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Published by: Mintel International Group Ltd.
Published: Jul. 1, 2009 - 205 Pages
Table of Contents
- Issues in the Market
- Main issues
- Definition
- Abbreviations
- Future Opportunities
- The right facts at our fingertips
- Mintel Inspire
- Opportunity
- Ready for the next media revolution?
- Mintel Inspire
- Opportunity
- Game of opinions can woo women
- Opportunity
- Third place a better than each-way bet
- Mintel Inspire
- Opportunity
- Create, share, engage
- Mintel Inspire
- Opportunity
- Market in Brief
- Small stakes add up to a £1.45 billion market
- Sports betting the market leader - but the race has a long way to run
- Broadband penetration: Access more areas
- Interactive TV is not dead, it’s just resting
- Mobile’s potential moves closer to becoming reality
- Gambling in the recession: Not as well insulated as it thinks it is?
- Problem gambling still the industry’s number-one image problem
- Consumers want to keep it real
- Advertising succeeds in building brands
- Internal Market Environment
- Key points
- Internet access: Broadband widens the market
- Figure 1: Average broadband speeds, 2006-08
- Internet usage: Unhooking the fixed line
- Figure 2: Access to the internet, by platform, 2007-08
- Decline of iTV masks magic potential of the box
- Digital TV penetration
- Figure 3: UK multi-channel TV penetration, by platform, 2005-09*
- Figure 4: Trends in digital TV usage, 2007-09
- Mobile phone usage: 3G cast in the broadband role
- Figure 5: Estimated share of 3G subscriptions, 2005-08
- Mobile phone networks get on board
- Smartphones creating potential for growth...
- Figure 6: Mobile phone features used, 2004-08
- ... and iPhone example can turn potential into reality
- Mobile internet lets gamblers act on impulse
- Figure 7: Methods of accessing the internet when away from home or work, July 2008
- Legislation and regulation
- Future legislation: An offshore levy…
- ... or an extended domestic one?
- Europe-wide legislation unlikely in near future
- Gambling addiction: The industry’s problem?
- Figure 8: Callers to GamCare helpline, 2006-07
- An image problem of social irresponsibility
- Broader Market Environment
- Key points
- Recession-proofing: Historic precedents are good...
- Figure 9: Trends in selected areas of discretionary expenditure, at current and constant prices, 1989-94
- ... but current gamblers will not sustain growth alone
- Figure 10: Spending cutbacks, April 2009
- New gamblers affluent - but at greater risk of churn
- Figure 11: Gambling habits of UK adults, by level of education and occupational status, 2007
- Demographic trends: Online gambling to by-pass the ageing society
- Figure 12: Type of gamblers, by age, 2007
- Figure 13: Forecast adult population trends, by lifestage, 2004-14
- Mobile take-up laying ground for a handset gambling boom
- Figure 14: Demographic profile of PC-based and mobile internet active audiences, by age, Q3, 2008
- Recession to keep it a man’s world wide web?
- Figure 15: Type of gamblers, by gender, 2007
- Competitive Context
- Key points
- Online v offline gambling: No family feud
- Figure 16: Type of gamblers, by age, 2007
- Platform competition: Are the PC’s days of dominance numbered?
- Figure 17: Participation in remote gambling, by platform, 2006-08
- Internal competition: The new battleground of B2B
- Betting shop business pushes gambling towards the leisure podium
- Figure 18: Consumer expenditure on selected leisure goods and activities, 2003-08
- Figure 19: Spending cutbacks, April 2009
- Strengths and Weaknesses in the Market
- Strengths
- Weaknesses
- Who’s Innovating?
