Table of Contents
Issues in the Market
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- Main issues
- Definitions
- Abbreviations
Insights and Opportunities
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- Go mobile to build new revenue streams
- Vegas-style resort could prove pedigree chum for dogs
- Make midweek off-peak
- Staff benefits, track benefits
- Use regularity to breed familiarity
Market in Brief
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- Central funding free courses to invest in new facilities and fixtures…
- …but bookmakers continue to hold the purse strings
- No other tactics but defend and diversify
- Televised football 2 – Racing attendances
- Jewels in TV crown can still promote course attendance
- Food and drink drive raceday expenditure
- Farewell to old friends, welcome festival fans
- Horse racing too expensive, dog racing too downmarket
- Dog racing better insulated against economic downturn
- Moves for better governance
- Courses look hot properties for investors
Fast Forward Trends
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- Trend 1: Sense of the Intense
- What’s it about?
- Observations
- What next?
- Trend 2: Bling and Buy
- What’s it about?
- Observations
- What next?
Internal Market Environment
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- Key Points
- Facilities and diversification
- Horse racing
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- Figure 1: Capital expenditure on grandstands and public facilities by British racecourses, 2003-11
- Only football spends more
- Better, not bigger
- Courting the corporate crowd
- Building new revenue streams
- Dog racing
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- Figure 2: BGRF grants for racecourse improvements, 1998-2006
- Media coverage
- Television: horse racing
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- Figure 3: Television coverage of horse racing, by channel, 2002-06
- More dedicated coverage…
- …but terrestrial exposure under threat
- Sponsors want terrestrial coverage
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- Figure 4: Percentage of horse races sponsored, 2002-06
- Turf TV v SIS
- Television: dog racing
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- Figure 5: Television coverage of greyhound racing, by channel, 2002-06
- Satellite stations go dog racing
- Mixed response to demise of the dog channel
- Raw materials
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- Figure 6: Horses in training, 2002-06
- Figure 7: Registered greyhound numbers, 2002-06
- Central funding
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- Figure 8: Horserace Betting Levy Board income, 1996/97-2006/07
- Figure 9: British Greyhound Racing Fund, Bookmaker’s voluntary contributions, 2004-07
- Bookies favourites for funding
- Can the business back two horses?
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- Figure 10: Leading horse race sponsors, by sector, 2006
- Legislation
- The Gambling Act
- No obstacles for horse racing…
- …but greyhound sector aims to widen its pools
- Horse racing targets touts
- Animal Welfare Act
- Dog racing beats regulation by a nose
- Can the sport afford welfare?
- Image
- Cheat if you like – but be kind to animals
- Improvements continue apace
- Horse racing rules on inside information
Broader Market Environment
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- Key points
- Economic conditions
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- Figure 11: Trends in personal disposable income and consumer expenditure, 2002-12
- Owners more vulnerable than spectators
- Crowd changes increase dog racing’s risk
- Demographic trends
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- Figure 12: Trends in the age structure of the UK population, by gender, 2002-12
- Better stadia can appeal to the old
- Racegoers have more money to spend
- Technology
- The Internet
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- Figure 14: Computer, Internet and broadband take-up, 2002-06
- Mobile phones
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- Figure 15: Features have and features used on mobile phones, 2003-07
- Nature
Competitive Context
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- Key points
- Rival sports
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- Figure 16: Interest in named sports/pastimes, 2002-06
- Television exposure
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- Figure 17: Leading televised sports, 2002-06
- Fireside more attractive than trackside?
- Punters need to see where their money goes
- Alternative attractions
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- Figure 18: Paid to watch sporting events, 2002-06
- Racegoing common, but not a habit
- Can you teach old dogs (and horses) new tricks?
- The fight for the punter’s pound
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- Figure 19: UK gambling stakes, by key sector, 2002-06
- Betting market favouritism under threat
- Competition for leisure time
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- Figure 20: Consumer expenditure on selected leisure goods and activities, 2002-07
Strengths and Weaknesses in the Market
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- Horse racing
- Strengths
- A familiar product
- First class facilities
- Positive public perceptions
- Betting market leadership
- Strong corporate sector
- Weaknesses
- A servant to many masters
- Highly competitive markets
- Irregular fixtures
- The will of the weather
- Falling attendances
- Dog racing
- Strengths
- No hurdles for novices
- Improving facilities
- More marketing
- Accessibility
- Weaknesses
- Public perceptions
- Lack of funding
- Clicking mice, not turnstiles
- Hot properties
Who’s Innovating?
