Gambling Commission - Industry statistics /10/11/12. Industry statistics. April 2009 to September 2012

Transcription

1 1 09/10/11/12 Industry statistics April 2009 to September 2012

2 2 Contents Gambling industry data 4 Betting 11 Bingo 23 Casinos 30 Gaming machines, including arcades 39 Lotteries 45 Remote betting, bingo and casino 48 Appendix 1 - Regulatory returns analysis 55 Appendix 2 - Terminology 57 Appendix 3 - Gaming machine categorisation 59

3 3 Preface 1. These detailed statistics relating to the gambling industry in Great Britain have been collated by the Gambling Commission (the Commission). The sources are: regulatory returns required to be submitted by all licensed operators other information provided by operators through annual reports and correspondence with the Commission information provided by regulatory partners and by a commercial provider 1 2. This report provides statistics covering the following periods: 1 April March April March April March October September More recent data (up to 31 March 2013) is also included where available. 4. Figures are either representative of the position at the end of the year concerned or reflect an average of values for dates falling within each 12 month period; whichever is the case is clearly stated. 5. All regulatory returns due for the periods 1 April March 2010 and 1 April March 2011 should have been submitted. Accordingly those figures are correct as of the date of publication, although may be subject to further change arising from the receipt of overdue returns or identification of errors made in submissions. As a result it is not uncommon to see published figures differ across publications for the same time period. The figures provided for 1 April March 2012 and 1 October 2011 to 30 September 2012 are provisional, and therefore subject to amendment within future industry statistics publications, because: a) not all returns for the period are yet due for submission. b) in some instances, estimations have been necessary 2. c) some returns are subject to outstanding queries with operators. 6. The Commission s methodology for providing annualised figures based on operators returns is included in Appendix The information contained in this document covers domestic British gambling markets (betting, bingo, casinos, arcades, gaming machines, lotteries) and remote gambling. It does not cover the National Lottery or spread betting, as those activities are not regulated by the Commission. 8. The terminology used in this document is explained in Appendix Totals and percentages are calculated from unrounded figures. 10. Further statistics and information relating to the Commission and its activities are available on our website in the annual reports and licensing authority statistics publications sections. 1 Licensing authorities and H2 Gambling Capital. 2 See Appendix 1 for method of calculating estimations.

4 4 Gambling industry data

5 5 Gambling industry data Introduction Market size During the period October 2011 to September 2012, the British gambling industry, as regulated by the Commission, generated a gross gambling yield (GGY - see appendix 2) of 6.2 billion. The non-remote betting sector represents the largest market within the industry with a 50% share, followed by the casino sector (15%) and the British regulated remote sector (13%). However, most British consumer remote gambling activity is on websites regulated overseas. Growth was seen across all sectors between April 2011-March 2012 and October 2011-September 2012 with the exception of arcades which reported a reduction in GGY. Figure 1: Market share by GGY October 2011 to September 2012 Table 1: GGY comparisons across all gambling sectors Sector Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Non-remote sector 4, , , , Arcades Betting 2, , , , Bingo Casinos Remote betting, bingo and casino gambling Lotteries (remote and non-remote) Total 5, , , , As regulated by the Commission.

6 6 Category B1, B2 and B3 machine numbers (see Appendix 3 for information on machine categories) have remained fairly static across the four periods. Category B4 and C machines have declined across the four periods whilst category D machines have seen large growth since April 2011-March The large increase in category D machines is accounted for by the reporting of handheld bingo terminals by a small number of operators. The total GGY generated by gaming machines across all gambling sectors showed growth in each of the reported periods. B2 category machines generated 67% of the total machines GGY in the period October 2011-September 2012 up from 66% in the period April 2011-March 2012, 64% in the period April 2010-March 2011 and 59% in the period April 2009-March Table 2: Average gaming machine numbers across all gambling sectors Machine category Average number of machines Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 B1 2,499 2,603 2,788 2,768 B2 33,706 32,848 33,239 33,397 B3 13,069 12,682 13,205 12,644 B C 52,738 49,183 45,232 45,214 D 47,384 49,713 63,373 64,657 Total 149, , , ,892 Table 3: Gaming machine GGY across all gambling sectors Gross gambling yield Machine category Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 B B2 1, , , , B B C D Aggregated categories Total 1, , , , As the Commission does not license pubs, clubs, working men s clubs or family entertainment centre s (FECs) operating under a local authority permit, we do not collect regulatory returns for those businesses. Table 2 and table 3 do not, therefore, represent activity in those sectors. 4 Where GGY figures have been provided but not broken down by machine category. The overall decrease can be attributed to operators creating better systems to record GGY by category of machine.