- Key points
- Reality bites
- Handset-to-handset combat
- DIY gaming
- Developing a social side
- Turning fantasy players into real-life bettors
- Slot branding goes reel-to-reel
- Market Size and Forecast
- Key points
- Approaching three million gamblers spending almost £1.5 billion
- Figure 20: UK online and interactive gambling market size, by value* and volume, 2005-14
- Growing importance as well as value
- Segment Performance
- Key points
- Sports betting: Popularity provides the motive, technology creates the opportunity
- Figure 21: UK online and interactive gambling market, by segment, 2005-09
- Britons stick to what their trusted brands know
- Player volume patterns mirror variations in value
- Figure 22: Popularity of gambling activities taken part in remotely, 2006-08
- Market Share
- Key points
- Sportsbook specialists lead the field
- Figure 23: UK online and interactive gambling market, by operators’ market share, 2009
- Fragmentation sets stage for M&A activity
- Companies and Products
- Key points
- Major operators
- Multi-sector, multi-product operators
- Ladbrokes
- Figure 24: Ladbrokes eGaming gross win and net revenues, 2005-08
- Figure 25: Ladbrokes eGaming key performance indicators, 2006-08
- Figure 26: Ladbrokes eGaming performance, by product, 2007-08
- William Hill
- Figure 27: William Hill key financial data, 2007-08
- Online-focused operators
- Bet365
- Figure 28: Bet365 turnover and profit, 2005 and 2008
- Sky Bet
- Figure 29: Sky Bet revenues 2007 and 2008*
- Sportingbet
- Figure 30: Sportingbet revenues, by product, 2007 and 2008*
- Figure 31: Sportingbet revenues, by region, 2008*
- 888
- Figure 32: 888 revenues, by product, 2007 and 2008
- Figure 33: 888 total operating income, by region, 2007 and 2008
- 32Red
- Figure 34: 32Red key financial data and performance indicators, 2007 and 2008
- PartyGaming
- Figure 35: PartyGaming net revenues, 2007 and 2008
- Figure 36: PartyGaming key performance indicators, 2007 and 2008
- Cashcade
- Player-to-player operators
- Betfair
- Figure 37: Betfair key financial performance, 2007 and 2008
- Brand Elements
- Key points
- Brand map
- Figure 38: Attitudes towards and usage of online gambling brands, June 2009
- Brand qualities of online gambling brands
- All about the profits?
- Figure 39: Personalities of various online gambling brands, June 2009
- Experience of online gambling brands
- Ladbrokes and William Hill most popular
- Figure 40: Consumer usage of various online gambling brands, June 2009
- Brand intentions for online gambling brands
- Web specialists edge on consideration
- Figure 41: Consideration of various online gambling brands, June 2009
- Brand satisfaction for online gambling brands
- Betfair and Ladbrokes most excellent
- Figure 42: Satisfaction with various online gambling brands, June 2009
- Brand commitment to online gambling brands
- Online specialists most likely to alienate
- Figure 43: Commitment to various online gambling brands, June 2009
- Ladbrokes.com
- What the consumer thinks
- Figure 44: Attitudes towards the Ladbrokes.com brand, June 2009
- Betfair
- What the consumer thinks
- Figure 45: Attitudes towards the Betfair brand, June 2009
- William Hill
- What the consumer thinks
- Figure 46: Attitudes towards the William Hill brand, June 2009
- Brand Communication and Promotion
- Key points
- New players stake big
- Figure 47: Top 20 online gaming brands, by adspend, 2005-08
- Human touch reaches offline
- Attention turns to affiliates
- Google returns to the table
- How We Gamble Online
- Key points
- Emulating the Lottery: Odds are it won’t be you
- Figure 48: Gambling on the internet for real money, April 2009
- Betting to give TV its most sporting chance
- Sports betting well-placed to become a regular fixture
- Event betting not so special
- Mobile still awaiting the call
- Figure 49: Devices used to gamble online in the past 12 months, April 2009
- Online and mobile gamblers buy in to platform convergence
- Early adoption can open up new key markets
- Breadth of products’ appeal will shape their mobile offerings
- Online v Offline Gambling
- Key points
- Online gambling: An equal opportunities provider
- Figure 50: Gambling done in person in the last 12 months, April 2009
- Mobile could go to the dogs
- Figure 51: Most popular gambling done in person in the last 12 months, by devices used to gamble online, April 2009
- Figure 52: Next most popular gambling done in person in the last 12 months, by devices used to gamble online, by, April 2009
- The online gambler: A creature of offline habits
- Casino players spurn bingo advances and turn to sports betting
- Where We Gamble Online
- Key points
- Offline brands trusted in a climate of online suspicion
- Figure 53: Websites used to gamble online in the last 12 months, April 2009
- Advertisers out to buy reputation
- Betfair benefits from wider web trends
- Pureplay online players best placed to go multi-platform
- How We Gamble in the Recession
- Key points
- Almost half of online gamblers cutting back
- Figure 54: Gambling habits and the recession, April 2009
- Recession-proofing: Demographics favour offline over online
- Newcomers vulnerable to recessionary churn
- Mobile must stand alone to build a solid future
- Bingo and pools ripe for a return to their roots
- What We Think About Online Gambling
- Key points
- No new nation of gamblers...
- Figure 55: Statements on online gambling, April 2009
- ... but existing punters may risk developing problem habits
- A solitary experience shared: New definitions of social gambling required
- Mobile gambling: Consumers are ready to be convinced
- Casino players trust neither the house nor themselves
- Bingo players stop talking to strangers
- Wider public fear for financial health over online safety
- Figure 56: Statements on gambling, April 2009
- Cashless society creating opportunity for mobile...