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- Key points
- The innovation ball slowly gets rolling
- Dog racing clubs together
- Moving with the timings
- Technology at the turnstile and beyond
- Success with no strings (or wires) attached
- GOTTO develops new betting products
Market Size and Forecast
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- Key points
- On-course revenue growth driven from outside the betting ring
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- Figure 21: Consumer expenditure on dog and horse racing, on-course only, 2002-12
- Going looks good-to-firm in the long term
- Factors used in the forecast
Segment Performance
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- Horse racing
- Racecourses
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- Figure 22: UK racecourses, 2007
- First new courses since 1927
- Fixtures
- New fixtures set to raise raceday revenues
- Runners and races
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- Figure 24: UK horse race data, 2002-06
- More work for more horses
- Attendances
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- Figure 25: Attendance at horseracing meetings, 2002-06
- Figure 26: Horse racing attendance, by type of meeting, 2004 and 2006
- Figure 27: Horse racing attendance, by day of the week, 2004 and 2006
- Attendances on the downgrade
- Festival spirit bucks the trend
- Prize money
- Look what you would have won
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- Figure 28: Horse racing prize money, by source, 2002-06
- Sponsorship – horseracing
- Horseracing struggles to widen its circle of sponsors
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- Figure 29: Horse racing sponsorship revenues, 2002-05
- Dog racing
- Track numbers set to fall?
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- Figure 30: UK greyhound racecourses, 2002-07
- Bookmakers’ needs determine fixture list
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- Figure 31: NGRC meetings, 2002-06
- Welfare costs to damage ownership levels?
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- Figure 32: NGRC greyhound races, 2002-06
- Strong minority boasts growing crowds…
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- Figure 33: NGRC greyhound racing attendances, 2002-06
- …as regulars defect to shops and Internet
- Animal welfare at the expense of owner welfare
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- Figure 34: Prize money added by NGRC management and sponsors, 2002-06
- Sponsorship – dog racing
Companies and Brands
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- Key points
- Company developments
- Courses to join forces?
- Horse racing
- Governing bodies
- British Horseracing Authority (BHA)
- Horserace Betting Levy Board (HBLB)
- Major racecourse operators
- Jockey Club Racecourses (JCR)
- Key financials
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- Figure 35: Jockey Club Racecourses, financial performance, 2003-06
- Other developments
- Arena Leisure plc
- Key financials
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- Figure 36: Arena Leisure, financial performance, 2002-06
- Latest results
- Other developments
- Northern Racing Ltd
- Key financials
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- Figure 37: Northern Racing, financial performance, 2002-06
- Other developments
- Greyhound racing
- Governing bodies
- National Greyhound Racing Club (NGRC)
- British Greyhound Racing Board (BGRB)
- British Greyhound Racing Fund (BGRF)
- Major greyhound stadia operators
- GRA Ltd
- Gaming International
- Key financials
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- Figure 38: Gaming International, financial performance, 2005 and 2006
- Other operators
Brand Communication and Promotion
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- Key points
- Targeted promotions
- Teaming up with other sports
- Focus on advance sales
- New media
- Old media
- PR
- Work to do
- Top Dog proves a pup?
The Consumer – Horse Racing
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- Key points
- A search for stayers
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- Figure 39: Horse racing attendance, May 2007
- Horse racing attendance: demographic analysis
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- Figure 40: Frequency of horse racing visits, by demographic sub-group, May 2007
- Money for more than betting
- Catch ’em young
- Attitudes towards horse racing
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- Figure 41: Attitudes towards horse racing, May 2007
- Appealing to social animals
- Customers need help in containing costs
- Attitudes towards horse racing by frequency of attendance
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- Figure 42: Attitudes towards horse racing, by frequency of attendance, May 2007
- Glamour appeals to the uninitiated
- Money no object for only the hard-betting core
- Most popular attitudes towards horse racing: Demographic analysis
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- Figure 43: Most popular attitudes towards horse racing, by demographic sub-group, May 2007
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- Figure 44: Next most popular attitudes towards horse racing, by demographic sub-group, May 2007
The Consumer – Dog Racing
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- Key points
- The majority express disinterest
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- Figure 45: Dog racing attendance, May 2007
- Dog racing attendance: Demographic analysis
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- Figure 46: Frequency of dog racing visits, by demographic sub-group, May 2007
- Why does the attendance habit lapse?
- Close relatives too close for comfort?
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- Figure 47: Dog racing attendance, by frequency of horseracing attendance, May 2007
- Attitudes towards dog racing
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- Figure 48: Attitudes towards dog racing, May 2007
- Integrity issues hit harder off-course than on it
- Attitudes towards dog racing by frequency of attendance
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- Figure 49: Attitudes towards dog racing, by frequency of attendance, May 2007
- Racegoers seeing improvements…
- …but the word is not spreading off-course
- Attitudes towards dog racing: demographic analysis
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- Figure 50: Attitudes towards dog racing, by demographic sub-group, May 2007
- Paying for quality, not quantity
The Consumer – Identifying Prime Racing Targets
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- Key points
- A bit of both?
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- Figure 51: Combinations of dog and horse racing attendance and potential attendance, May 2007
- Racing combinations: demographic analysis
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- Figure 52: Combinations of dog and horse racing attendance and potential attendance, by demographic sub-group, May 2007
- Attitudes towards dog racing – positive or negative?
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- Figure 53: Positive and negative attitudes towards dog racing, May 2007
- Dog racing – positive vs negative: demographic analysis
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- Figure 54: Positive and negative attitudes towards dog racing, May 2007
- Attitudes towards horse racing – positive or negative?
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- Figure 55: Positive and negative attitudes towards horse racing, May 2007
- Horse racing – positive vs negative: demographic analysis
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- Figure 56: Positive and negative attitudes towards horse racing, by demographic sub-group, May 2007
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