7 7 The number of people working in the industry has remained static in betting, bingo and to a certain extent casino. Arcades and remote headcount numbers have declined across the four periods but this is in part due to the clarification given to a number of operators in these sectors on the classification of staff directly associated with remote gambling activities. Table 4: Number of employees across all gambling sectors 5 Sector Number of employees Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Betting 55,695 54,012 54,587 54,858 Bingo 16,774 17,774 16,277 16,060 Casino 13,264 13,439 14,323 14,667 Arcades 6 18,289 18,036 11,266 10,767 Gaming Machine Technical 7,467 7,548 6,964 6,125 Lotteries (ELM) Remote (FTE only) 7 7,496 6,084 5,421 4,765 Total 119, , , ,034 5 Full time and part time employees are included in these figures. 6 The decrease in arcades employee numbers for is in part due to the clarification given to motorway service area operators on the classification of staff directly associated with gambling activities. For previous years, some motorway service area operators had reported all staff on site as AGC employees even if they had no contact with the AGC. 7 The decrease in remote employee for March 2011 and 2012 compared to the numbers in the last report is in part due to the clarification given to operators on the classification of staff directly associated with gambling activities.

8 8 Gambling participation and problem gambling prevalence New approach to the collection of gambling participation and problem gambling prevalence In 2010 and 2011 the Commission undertook a comprehensive review of the way in which we gather adult gambling prevalence data, and sought stakeholder views on a range of options for future data gathering. During this review the grant-in-aid budget, which had previously been used to pay for the British Gambling Prevalence Survey (BGPS), was withdrawn. Following the conclusion of the Commission s review and consultation, we have moved to an approach where problem gambling prevalence is being measured via the inclusion of gambling questions in wider health surveys (the Health Survey for England and the Scottish Health Survey). The Commission continues to monitor gambling participation on a more regular basis through the inclusion of revised questions in omnibus surveys. This single, new set of questions will replace the omnibus questions presented below. This new data series was first reported on in January 2013, covering the year to December 2012, and will continue to be published on a quarterly basis 8. The British Gambling Prevalence Surveys can be accessed via the Commission s website. Participation in gambling activities (omnibus survey results) The Commission has been using a quota sample omnibus survey to provide information on participation in gambling activities for a number of years. Until the end of 2012 we commissioned two separate but complementary sets of questions in telephone omnibus surveys (conducted by ICM Research); one measuring participation in all types of gambling, and one which monitors participation solely in remote gambling. The data is published each quarter, based on a rolling sample of interviews conducted over the previous year. As the omnibus surveys ask whether respondents have gambled in the past four weeks, the results obtained are broadly comparable with those of the BGPS 2007 and BGPS 2010 which look at respondents gambling in the past week and past year. Participation in all gambling activities In the year to September 2012, 56.9% of the 4,000 adults surveyed said they had participated in at least one form of gambling in the previous four weeks. This figure of 56.9% compares with 58.1% in the year to March 2012, 56.2% in the year to March 2011and 54.7% in the year to March Table 5: Proportion of respondents participating in at least one form of gambling in the past four weeks (survey data on gambling participation) Gambling participation Year to March 2010 Year to March 2011 Year to March 2012 Year to Sept 2012 All respondents 54.7% 56.2% 58.1% 56.9% In the year to September 2012, the most popular gambling activity was National Lottery tickets (47.5% of respondents), followed by National Lottery scratch cards (12.7%) and tickets for society or other good cause lotteries (9.7%). Betting on horse races, gambling on fruit or slot machines, and private betting, playing cards/games for money with family, friends or colleagues were the next most popular activities (3.8%, 2.9%, 2.7% respectively). 8 The latest information is available on our website by clicking this link Gambling Commission - Omnibus survey data.

9 9 Table 6: Proportion of respondents gambling in the past four weeks by type of gambling activity (selected activities) (survey data on gambling participation) Gambling activity (selected) Year to March 2010 Year to March 2011 Year to March 2012 Year to Sept 2012 National Lottery tickets 45.4% 46.0% 48.0% 47.5% National Lottery products only (not participating in any other gambling activity) 32.0% 32.1% 33.0% 34.4% National Lottery scratch cards 10.5% 10.3% 13.0% 12.7% Tickets for society or other good cause lotteries 9.9% 11.4% 10.6% 9.7% Betting on horse races or virtual horse races with a bookmaker (does not include online) 3.5% 4.0% 4.3% 3.8% Fruit or slot machines 3.1% 3.0% 3.4% 2.9% Private betting, playing cards/ games for money with family, friends or colleagues 3.3% 2.7% 3.3% 2.7% Participation in remote gambling In the year to September 2012, 12.4% of the 4,000 adults surveyed said they had participated in at least one form of remote gambling in the previous four weeks. Around half of these had participated just in National Lottery products. This figure of 12.4% compares with 12.2% in the year to March 2012, 11.2% in the year to March 2011 and 10.7% in the year to March Table 7: Proportion of respondents participating in at least one form of remote gambling in the past four weeks (survey data on gambling participation) Gambling participation Year to March 2010 Year to March 2011 Year to March 2012 Year to Sept 2012 All respondents 10.7% 11.2% 12.2% 12.4% The growth in participation in remote gambling between the year to March 2010 and the year to September 2012 is a consequence of increased online participation in the National Lottery. If those only playing National Lottery products remotely are excluded 5.5% of respondents had participated in remote gambling in the year to September 2012, compared with 5.4% in the year to March 2012, 5.9% in the year to March 2011 and 5.7% in the year to March Table 8: Proportion of respondents participating in remote gambling in the past four weeks, excluding those only playing National Lottery products (survey data on gambling participation) All methods of remote gambling Year to March 2010 Year to March 2011 Year to March 2012 Year to Sept 2012 Those participating in at least one form of remote gambling (excluding those only playing National Lottery products) as a percentage of all respondents 5.7% 5.9% 5.4% 5.5%

