Table of Contents
Introduction
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- Definition
- Abbreviations
Issues in the Market
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- How can betting shops stem the ongoing decline in horserace betting?
- Can betting shops rely on continued machines revenue growth?
- What is the potential of football betting?
- How can consumers be persuaded to bet more regularly?
- To what extent is online betting cannibalising the retail trade?
- What other sports provide the best opportunities for LBOs?
Future Opportunities
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- Trend: FSTR and HYPR
- Trend: Experience is All
Executive Summary
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- The market
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- Figure 1: Betting shops market size and forecast, 2005-15
- Downturn depresses the market but return to growth on the cards
- Gaming machine revenues match OTC, while horseracing remains on top
- Market factors
- Machines’ future looking secure, while high-street proliferation continues
- Macro-economic factors paint a mixed picture for the future
- Companies, brands and innovation
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- Figure 2: UK betting shop market operators, by number of outlets, February 2011
- Tote sale to bring big players closer
- Major chains expand while independents fold
- Simplicity, convenience and technology add to the appeal
- The consumer
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- Figure 3: Betting shop visiting habits, May 2009-January 2011
- Regular visiting remains a minority activity
- Racing retains broadest levels of interest
- LBOs retain unwelcoming image
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- Figure 4: Attitudes towards betting shops, January 2011
- What we think
Internal Market Environment
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- Key points
- Licence fees add to smaller shops’ cost burden
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- Figure 5: Betting shop licence fees, February 2011 (rates payable from August 2009)
- Post-demand test land grab continues apace
- Taxation target to shift online?
- B2 cash cows can carry on milking
- When the Levy breaks...
- Prevalence survey eases problem gambling headache
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- Figure 6: Betting sector self-exclusions, 2008-10
- Isolated integrity issues leave offices largely untouched
Broader Market Environment
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- Key points
- Inflation risk threatens market’s resilience
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- Figure 7: Spending intentions towards leisure activities in coming year, March 2010
- Less work = fewer bets
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- Figure 8: Employment and unemployment, by gender, 2005-15
- Racing bettors retiring from shops
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- Figure 9: Trends in the age structure of the UK population, by gender, 2005-15
- Upward mobility: More than an occasional opportunity for racing?
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- Figure 10: Forecast adult population trends, by socio-economic group, 2005-15
- Television as a shop window for betting
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- Figure 11: Share of TV coverage, by most televised sports, 2006-10
Competitive Context
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- Key points
- Horseracing loses ground – but web chases other targets
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- Figure 12: Gambling activities in the past year, by gender, 2010
- Online headlines overshadow shop sector’s significance
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- Figure 13: Betting, online bingo and gambling, excluding the National Lottery, 2009-10
- Betting shops gain from gambling’s mainstream leisure status
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- Figure 14: Consumer expenditure on selected leisure activities, 2005-10
Strengths and Weaknesses in the Market
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- Strengths
- Gaming machines
- New premises
- Market leadership
- Football betting
- Lower profile problem gambling
- Weaknesses
- Rising costs
- Decline of OTC trade
- Replacing the Levy
- Public image
- Economic outlook
Who’s Innovating?
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- Key points
- New ways for consumers to jump on board
- Cash a trump card in bringing the online into shops
- Calling in at the office
- Standing ovation for 3DTV?
Market Size and Forecast
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- Key points
- Recession tips betting shops into decline
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- Figure 15: Consumer expenditure in betting shops, 2005-16
- Forecast
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- Figure 16: Forecast of consumer expenditure in betting shops, 2005-15
- Forecast methodology
Segment Performance
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- Key points
- Machines ready to match bets
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- Figure 17: UK betting shop expenditure*, by segment, 2006-11
- Racing flags but remains clear OTC leader
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- Figure 18: UK betting shop over the counter business, by segment, 2008-10
- Segment forecasts
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- Figure 19: Forecast of consumer expenditure on over-the-counter betting in betting shops, 2005-15
- Figure 20: Forecast of consumer expenditure on gaming machines in betting shops, 2005-15
Market Share
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- Key points
- Growth of giants distracts from decline of the independents
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- Figure 21: UK betting shop market, by number of outlets, February 2011
- Tote sale opens fast track to top table
Companies and Products
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- Key points
- Betfred
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- Figure 22: Financial performance of Betfred, 2009-10
- Coral
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- Figure 23: Financial performance of Gala Coral’s Coral division, 2008-09
- Ladbrokes
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- Figure 24: Financial performance of Ladbrokes’ UK retail segment, 2009-10
- Scotbet
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- Figure 25: Financial performance of Morrisons Bookmaker, 2008-09
- Totesport
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- Figure 26: Financial performance of Tote in the UK betting shops market, 2009-10
- William Hill
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- Figure 27: Financial performance of William Hill’s retail segment, 2009-10
Brand Communication and Promotion
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- Key points
- Value-led market moves away from traditional media
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- Figure 28: Bookmakers’ adspend (excluding online-only operators), by media type, 2006-10*
How Often Do We Visit Betting Shops?
