Author: Mintel Group Ltd.
Last saved by: HTTP server

Bingo - UK - April 2009

ISSUES IN THE MARKET
Main issues
Definition
Abbreviations
FUTURE OPPORTUNITIES
Online Video Bingo: Reaching the new targets
Mintel Inspire
Opportunity
Can bingo be retro cool?
Mintel Inspire
Opportunity
Bingo Brain Training: Retaining and building the traditional market
A bingo metro?
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
WHO'S INNOVATING?
Key points
Video and server bingo
Social Bingo guide site launched
Existing online sites get creative
Mobile bingo the next “big thing”
Interactive bingo on the cards
Bingo goes green, or is that red?
Offline goes online
Bingo moves from gaming to betting?
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
POTENTIAL PLAYERS OF THE FUTURE
Key points
A shrinking target market but…
Figure 49: Bingo playing habits, December 2006 and January 2009
Still a large target to aim at
Figure 50: Bingo targets, December 2006 and January 2009
Young, single females are prime targets…
Figure 51: Bingo targets*, by gender, age, lifestage and marital status, January 2009
But should clubs only opt for the obvious?
The internet and interactive TV: ally and competitor
Figure 52: Bingo targets*, by TV reception, internet access and internet frequency, January 2009
Targets are relatively affluent
Figure 53: Bingo targets*, by socio-economic group, household income and ACORN group, January 2009
Focus on targets who are also gamblers
Figure 54: People who don’t play bingo already, by gender, age and socio-economic group, 2008
Can the Lottery help?
Figure 55: Attitudes towards gambling, by gambling activities done in the last 12 months, August 2008
Figure 56: Activities of people who don’t play bingo already, 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
ATTITUDES TOWARDS BINGO
Key points
Some resistance to electronic games
Figure 62: Attitudes towards games in bingo clubs, January 2009
The recession starts to bite
Figure 63: Bingo players who have recently cut back on bingo spending to save money, January 2009
Little scope for adjusting jackpots
An important social element
Figure 64: General attitudes towards bingo, by bingo playing habits, January 2008
Beware online and other venues
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
APPENDIX – POTENTIAL PLAYERS OF THE FUTURE
Bingo playing habits – detailed demographics
Figure 69: Bingo playing habits, by demographic sub-group, January 2009
People who don’t play bingo already – detailed demographics
Figure 70: Gamblers vs gamblers who don’t play bingo already, by demographic sub-group, 2008
Figure 71: Most popular activities of people who don’t play bingo already, by demographic sub-group, 2008
Figure 72: Next most popular activities of people who don’t play bingo already, by demographic sub-group, 2008
APPENDIX – ATTITUDES TOWARDS BINGO
Figure 73: General attitudes towards bingo, by demographic sub-group, January 2008

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.