10 10 Overall, in the year to September 2012, 10.3% of respondents said they had purchased tickets remotely for the National Lottery draw in the previous four weeks (either exclusively or in addition to other types of gambling activity). Remote gambling via a computer, laptop or handheld device was most popular (11.2% of all respondents), followed by gambling via WAP 9 /internet or text on a mobile phone (3.4%) and interactive/digital TV (0.9%). Table 9: Proportion of respondents gambling using different remote methods in the past four weeks (survey data on gambling participation) Methods of remote gambling Year to March 2010 Year to March 2011 Year to March 2012 Year to Sept 2012 Internet through a PC, laptop or handheld device 9.4% 9.8% 11.0% 11.2% WAP/internet or text (SMS) on a mobile phone 2.8% 3.1% 2.5% 3.4% Interactive/digital TV 1.7% 1.4% 1.0% 0.9% 9 wireless application protocol

11 11 Betting

12 12 Betting Structure of the non-remote betting industry The non-remote betting industry is made up of both on-course and off-course betting operators. As of 31 March 2013, there were 403 licences held by operators for the activity non-remote general betting standard (off-course). This is a decrease of 15 licences from September There were 591 licences for the activity non-remote general betting limited (on-course), a decrease of 23 licences from September The betting industry in Great Britain is dominated by four operators and, as of 31 March 2013, their estates accounted for 85% of all betting shops. At 30 September 2012 their estates accounted for 84% of all betting shops. The number of betting shops was as follows: Table 10: Number of premises by operator Organisation Total betting shops at 31 Mar 2009 at 31 Mar 2010 at 31 Mar 2011 at 31 Mar 2012 at 31 Mar 2013 William Hill 2,228 2,263 2,350 2,320 2,347 Ladbrokes 2,080 2,073 2,097 2,131 2,227 Gala Coral Group 1,630 1,645 1,712 1,725 1,769 Betfred Tote ,345 1,369 Other operators Approx 1,600 Approx 1, , ,607 1,400 Total Approx 8,862 Approx 8,822 9,067 9,128 9,112 The figures in table 10 column at 31 March 2013 are taken from each operator s most recent regulatory return. This is a change from our previous data collection methodology which was based on notifications from licensing authorities. This new approach, which relies solely on operators for information on their premises, provides us with the most robust premises information to date. General information about the betting industry Employees Table 11: Betting sector employees Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Number of employees 55,695 54,012 54,587 54, The Tote has now been purchased by Betfred. 11 The 2011 & 2012 figures are an estimate based on notifications received from licensing authorities.

13 13 Off-course betting The turnover figures for off-course betting have remained fairly static across the four periods. The Other category captures all betting activity outside those listed in the table. This includes sporting activity and non-sporting activity. Table 12: Off-course betting turnover Type Apr 2009-Mar 2010 Apr 2010-Mar 2011 Turnover Apr 2011-Mar 2012 Oct 2011-Sep 2012 Dogs 1, , , , Football , , , Horses 5, , , , Numbers Other Total 9, , , , Figure 2: Off-course betting turnover 6,000 5,000 Millions 4,000 3,000 2,000 1,000 Dogs Football Horses Numbers Other 0 Apr Mar 2010 Apr Mar 2011 Apr Mar 2012 Oct Sep 2012

14 14 The overall GGY figures for off-course betting have fluctuated across the four periods, rising in April 2010-March 2011, falling in April 2011-March 2012 and rising again in the period October 2011-September Table 13: Off-course betting GGY Type Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Dogs Football Horses Numbers Other Total 1, , , , Figure 3: Off-course GGY Millions Dogs Football Horses Numbers Other Apr Mar 2010 Apr Mar 2011 Apr Mar 2012 Oct Sep 2012

15 15 On-course betting The overall turnover figures for on-course betting have decreased each year across the four periods. Dogs and Horses declined in each year across the four periods, falling in total by 9.96m and 42.62m respectively, between April 2009-March 2010 and October 2011-September Table 14: On-course betting turnover Type Apr 2009-Mar 2010 Apr 2010-Mar 2011 Turnover Apr 2011-Mar 2012 Oct 2011-Sep 2012 Dogs Horses Other Total Figure 4: On-course betting turnover Millions Dogs Horses Other 50 0 Apr Mar 2010 Apr Mar 2011 Apr Mar 2012 Oct Sep 2012

