Bingo - UK - April 2009

Table of Contents

• Issues in the Market
• Main issues
• Definition
• Abbreviations
• Market in Brief
• Admission and revenue fall
  • Figure 1: Bingo club turnover and admissions, 2004-09
• A new breed of bingo player, but...
• ...will online threaten this transformation?
  • Figure 2: Percentage change in the number of bingo participants in clubs and online, 2006-08
• Can only the big boys survive?
  • Figure 3: Estimated market shares in the bingo club market, year to end March 2009
• Some hope for the future?
• Internal Market Environment
• Key points
• Gambling Act 2005
• Help for smaller bingo operators
  • Figure 4: The categories for non-remote bingo licenses, 2009
• More freedom for operators but is the cost acceptable?
• The government offers a partial remedy
  • Figure 5: The types of gaming machines found in bingo clubs, 2009
• But what the government giveth, it can also take away
• Remote gambling
• The smoking ban
• Again the government backtracks slightly
• A major blow to the National
• Problem gambling
  • Figure 6: Prevalence of problem gamblers (% of those gambling on an activity in the past year), 2007
• Broader Market Environment
• Key points
• Looks like trouble ahead
  • Figure 7: Quarter-on-quarter growth of real GDP, Q1 2003-Q4 2008
• Unemployment the real worry
  • Figure 8: Level of unemployment in the UK, seasonally adjusted, 2006-08
• Bingo: Luxury or essential?
  • Figure 9: Trends in selected areas of discretionary expenditure, at current and constant prices, 1989-94
• Normal service not resumed until 2011
  • Figure 10: Forecast of annual growth of real GDP, Q1 2009-Q4 2011
• Age trends are not too encouraging...
  • Figure 11: Participation in bingo (admission charged), by frequency of play and age, 2008
• ... and socio-economic trends don' t look good either
  • Figure 12: Comparison of bingo penetration and population change, by socio-economic group, 2009
• Technological innovation to drive the market forward
• Competitive Context
• Key points
• The leisure market: Will bingo hold its own?
  • Figure 13: Consumer expenditure on selected leisure goods and activities, 2003-08
• Bingo can' t compete with the big boys
  • Figure 14: Gambling activities done in the last 12 months, 2007 and 2008
• Bingo players tend to spread their gambling pound around
  • Figure 15: Bingo players' participation in other forms of gambling, 2008
  • Figure 16: Participation in other forms of gambling, 2008
• Bingo is losing its position in the market
  • Figure 17: Breakdown of UK gambling stakes (%), by sector, 2004-08
• The bingo club is not the only venue
  • Figure 18: The main venue used, by bingo players to play bingo (% of bingo players), 2009
• Online bingo: New sector or competitor?
• A £600 million market
  • Figure 19: The total UK bingo market, by media, year ending March 2008
• Half a million online players
  • Figure 20: Online vs offline participant numbers, 2006-08
• Strengths and Weaknesses in the Market
• Strengths
• Facilities
• Remote bingo
• Social dimension
• The Gambling Act
• Weaknesses
• Economic downturn
• The smoking ban
• Taxation
• The Gambling Act
• More competition
• Market Size and Forecast
• Key points
• Club revenue slumps
  • Figure 21: Bingo club turnover* (£m) and admissions, year ending March, 2004-14
• A dramatic revenue slump
• Fall in admissions drives the market down
  • Figure 22: Bingo admissions, club numbers and KPIs (year ending March), 2004-09
  • Figure 23: Bingo admissions and spend per admission (year ending March), 2004-09
• Factors used in the forecast
• Segment Performance
• Key points
• Taxed stakes pulls club revenue down
  • Figure 24: Taxed stakes, year to March, 2004-09
• Financial year 2008/09 a very bad year
  • Figure 25: Trends in taxed stake (£m), January 2007-December 2008
• Interval bingo takes a big hit
  • Figure 26: Estimates split of taxed stake, by bingo game, year ending March, 2007-09
• Machines and catering fail to plug to gap
  • Figure 27: Club turnover from gaming machines and food and drink, year to March, 2004-09
• Gaming machine installed base
  • Figure 28: The installed base of gaming machines in bingo clubs, 2004-08
• Market Share
• Key points
• The big two maintain their dominance
  • Figure 29: Estimated market shares in the bingo market, year end March 2009
• Online market has its own dynamics
  • Figure 30: The UK' s largest online bingo sites, mid-2008
• Companies and Products
• Key points
• Gala and Mecca way ahead of the field
  • Figure 31: The largest bingo club operators, by outlet numbers, 2007-08
  • Figure 32: The leading bingo club operators, by turnover, latest data* availbale, February 2009
• Gala Bingo
  • Figure 33: Key financials for Gala Bingo, financial year to September 2007 and 2008
• Mecca Bingo
  • Figure 34: Rank Group plc, Mecca Bingo division financial results, 2006-08
  • Figure 35: Rank Group plc, Mecca Bingo KPIs, 2006-08
• Top Ten Bingo Holdings plc
  • Figure 36: Top Ten Holdings, financial results, 2007-08
• Carlton Clubs plc: Closes two clubs
  • Figure 37: Carlton Clubs plc, financial results, 2005-07
• Riva Bingo
• Buckingham Bingo Ltd: Big losses cause concern
  • Figure 38: Buckingham Bingo Ltd, financial results, 2006-08
• Bourne Leisure
• Brand Communication and Promotion
• Key points
• Advertising spend follows the market down
  • Figure 39: Main media advertising on bingo, year to December, 2004-08
• TV and internet led the charge
  • Figure 40: Main media advertising on bingo, by media, 2004-08
• Local PR is important
• The importance of promotions
• Fun is the word
• The big online brands dominate
  • Figure 41: Main media advertising on bingo, by advertiser, 2004-08
• Who Plays Bingo?
• Key points
• Bingo participation down
  • Figure 42: Participation in bingo (admission charged) in the last 12 months, 2002-08
• Participation decline led by older players
  • Figure 43: Profile of bingo players (% of players), by age, 1996-2008
• Online bingo a serious threat
  • Figure 44: Number of bingo players, by age, 2002-08
• The rise of the prawn sandwich brigade
  • Figure 45: Profile of bingo players, by socio-economic group, 1996-2008
• Again the internet is undercutting the club
  • Figure 46: Number of bingo players, by socio-economic group, 2002-08
• For all the changes, bingo remains a female, working class activity
  • Figure 47: Penetration of regular bingo players (%), by gender, socio-economic group and ACORN group, 2008
• Social clubs ensure high participation up North
  • Figure 48: Penetration of regular bingo players (%), by TV region, 2008
• Bingo Players and the Smoking Ban
• Key points
• Over 40% of bingo players smoke
  • Figure 57: Cigarette smoking, by regular bingo players, 2002-08
  • Figure 58: Cigarette smoking, by occasional bingo players, 2002-08
• Has the smoking ban been good for bingo players?
  • Figure 59: Cigarette smoking of regular bingo players, by intensity, 2002-08
• How bad was the smoking ban?
  • Figure 60: Attitudes towards gambling, by gambling activities done in the last 12 months, August 2008
  • Figure 61: Attitudes towards the smoking ban, January 2009
• Appendix -- Broader Market Environment
• Age structure of the population
  • Figure 65: Trends in the age structure of the UK population, by gender, 2003-13
• Socio-economic structure of the population
  • Figure 66: Adult population trends, by socio-economic group, 2003-13
• Lifestage structure of the population
  • Figure 67: Adult population trends, by lifestage, 2003-13
• Appendix -- Who Plays Bingo?
  • Figure 68: Participation in bingo (admission charged), by demographic sub-group, 2008