Introduction:

This report examines the market for licensed betting shops, a sector that has been positively influenced by a change in taxation law in 2001. Switching the onus from the consumer paying tax to the betting shop operator doing so has led to punters investing in bigger stakes and reinvesting their winnings, something that has greatly benefited the industry. Mintel’s exclusive market size analyse shows that stakes have grown dramatically, by 82% between 1998 and 2002, reflecting the tremendous boost given to the market by the switch to the gross profits tax-based regime in late 2001. A further but less dramatic increase in stakes is anticipated in 2003.

Introduction:

This report examines the market for licensed betting shops, a sector that has been positively influenced by a change in taxation law in 2001. Switching the onus from the consumer paying tax to the betting shop operator doing so has led to punters investing in bigger stakes and reinvesting their winnings, something that has greatly benefited the industry. Mintel’s exclusive market size analyse shows that stakes have grown dramatically, by 82% between 1998 and 2002, reflecting the tremendous boost given to the market by the switch to the gross profits tax-based regime in late 2001. A further but less dramatic increase in stakes is anticipated in 2003.

However, this benefit must be seen as it is - one small step forward against the background of generally outdated legislation which governs the gambling industry as a whole. The government has recognised that sweeping changes need to be brought - in line with the recommendations of The Budd Report - but meanwhile, operators are labouring under the uncertainty of waiting to hear when, and indeed if, all this relaxation of rules will happen.

‘Betting Shops, 2003’ provides all the necessary information for operators, marketers and analysts alike to gauge the significance of industry trends, helping to form an accurate and thoroughly practical understanding of the market

Report coverage:

This report offers you a fresh assessment of:

- Market sizes and trends

- Market drivers

- Supply structures

- Market shares

- Advertising and promotion

- Consumer attitudes and purchasing trends - qualitative and quantitative research

- Future trends

- Five year sales forecasts

Major findings include:

Consumer trends - Betting is something of an outsider to the majority of UK consumers, according to exclusive consumer research throughout this report. Less than one in ten of consumers place a bet in a betting shop once a month or more often, indicating that this is a leisure activity popular with only a fairly small number of the total population.

However, Mintel's findings show that there would seem to be plenty of potential for operators; almost half of all adults said they had never placed a bet in a betting shop but would consider doing so in the future. Once the legislation governing how operators can advertise their shops has been relaxed, it should mean that bookmakers can attract a wider and larger customer base. Perhaps even more encouraging are findings that show just under one in six of all adults chance a bet on the major sporting events. This propensity to have a flutter on events such as The Grand National, The Derby or the football World Cup continues to provide industry marketers with a ready supply of opportunities to increase their regular customer base.

Other related reports include:

- Remote Betting - UK, Leisure Intelligence, July 2003

- Sport and The Media - UK, Leisure Intelligence, May 2003

- Spectator Sports - UK, Leisure Intelligence, April 2003

- British Lifestyles - UK, Special Report, 2003

- In-home Interactive Media - UK, Leisure Intelligence, December 2002

- Casinos - UK, Leisure Intelligence, November 2002

- The National Lottery - UK, Leisure Intelligence, August 2002

- Leisure and the Internet - UK, Leisure Intelligence, May 2002

- Gaming Machines - UK, Leisure Intelligence, March 2002

- The Gambler - UK, Special Report, 2002

- The Leisure Business - UK, Leisure Intelligence, August 2003

- Satellite & Cable TV - UK, Leisure Intelligence, August 2003

- Sports Participation - UK, Special Report, 2003

- Dog & Horse Racing - UK, Leisure Intelligence, September 2003

- Leisure: Living for Today - UK, Special Report, 2003

Definitions

Mintel defines a betting shop as a licensed premises located in a public place to which adults (over-18s) can go to place a bet. It therefore excludes gambling in private clubs or other forms of gambling such as football pools and lotteries in which coupons/tickets are acquired in other non-licensed ways.