16 16 The GGY figures for on-course betting on dogs and horses decreased each year across the four periods. Other increased each year until the October 2011-September 2012 period which saw a decrease from 5.45m to 4.74m. Table 15: On-course betting GGY Type Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Dogs Horses Other Total Figure 5: On-course betting GGY Millions Dogs Horses Other 5 0 Apr Mar 2010 Apr Mar 2011 Apr Mar 2012 Oct Sep 2012

17 17 Pool betting The October 2011-September 2012 turnover figures for pool betting indicate the beginnings of a potential decline (falling from m in April 2011-March 2012 to m in October 2011-September 2012) following increases in overall turnover in previous years. The figures for horses accounts for the majority of this decline falling from m in April 2011-March 2012 to m in October 2011-September Table 16: Pool betting turnover Type Apr 2009-Mar 2010 Apr 2010-Mar 2011 Turnover Apr 2011-Mar 2012 Oct 2011-Sep 2012 Dogs Football Horses Other Total Figure 6: Pool betting turnover Millions Dogs Football Horses Other 50 0 Apr Mar 2010 Apr Mar 2011 Apr Mar 2012 Oct Sep 2012

18 18 The GGY figures for pool betting have remained fairly static across the four periods, although the latest numbers indicate a potential decline after two years of previous growth. Table 17: Pool betting GGY Type Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Dogs Football Horses Other Total Figure 7: Pool betting GGY Millions Dogs Football Horses Apr Mar 2010 Apr Mar 2011 Apr Mar 2012 Oct Sep 2012 Other

19 19 Gaming machines in betting shops During the period October 2011 to September 2012, the number of gaming machines in betting shops accounted for 21% (21% in April 2011-March 2012) of the total number of machines across all licensed gambling sectors. The GGY from B2 machines in betting shops accounted for 67% (67% in April 2011-March 2012) of machine GGY across all machine types and gambling sectors in the period October 2011 to September Table 18: Average 12 gaming machine numbers Machine category Average number of gaming machines and terminals Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 B2 33,633 32,818 33,183 33,319 B B C D Total 34,542 33,234 33,442 33,519 Table 19: Gaming machine GGY Machine category Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 B2 1, , , , B B C D Aggregated categories Total 1, , , , In submitting regulatory return information for a machine or a terminal that offers games that equate to different machine categories, operators are required to submit information based on the highest category of game available. For example, if a terminal offers category B2 and B3 games, operators are advised to count this as a category B2 terminal. For this reason, the B2 and B3 figures in table 18 and table 19 should be viewed with caution as the split between B2 and B3 game play is not clear. 12 Gaming machine numbers fluctuate during the year and as such operators are required to provide their average number of machines 13 Where GGY figures have been provided but not broken down by machine category. The overall decrease can be attributed to operators creating better systems to record GGY by category of machine.

20 20 Overall betting sector GGY has increased during each period. Over the counter betting in October 2011-September 2012 is up from the previous period, but this latest figure is still lower than figures reported in April 2009-March 2010 and April 2010-March GGY from machines has grown in each period, rising from 1.18bn to 1.52bn across the four periods. Table 20: Off-course betting sector breakdown of GGY Revenue stream Apr 2009-Mar 2010 Apr 2010-Mar 2011 Gross gambling yield Apr 2011-Mar 2012 Oct 2011-Sep 2012 Over the counter (OTC) 1, , , , Machines 1, , , , Total 2, , , Figure 8: Off-course betting sector breakdown of GGY Millions Over the counter (OTC) Machines Apr Mar 2010 Apr Mar 2011 Apr Mar 2012 Oct Sep 2012

21 21 Self exclusions recorded by operators There is a slight increase in the number of new self exclusions, breaches of self exclusions and individuals who cancelled their self exclusion after the minimum period allowed. The number of people who have self excluded and the number of people who have cancelled their self exclusion may be lower than these figures as individuals may have self excluded from more than one venue or operator and therefore been counted more than once. The number of breaches represents the number of separate incidents, rather than the number of individuals. Table 21: Betting sector self exclusions Self exclusions Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Self exclusions 16,312 20,920 20,232 21,034 Known breaches of self exclusion 8,389 10,509 11,070 12,837 Number of individuals who cancelled their self exclusion after minimum exclusion period 1,867 2,765 2,701 2,806 Gambling where individuals were unable to prove their age As of October 2011, the question challenged when attempting to gamble but unable to prove age and the guidance issued in association with this question changed to challenged having gambled and unable to prove age. Table 22: Betting sector underage challenges Underage challenges Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Challenged upon entry but unable to prove age 521, , , ,072 Challenged when attempting to gamble but unable to prove age 70,282 90,384 Challenged having gambled but unable to prove age 34,599 24,169