- ...but carrying cash helps many players stay in control
- Appendix - Broader Market Environment
- Figure 57: Trends in personal disposable income and consumer expenditure, 2004-14
- Figure 58: Trends in the age structure of the UK population, by gender, 2004-14
- Figure 59: Forecast adult population trends, by socio-economic group, 2004-14
- Figure 60: UK household sizes, 2004-14
- Appendix - How We Gamble Online
- Figure 61: Most popular gambling done in person in the last 12 months, by demographic sub-group, April 2009
- Figure 62: Next most popular gambling done in person in the last 12 months, by demographic sub-group, April 2009
- Figure 63: Devices used to gamble online in the past 12 months, by demographic sub-group, April 2009
- Figure 64: Devices used to gamble online in the past 12 months, by most popular gambling done in person in the last 12 months, April 2009
- Figure 65: Devices used to gamble online in the past 12 months, by next most popular gambling done in person in the last 12 months, April 2009
- Figure 66: Devices used to gamble online in the past 12 months, by devices used to gamble online in the past 12 months, April 2009
- Appendix - Online v Offline Gambling
- Figure 67: Gambling on the internet for real money, by demographic sub group, April 2009
- Figure 68: Gambling done in person in the last 12 months, by gambling on the internet for real money, April 2009
- Figure 69: Devices used to gamble online in the past 12 months, by gambling on the internet for real money, April 2009
- Figure 70: Gambling on the internet for real money, by gambling on the internet for real money, April 2009
- Figure 71: Gambling on the internet for real money, by demographic sub-group, April 2009
- Figure 72: Gambling done in person in the last 12 months, by gambling on the internet for real money, April 2009
- Figure 73: Devices used to gamble online in the past 12 months, by gambling on the internet for real money, April 2009
- Figure 74: Gambling on the internet for real money, by gambling on the internet for real money, April 2009
- Figure 75: Gambling on the internet for real money, by demographic sub-group, April 2009
- Figure 76: Gambling done in person in the last 12 months, by gambling on the internet for real money, April 2009
- Figure 77: Devices used to gamble online in the past 12 months, by gambling on the internet for real money, April 2009
- Figure 78: Gambling on the internet for real money, by gambling on the internet for real money, April 2009
- Figure 79: Gambling on the internet for real money, by gambling on the internet for real money, April 2009
- Appendix - Where We Gamble Online
- Figure 80: Most popular websites used to gamble online in the last 12 months, by demographic sub-group, April 2009
- Figure 81: Next most popular websites used to gamble online in the last 12 months, by demographic sub-group, April 2009
- Figure 82: Other websites used to gamble online in the last 12 months by demographic sub-group, April 2009 (continued)
- Figure 83: Websites used to gamble online in the last 12 months, by demographic sub-group, April 2009
- Figure 84: Most popular gambling done in person in the last 12 months, by websites used to gamble online in the last 12 months, April 2009
- Figure 85: Next most popular gambling done in person in the last 12 months, by websites used to gamble online in the last 12 months, April 2009
- Figure 86: Other gambling done in person in the last 12 months, by websites used to gamble online in the last 12 months, April 2009
- Figure 87: Devices used to gamble online in the past 12 months, by most popular websites used to gamble online in the last 12 months, April 2009
- Figure 88: Devices used to gamble online in the past 12 months, by next most popular websites used to gamble online in the last 12 months, April 2009
- Figure 89: Devices used to gamble online in the past 12 months, by other websites used to gamble online in the last 12 months, April 2009
- Figure 90: Most popular websites used to gamble online in the last 12 months, by websites used to gamble online in the last 12 months, April 2009
- Figure 91: Next most popular websites used to gamble online in the last 12 months, by websites used to gamble online in the last 12 months, April 2009
- Figure 92: Other websites used to gamble online in the last 12 months, by websites used to gamble online in the last 12 months, April 2009
- Figure 93: Websites used to gamble online in the last 12 months, by gambling on the internet for real money, April 2009
- Figure 94: Websites used to gamble online in the last 12 months, by gambling on the internet for real money, April 2009
- Appendix - How We Gamble in the Recession
- Figure 95: Gambling habits and recession, by demographic sub-group, April 2009
- Figure 96: Gambling habits and recession, by most popular gambling done in person in the last 12 months, April 2009
- Figure 97: Gambling habits and recession, by next most popular gambling done in person in the last 12 months, April 2009
- Figure 98: Gambling habits and recession, by devices used to gamble online in the past 12 months, April 2009
- Figure 99: Gambling habits and recession, by gambling on the internet for real money, April 2009
- Figure 100: Gambling habits and recession, by gambling on the internet for real money, April 2009
- Figure 101: Gambling habits and recession, by most popular websites used to gamble online in the last 12 months, April 2009
- Figure 102: Gambling habits and recession, by next most popular websites used to gamble online in the last 12 months, April 2009