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- Key points
- Core customers cut back – but keep on coming
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- Figure 29: Betting shop visiting habits, May 2009-January 2011
- Can the betting occasion become routine?
- Fun of the festival can put racing on the calendar
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- Figure 30: Betting shop visiting habits by participation in betting shop activities, January 2011
What Do We Gamble On In Betting Shops?
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- Key points
- Horserace betting underplays its appeal to women
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- Figure 31: Participation in betting shop activities, January 2011
- Can London Olympics open sports betting beyond football?
- Sport better placed than shops to stimulate horserace betting interest
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- Figure 32: Participation in betting shop activities by participation in betting shop activities, January 2011
What Do We Think About Betting Shops?
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- Key points
- Attraction about more than just looks
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- Figure 33: Attitudes towards betting shops, January 2011
- Shops still home to the occasion bet...
- ...but calls to action hit on a different crowd
- Getting football match bettors onto the transfer list
Betting Shop Gambling Repertoires
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- Key points
- Occasional bettors with a singular focus
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- Figure 34: Repertoire of participation in betting shop activities, January 2011
- Racing misses out on multiples
Betting Shop Target Groups
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- Key points
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- Figure 35: Betting shop target groups, January 2011
- The Blinkered
- Good Sports
- Happy Shoppers
- Horse Traders
Appendix – Broader Market Environment
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- Figure 36: GDP, PDI, consumer expenditure and savings, at constant 2010 prices, 2005-15
- Figure 37: GfK NOP Consumer confidence index, January 1988-December 2010
- Figure 38: Forecast adult population trends, by lifestage, 2005-15
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Appendix – Market Size and Forecast
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- Figure 39: Forecast for consumer expenditure in betting shops, best- and worst-case scenarios, 2010-15
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Appendix – Segment Performance
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- Figure 40: Forecast for over-the-counter betting revenues in betting shops, best- and worst-case scenarios, 2010-15
- Figure 41: Forecast for gaming machine revenues in betting shops, best- and worst-case scenarios, 2010-15
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Appendix – How Often do we Visit Betting Shops?
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- Figure 42: Betting shop visiting habits, by demographics, January 2011
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Appendix – What Do We Gamble on in Betting Shops?
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- Figure 43: Participation in betting shop activities, by demographics, January 2011
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Appendix – What Do We Think About Betting Shops?
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- Figure 44: Attitudes towards betting shops, by demographics, January 2011
- Figure 45: Attitudes towards betting shops, by most popular attitudes towards betting shops, January 2011
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- Figure 46: Attitudes towards betting shops, by next most popular attitudes towards betting shops, January 2011
- Figure 47: Attitudes towards betting shops, by current betting shop visitors, January 2011
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- Figure 48: Attitudes towards betting shops, by lapsed and non-betting shop visitors, January 2011
- Figure 49: Attitudes towards betting shops, by participation in betting shop activities, January 2011
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Appendix – Betting Shop Gambling Repertoires
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- Figure 50: Repertoire of participation in betting shop activities, by demographics, January 2011
- Figure 51: Participation in betting shop activities, by repertoire of participation in betting shop activities, January 2011
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- Figure 52: Attitudes towards betting shops by repertoire of participation in betting shop activities, January 2011
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Appendix – Betting Shop Target Groups
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- Figure 53: Target groups, by demographics, January 2011
- Figure 54: Betting shop visiting habits, by target groups, January 2011
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- Figure 55: Participation in betting shop activities, by target groups, January 2011
- Figure 56: Attitudes towards betting shops, by target groups, January 2011
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