22 22 Integrity in betting The Sports Betting Intelligence Unit (SBIU) is responsible for ensuring betting is fair and safe for all. 93 cases of suspicious betting activity have been reported to the Commission between 1 April 2012 and 31 March 2013 (including 50 cases between 1 October 2012 and 31 March 2013). 48 of the 93 cases were reported by betting operators under licence condition 15.1 in the first instance with 45 coming from sports governing bodies or other sources such as the media and the public. All intelligence received is logged, and assessed before deciding how to proceed. To determine if an investigation will be launched, the Commission carry out preliminary checks to establish: If the information is linked to previous intelligence If the event/betting activity took place within the SBIU s jurisdiction, or If the matter will be more appropriately dealt with by sports governing bodies, police and other regulators at home or overseas. Out of the 93 cases received 49 have been closed where the information has been referred to external agencies or where the commission was unable to substantiate suspicions. Of the remainder, as of 31 March 2013, 44 cases are actively being assessed by the Commission. Table 23: Closed SBIU cases 1 October 2011 to 31 March Activity Cases closed 1 Oct 2011 to 31 Mar 2012 Cases closed 1 Apr 2012 to 30 Sep 2012 Cases closed 1 Oct 2012 to 31 Mar 2013 Badminton 1 Basketball 1 Boxing 2 Cricket Darts 1 2 Football Greyhounds Horseracing Rugby League 1 Snooker Specials - TV/Awards 1 1 Table Tennis 1 Tennis Total The Commission does not disclose information on open cases due to the sensitive nature of enquiries. 14 Closed cases may subsequently be re-opened or merged with other cases as new information comes to light. Accordingly numbers (including closed cases) may vary between publications.

23 23 Bingo

24 24 Bingo Structure of the non-remote bingo industry As of 31 March 2013, 208 operators held non-remote bingo licences. The sector is broken down as follows: Table 24: Number of premises by operator Organisation Total premises at 31 March 2013 Gala Coral Group 140 Rank Group - Mecca Bingo Ltd 97 Cashino Gaming Limited 37 Park Holidays UK Limited 23 Thomas Estates Limited 23 Top Ten Bingo 19 Luxury Leisure 14 Independent/small operators 324 Total 677 The figures in table 24 are taken from each operator s most recent regulatory return (up to 31 March 2013). This is a change from our previous data collection methodology which was based on notifications from licensing authorities. This new approach, which relies solely on operators for information on their premises, provides us with the most robust premises information to date. Although only a single licence type, the bingo industry is made up of various types of businesses including large bingo clubs, holiday parks, working men s clubs and smaller high street venues. In this publication these venues are only included where they hold a premises licence authorising bingo. General information about the bingo industry Employees Table 25: Bingo sector employees Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Number of employees 16,774 17,774 16,277 16,060

25 25 Bingo turnover Following an overall decrease in turnover between April 2010-March 2011 and April 2011-March 2012, figures for the period October 2011-September 2012 highlight an increase in turnover against each bingo game with the overall turnover figure increasing by almost 37m, rising from 1,239.47m to 1,276.07m. Table 26: Bingo turnover Game type Apr 2009-Mar 2010 Apr 2010-Mar 2011 Turnover Apr 2011-Mar 2012 Oct 2011-Sep 2012 Main stage bingo Mechanised cash bingo Prize bingo Total 1, , , , Figure 9: Bingo turnover Millions Main stage bingo Mechanised cash bingo Prize bingo Apr Mar 2010 Apr Mar 2011 Apr Mar 2012 Oct Sep 2012

26 26 The GGY figures for each bingo game have increased during the latest period. The overall GGY for bingo has risen from m in the period April 2011-March 2012 to m in the period October 2011-September Table 27: Bingo GGY (participation fees) Game type Apr 2009-Mar 2010 Apr 2010-Mar 2011 Gross gambling yield Apr 2011-Mar 2012 Oct 2011-Sep 2012 Main stage bingo Mechanised cash bingo Prize bingo Total Figure 10: Bingo GGY Millions Main stage bingo Mechanised cash bingo Prize bingo 50 0 Apr Mar 2010 Apr Mar 2011 Apr Mar 2012 Oct Sep 2012

27 27 Gaming machines in bingo clubs In the period October 2011 to September 2012, the number of gaming machines in bingo clubs accounted for 27% (25% in April 2011-March 2012) of the total number of machines across all gambling sectors. Gaming machine GGY in bingo halls accounted for 13% (12% in April 2011-March 2012) of gaming machine GGY across all sectors. The GGY from category C machines in bingo halls accounted for 53% (47% in April 2011-March 2012) of category C machine GGY across all gambling sectors in the period October 2011 to September Table 28: Average gaming machine numbers Machine category Average number of gaming machines and terminals Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 B3 3,158 3,772 4,612 4,233 B C 12,911 14,777 16,322 18,095 D 1,672 5,006 17,773 20,621 Total 18,069 23,795 38,887 43,080 The large increase in category D machines is accounted for by the reporting of handheld bingo terminals in this category by a small number of providers. Table 29: Gaming machine GGY Machine category Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 B B C D Aggregated categories Total Where GGY figures have been provided but not broken down by machine category.

