Rapid changes in the betting industry in terms of deregulation and new supply developments are transforming the sector at a rate that is difficult to keep pace with. The recent development of the offshore market, through increased Internet and telephone betting, is entering a new phase with the abolition of betting duty, as some operators return to the UK and others remain offshore. In this report, Mintel examines the impact of these changes and the products and strategies which differentiate the market.

Mintel acknowledges that traditional lines of segmentation are changing as technology removes distinctions between offshore and onshore supply. The report seeks to define and examine the trends which now determine the market through detailed analysis of companies consumer offers; analysis of extensive interviews with key operators and detailed consumer profiles.

Other reports of relevance include:

- Betting Shops, Leisure Intelligence, July 2001

- Late licensing, Leisure Intelligence, July 2001

- Leisure Venue Catering, Leisure Intelligence, July 2001

- Online Betting, Leisure Intelligence, May 2001

- Bingo, Leisure Intelligence, April 2001

- Casinos, Leisure Intelligence, January 2001

- The Football Business, Leisure Intelligence, November 2000

- Leisure on the Internet, Leisure Intelligence, May 2000

- Cue Sports, Leisure Intelligence, December 1999

- The National Lottery, Leisure Intelligence, December 1999.

Definitions

The main focus of this report is on offshore betting, in the light of the Government's abolition of betting duty. The report looks at the overall betting market and the proportion of offshore betting in the market as a whole. The report takes sports betting as a particular focus as this continues to be the main driver of the British and offshore markets. Sports betting also represents a key area of growth for British companies operating offshore.

It looks at the major players through detailed company profiles. Also included are industry views on offshore betting, both the current state of the market compared to the recent past, and the likely future of the market given the imminent changes. Consumer attitudes towards offshore betting are also included.

Consumer research

In addition to the standard breaks, Mintel has analysed the consumer research in the following manner:

Lifestages are derived from analysis of the exclusive consumer research and are split into four main groups:

Pre-family	aged under 35 who are not parents
Family	aged 15-54 with at least one child aged under 16 still at home
Empty nesters/no family	aged 35-54 with no children aged under 16
Post-family	aged over 55.

As part of an ongoing policy to find new ways of analysing data, Mintel has created

Special Groups of consumers to typify consumer habits in the early years of the 21st Century:

Unlike the lifestage groups, these groups represent only sections of the population and

do not account for all adults:

Benefit dependents	Es aged 35+ - those who are reliant solely on state benefits (around 10% of the adult population)
Families on a tight budget	working C2Ds with at least one child aged under 16 in the household - the majority have limited incomes which must be spent on a relatively large household (around 10% of the adult population)
Better-off families	working ABC1s with at least one child aged under 16 in the household (around 9% of the population)
Better-off empty nesters	ABC1s aged 35-64 who are working with no children aged under 16 living at home. They are, therefore, the classic no family/empty nesters with probably a high income that can be spent on themselves rather than on family (around 8% of the adult population)
Working managers	working ABs (around 9% of the population)
Working women	women in part- or full-time employment (around 21% of the adult population).

Abbreviations

3G	Third generation
AWP	Amusement With Prizes
BMRB	British Market Research Bureau
CRM	Customer Relationship Management
IDC	International Data Corporation
iTV	Interactive television
PC	Personal Computer
PDI	Personal Disposable Income
SIS	Satellite Information Services
WIPO	World Intellectual Property Organisation

09/2001