling Habits
• Gamblers vs. non-gamblers -- detailed demographics
  • Figure 31: Gamblers vs non-gamblers, by demographic sub-group, August 2008
• Gambling activities -- detailed demographics
  • Figure 32: Gambling activities done in the last 12 months, by demographic sub-group, August 2008
• Appendix -- Consumer Perceptions of the New Gambling Landscape
• Attitudes towards gambling -- detailed demographics
  • Figure 33: Attitudes towards gambling, by demographic sub-group, August 2008
• Attitudes towards casinos -- detailed demographics
  • Figure 34: Selected attitudes towards casinos, by demographic sub-group, August 2008
• Combinations of attitudes
  • Figure 35: Attitudes towards gambling, by other attitudes towards gambling, August 2008
  • Figure 36: Attitudes towards gambling, by selected attitudes towards casinos, August 2008