28 28 GGY overall has increased by 89.06m since April 2009-March Of that, 77.95m was generated through machines play and 11.11m generated through bingo games. Between April 2009-March 2010 bingo game revenue accounted for 67% of total revenue. Between October 2011-September 2012 bingo game revenue accounted for 60% of total revenue. Table 30: Bingo sector breakdown of GGY Revenue stream Apr 2009-Mar 2010 Apr 2010-Mar 2011 Gross gambling yield Apr 2011-Mar 2012 Oct 2011-Sep 2012 Participation fee Gaming machines Total Figure 11: Bingo sector breakdown of GGY Millions Participation fee Gaming machines Apr Mar 2010 Apr Mar 2011 Apr Mar 2012 Oct Sep 2012

29 29 Self exclusions recorded by operators There is a year-by-year incline in the number of new self exclusions reported across the four periods. The number of people who have self excluded and the number of people who have cancelled their self exclusion may be lower than these figures as individuals may have self excluded from more than one venue or operator and thus been counted more than once. The number of breaches represents the number of separate incidents, rather than the number of individuals. Table 31: Bingo sector self exclusions Self exclusions Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Self exclusions Known breaches of self exclusion Number of individuals who cancelled their self exclusion after minimum exclusion period Gambling where individuals were unable to prove their age As of October 2011, the questions challenged upon entry but unable to prove age and challenged when attempting to gamble but unable to prove age were removed from the regulatory return. They were replaced by the single question challenged having gambled and unable to prove age. Table 32: Bingo sector age challenges Underage challenges Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Challenged upon entry but unable to prove age Challenged when attempting to gamble but unable to prove age Challenged having gambled and unable to prove age This question was removed in October Children and young people under 18 are allowed to enter licensed commercial bingo clubs but they must not take part in playing bingo or any other forms of gambling whilst on the premises. If a bingo club has category B or C gaming machines these must be separated from areas under 18s are allowed to enter. Although the law does not prevent under 18s from entering bingo clubs, the industry generally chooses to apply a no under 18s policy. 17 It is illegal for anyone under the age of 18 to gamble on a bingo premises.

30 30 Casinos

31 31 Casino Casinos and the Act 2005 Act casinos Under Section 175(4) of the Gambling Act 2005 (the Act), 16 local council (licensing authority) areas were determined as potential locations for casinos: One large casino is permitted to be licensed in Great Yarmouth, Kingston- upon- Hull, Leeds, Middlesbrough, Milton Keynes, Newham, Solihull and Southampton. One small casino can be permitted to be licensed in Bath and North East Somerset, Dumfries and Galloway, East Lindsey, Luton, Scarborough, Swansea, Torbay and Wolverhampton. As of 31 March 2013 only one large casino had opened under the 2005 Act - Aspers (Stratford City) Ltd, Newham Act casinos - licences not operational as of 31 March 2013 At 30 September 2012, there were Act casino premises licences available, comprising 144 casinos operating, 22 casinos licensed but subsequently closed and 20 licensed but not yet operating. Of these three were replacement licences. Three casinos which specialise in card room activities are included in the total. Structure of the non-remote casino industry There were 144 casinos operating at 31 March Three companies own the majority of casinos in the industry, namely Genting UK (Genting Casinos/Clubs) with 42 casinos, the Rank Group (Grosvenor Casinos and G Casinos) with 37 casinos and the Gala Coral Group (Gala Casinos) with 27 casinos. As of 31 March 2013, six 2005 Act casino operating licences were held by operators and 11 of the 16 local authorities permitted to issue 2005 Act casino premises licences had begun their competition processes (seven large and four small). Table 33: Number of premises by operator Organisation Total casinos at 31 Mar 2010 Total casinos at 31 Mar 2011 Total casinos Total casinos at 31 Mar 2012 Total casinos at 31 Mar 2013 Genting UK (Genting Casinos/Clubs) Rank Group (Grosvenor and G Casinos) Gala Coral Group (Gala Casinos) London Clubs International Other operators Total Employees Table 34: Casino sector employees Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Number of employees 13,264 13,439 14,323 14,667

32 32 Figure 12: Casino locations in Great Britain 30 September 2012 The size of the dots is relative to the number of casinos in an area. The range provided in the legend is indicative. For example, a city with six casinos will be represented with a dot six times the size of the dot for one casino.

33 33 Casino attendance Casino attendance has remained fairly static across all the regions with the exception of Other London. Other London (London-based casinos not including the high end casinos) has seen the biggest growth in customer numbers, increasing from 3.58 million in April 2009-March 2010 to 4.67 million in October 2011-September Table 35: Casino attendance Number of casinos and number of customers Region Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Casinos Customers Casinos Customers Casinos Customers Casinos Customers Scotland m m m m North m m m m Midlands & Wales m m m m South m m m m London high end m m m m Other London m m m m Total m m m m Average industry table numbers The overall average industry table numbers have remained fairly static across the four periods. Casino Stud Poker has been in decline for a number of years and no longer features at many casinos. Table 36: Average industry table numbers Game Tables Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep Card Poker American Roulette Blackjack Casino Stud Poker Dice Electronic Gaming 19 3,665 3,607 3,924 4,026 Punto Banco Other Total 5,739 5,692 5,962 5, Casinos referred to as London high end comprise six casinos agreed with the industry, which have a distinctive pattern of low volume, high value gaming. 19 this row shows player positions and not tables. 20 includes new games and less common games such as Big 6, Pai Gow Tiles and Two Up.