- Figure 103: Gambling habits and recession, by other websites used to gamble online in the last 12 months, April 2009
- Appendix - What We Think About Online Gambling
- Figure 104: Most popular statements on online gambling, by demographic sub-group, April 2009
- Figure 105: Next most popular statements on online gambling, by demographic sub group, April 2009
- Figure 106: Statements on online gambling, by most popular gambling done in person in the last 12 months, April 2009
- Figure 107: Statements on online gambling, by next most popular gambling done in person in the last 12 months, April 2009
- Figure 108: Statements on online gambling, by devices used to gamble online in the past 12 months, April 2009
- Figure 109: Statements on online gambling, by gambling on the internet for real money, April 2009
- Figure 110: Statements on online gambling, by gambling on the internet for real money, April 2009
- Figure 111: Statements on online gambling, by most popular websites used to gamble online in the last 12 months, April 2009
- Figure 112: Statements on online gambling, by next most popular websites used to gamble online in the last 12 months, April 2009
- Figure 113: Statements on online gambling, by other websites used to gamble online in the last 12 months, April 2009
- Figure 114: Most popular statements on online gambling, by statements on online gambling, April 2009
- Figure 115: Next most popular statements on online gambling, by statements on online gambling, April 2009
- Figure 116: Statements on online gambling, by gambling habits and recession, April 2009
- Statements regarding gambling
- Figure 117: Most popular statements on gambling by demographic sub-group, April 2009
- Figure 118: Next most popular statements on gambling, by demographic sub group, April 2009
- Figure 119: Statements on gambling, by most popular gambling done in person in the last 12 months, April 2009
- Figure 120: Statements on gambling, by next most popular gambling done in person in the last 12 months, April 2009
- Figure 121: Statements on gambling, by devices used to gamble online in the past 12 months, April 2009
- Figure 122: Statements on gambling. by gambling on the internet for real money, April 2009
- Figure 123: Statements on gambling, by gambling on the internet for real money, April 2009
- Figure 124: Statements on gambling, by most popular websites used to gamble online in the last 12 months, April 2009
- Figure 125: Statements on gambling, by next most popular websites used to gamble online in the last 12 months, April 2009
- Figure 126: Statements on gambling, by other websites used to gamble online in the last 12 months, April 2009
- Figure 127: Most popular statements on gambling by statements on gambling, April 2009
- Figure 128: Next most popular statements on gambling, by statements on gambling, April 2009
- Figure 129: Statements on gambling, by gambling habits and recession, April 2009
- Figure 130: Statements on online gambling, by most popular statements on gambling, April 2009
- Figure 131: Statements on online gambling, by next most popular statements on gambling, April 2009
AbstractIs Online and Interactive Gambling More Attractive to Casual or Hardcore Gamblers?
Only a very small minority of UK adults actually participate in online gambling, but very few will be unaware of its existence and a large majority will have formed some sort of opinion about it. For many non-gaming brands, the normalisation of gambling in general led by the success of the National Lottery, and the introduction of the Gambling Act 2005, have raised their interest in its online sector as a valuable new source of revenue. But for many consumers, and sections of the opinion-leading press, remote gambling is a dangerous vice set to bring addiction and ruin to millions.
What is clear is that online and interactive gambling is already a significant leisure market sector and is set to gain further from wider trends in society towards participation in web-based entertainment and the huge untapped opportunities that exist on the under-developed mobile and interactive TV platforms. Approaching 3 million UK adults now gamble online, a quarter of them new gamblers, and contribute almost £1.5 billion to annual gambling industry revenues. Continued growth is not automatic though; these new gamblers are far more vulnerable than established ones to churn during the recession, and consumer fears about the dangers of betting and gaming online remain a significant barrier to expanding participation.
This report examines both the supply and demand sides of this still emerging market and assesses consumer attitudes towards online and interactive gambling as a guide to its future prospects. In so doing, it tests the hypothesis that “the online and interactive gambling market does not yet have the established player base to insulate it from the recession in the way the offline sector traditionally has been, but its potential for product, platform and penetration growth means it will continue to expand rapidly throughout the current crisis”.
Main issues
- Who gambles online?
- What platforms do consumers want to be able to gamble on?
- How popular are the main online gambling products?
- What impact is the recession having on consumers’ willingness to gamble?
- How can the industry tackle public concerns over risks of problem gambling?
- What brands do consumers favour when gambling online?
- How do our online gambling habits differ from our offline ones?
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