34 34 Drop and win The overall casino drop between April 2009-March 2010 and October 2011-September 2012 has increased by over 1.64bn, rising from 4.27bn to 5.91bn. Punto Banco saw large growth during this period, reflecting its increased popularity with high value players. Between April 2011-March 2012 and October 2011-September 2012 growth of m was recorded against Punto Banco alone. Table 37: Total drop by game Game Apr 2009-Mar 2010 Apr 2010-Mar 2011 Drop Apr 2011-Mar 2012 Oct 2011-Sep Card Poker American Roulette 2, , , , Blackjack Casino Stud Poker Dice Electronic Gaming Punto Banco , Other Total 4, , , , Figure 13: Casino sector breakdown of drop 3,000 2,500 Millions 2,000 1,500 1, Card Poker American Roulette Blackjack Casino Stud Poker Dice Electronic Gaming Punto Banco Other 0 Apr Mar 2010 Apr Mar 2011 Apr Mar 2012 Oct Sep 2012

35 35 The overall casino win between April 2009-March 2010 and October 2011-September 2012 has increased in each period and by 166m overall, rising from m to m. Between April 2011-March 2012 and October 2011-September 2012 growth of 27.12m was recorded against Punto Banco alone. Table 38: Casino win by game Game Apr 2009-Mar 2010 Apr 2010-Mar 2011 Win Apr 2011-Mar 2012 Oct 2011-Sep Card Poker American Roulette Blackjack Casino Stud Poker Dice Electronic Gaming Punto Banco Other Total Figure 14: Casino sector breakdown of win Millions Card Poker American Roulette Blackjack Casino Stud Poker Dice Electronic Gaming Punto Banco Other 0 Apr Mar 2010 Apr Mar 2011 Apr Mar 2012 Oct Sep 2012

36 36 Gaming machines in casinos During the period October 2011 to September 2012, the number of gaming machines in casinos accounted for 2% (2% in April 2011-March 2012) of the total number of machines across all gambling sectors. Gaming machine GGY in casinos accounted for 6% (6% in April 2011-March 2012) of gaming machine GGY across all sectors. Overall gaming machine numbers stayed the same between April 2011-March 2012 and October 2011-September B1 machines declined slightly during this period whilst B2 machines increased, although Category B1 machines continue to predominate. Table 39: Average gaming machine numbers Machine category Number of machines and terminals Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 B1 2,499 2,603 2,788 2,768 B B Total 2,548 2,637 2,855 2,855 Overall gaming machine GGY between April 2011-March 2012 and October 2011-September 2012 increased by 4.97m rising from m to m. Table 40: Gaming machine GGY Machine category Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 B B B Aggregated categories Total Where GGY figures have been provided but not broken down by machine category.

37 37 For the year April March 2012 gaming machine GGY accounted for 15% of total casino GGY. For the year October September 2012 gaming machine GGY accounted for 14% of total casino GGY. Table 41: Total casino GGY Revenue stream Apr 2009-Mar 2010 Apr 2010-Mar 2011 Gross gambling yield Apr 2011-Mar 2012 Oct 2011-Sep 2012 Casino games Machines Total Figure 15: Casino GGY Millions Casino games Machines Apr Mar 2010 Apr Mar 2011 Apr Mar 2012 Oct Sep 2012

38 38 Self exclusions recorded by operators Table 42: Casino sector self exclusions Self exclusions Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Self exclusions 6,225 6,684 7,434 7,543 Known breaches of self exclusion ,001 1,078 Number of individuals who cancelled their self exclusion after minimum exclusion period 1,326 1,448 1,480 1,664 There is a slight incline in the number of new self exclusions, breaches of self exclusions and individuals who cancelled their self exclusion after the minimum period allowed between April 2011-March 2012 and October 2011-September The number of people who have self excluded and the number of people who have cancelled their self-exclusion may be lower than these figures as individuals may have self excluded from more than one venue or operator and thus been counted more than once. The number of breaches represents the number of separate incidents, rather than the number of individuals. Gambling where individuals were unable to prove their age As of October 2011, the question challenged when attempting to gamble but unable to prove age and the guidance issued in association with this question changed to challenged having gambled and unable to prove age. Table 43: Casino sector age challenges Underage challenges Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 Challenged upon entry but unable to prove age Challenged when attempting to gamble but unable to prove age Challenged having gambled but unable to prove age 33 42

39 39 Gaming machines, including arcades

40 40 Gaming machines, including arcades Structure of the gaming machine and arcade industry As at 30 September 2012 there were 535 Adult Gaming Centre (AGC) licences and 192 Family Entertainment Centre (FEC) licences held by 587 operators. There were 99 licences to manufacture gaming machines or gaming machine software and 491 gaming machine supplier licences held under either the 2005 Act or Section 27 of the 1968 Act. Table 44: Number of arcade premises Arcade type Number of premises as of 31 March 2013 Adult Gaming Centre (AGC) 1,698 Family Entertainment Centre (FEC) The figures in table 44 are taken from each operator s most recent regulatory return (up to 31 March 2013). This is a change from our previous data collection methodology which was based on notifications from licensing authorities. This new approach, which relies solely on operators for information on their premises, provides us with the most robust premises information to date. This has resulted in a figure for the total number of FEC premises that is significantly higher than in the previous year. This does not necessarily indicate a trend and care should be exercised in relating this figure to previous years. Table 45: Number of licences - gaming machine manufacturers, suppliers, AGCs and FECs Licensed activity 23 at 31 Mar 2010 at 31 Mar 2011 at 31 Mar 2012 at 31 Mar Act Section 27 certificate holders Machine suppliers Machine manufacturers Act Machine software manufacturers/suppliers Adult Gaming Centre (AGC) Family Entertainment Centre (FEC) Total 1,545 1,434 1,354 1, Figure 16: Number of licensed activities at 31 Mar at 31 Mar 2011 at 31 Mar 2012 at 31 Mar 2013 at 31 Mar 2010 at 31 Mar 2011 at 31 Mar 2012 at 31 Mar Act Section 27 certificate holders 1968 Act Section 27 certificate holders 2005 Act Machine suppliers 2005 Act Machine suppliers 2005 Act 2005 Machine Act Machine manufacturers manufacturers 2005 Act 2005 Machine Act Machine software software manufacturers/suppliers manufacturers/suppliers 2005 Act Adult Gaming Centre (AGC) 2005 Act Adult Gaming Centre (AGC) 2005 Act Family Entertainment Centre (FEC) 2005 Act Family Entertainment Centre (FEC) 22 Will only include those FECs licensed by the Commission, excludes those requiring local licensing authority permits. 23 See appendix 2 for definition. 24 Section 27 certificate holders must either apply for an operating licence under the 2005 Act or cease trading when their certificate expires.

41 41 Gaming machine manufacturers The primary business of machine manufacturers is the design and manufacture of machines and new game concepts for machines in categories B-D. Larger manufacturers for the year to 31 March 2013 are: Astra Novomatic Global Draw/Barcrest (part of the SG Gaming Group) Bell Fruit (Danoptra) Bell Fruit are now part of the Astra/Novomatic group (as of September 2011), but are separated here for this date period. Gaming machine suppliers The primary business of machine suppliers is the supply and maintenance of gaming machines on behalf of the operator, usually on a rental basis. Larger suppliers for the year to 31 March 2013 are: AMG Leisure Limited Claremont Automatics Ltd Crown Leisure Limited Dransfield Novelty Company Ltd Gamestec Leisure Limited Global Draw (SG Gaming) Inspired Gaming (UK) Limited JNC Enterprises Limited RLMS Sales Limited Sceptre Leisure Solutions Limited Wessex Coin Ltd General information about the gaming machine and arcade industries Number of employees Table 46: Gaming machine sector employees Licensed Activity Number of employees Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 AGC 25 14,860 15,066 8,829 8,506 FEC 26 3,429 2,970 2,437 2,261 Gaming machine technical 7,467 7,548 6,964 6,125 Totals 25,756 25,584 18,230 16, The decrease in arcades employee numbers is in part due to the clarification given to motorway service area operators on the classification of staff directly associated with gambling activities. For previous years, some motorway service area operators had reported all staff on site as AGC employees even if they had no contact with the AGC. 26 Will only include those FECs licensed by the Commission, excludes those requiring only a permit from local licensing authorities.

42 42 Gaming machines in AGCs and FECs In the period October 2011 to September 2012, the number of gaming machines in AGCs accounted for 32% (33% in April 2011-March 2012) of the total number of machines across all gambling sectors. Gaming machine GGY in AGCs accounted for 12% (13% in April 2011-March 2012) of gaming machine GGY across all sectors and has been on a declining trend, year-on-year, over the four periods displayed. Table 47: Average AGC machine numbers Machine category Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 B3 9,399 8,688 8,441 8,325 B C 35,994 30,967 26,402 24,736 D 18,913 18,600 17,670 17,220 Total 64,476 58,453 52,576 50,323 Table 48: AGC machine GGY Machine category Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 B B C D Aggregated categories Total In the period October 2011 to September 2012, the number of gaming machines in FECs accounted for 18% (19% in April 2011-March 2012) of the total number of machines across all gambling sectors. Gaming machine GGY in FECs accounted for 3% (3% in April 2011-March 2012) of gaming machine GGY across all sectors. Table 49: Average licensed FEC machine numbers Machine category Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 C 3,460 3,258 2,422 2,311 D 26,785 26,098 27,918 26,804 Total 30,245 29,356 30,340 29,115 Table 50: Licensed FEC GGY Machine category Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Oct 2011-Sep 2012 C D Aggregated categories Total Where GGY figures have been provided but not broken down by machine category.