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

Transcription

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

2 2 Contents Section 1: Gambling industry data 4 Section 2: Betting 11 Section 3: Bingo 23 Section 4: Casinos 30 Section 5: Gaming machines, including arcades 39 Section 6: Lotteries 45 Section 7: Remote betting, bingo and casino 48 Appendix 1: Regulatory returns analysis 55 Appendix 2: Terminology Appendix 3: Gaming machine categorisation 57 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 information provided by trade bodies, regulatory partners and by a commercial provider 2. This report provides statistics covering the following periods: 1 April March April March April March More recent data (up to 30 September 2012) not sourced from regulatory returns 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 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 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 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.

4 4 Section 1: Gambling industry data

5 5 Introduction Market size During the period April 2011 to March 2012, the British gambling industry, as regulated by the Commission, generated a gross gambling yield (GGY - see appendix 2) of 5.8 billion, a rise of 0.2 billion from 2010/11. The non-remote betting sector represents the largest market within the industry with a 52% share, followed by the casino sector (15%) and the British regulated remote sector (12%). However, most British consumer remote gambling activity is on regulated overseas sites. The lotteries sector has seen the largest increase in GGY from 168.8m 2010/11 to 227.3m 2011/12, an increase of 35%. Growth was seen across all other sectors during the same period with the exception of Arcades which saw a decrease in GGY of 10%. This is a continuation of the trend observed yearon-year since 2009/10 and 2010/11. Figure 1: Market share by GGY April 2011 to March 2012 Arcades 6% Lotteries 4% Bingo 11% Remote 12% Betting 52% Table 1: GGY comparisons across all gambling sectors Sector Casinos 15% Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 Non-remote sector 4, , , % Arcades % Betting 2, , , % Bingo % Casinos % Remote betting, bingo and casino gambling % Lotteries (remote and non-remote) % Total 5, , , % 1 As regulated by the Commission.

6 6 Average gaming machine numbers and GGY for category B4 and C gaming machines (see Appendix 3 for information on machine categories) has declined between 2010/11 and 2011/12. B4 machine numbers have decreased by 37% during this period and GGY has decreased by 21%. Category C machine numbers have decreased by 27% during this period and GGY has decreased by 22%. The decrease in the total machine numbers can in part be explained by a decreasing trend in the arcades sector. Table 2: Average gaming machine numbers across all gambling sectors Machine category Average number of machines B1 2,499 2,540 2,656 5% B2 33,222 32,922 33,345 1% B3 14,990 14,844 13,482-9% B % C 56,793 52,253 38,371-27% D 50,296 52,724 52,376-1% Total 158, , ,516-10% 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 2 above and table 3 below should be viewed with caution as the true level of B3 game play is not clear. Table 3: Gaming machine GGY across all gambling sectors Machine category Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 B % B2 1, , , % B % B % C % D % Aggregated categories % 2 Where GGY figures have been provided but not broken down by machine category.

7 7 Headcount numbers have declined in bingo, arcades and gaming machine technical, whilst lotteries and remote sectors have reported large growth in numbers. Overall headcount numbers have decreased by 8% between 2010/11 and 2011/12. Table 4: Number of employees across all gambling sectors 3 Sector Head count Betting 57,319 54,129 54,449 1% Bingo 17,242 17,741 15,328-14% Casino 13,295 13,389 14,173 6% Arcades 18,290 18, ,192-40% Gaming Machine Technical 7,467 7,426 6,377-14% Lotteries (ELM) % Remote (FTE only) 7,295 6,978 7,204 3% Total 121, , ,666-8% 3 Includes full-time and part-time posts. 4 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.

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 will continue 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 will first be reported on in January 2013, covering the year to December The British Gambling Prevalence Survey 2010 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 March , 58.1% 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 58.1% compares with 56.2% in the year to March 2011, and 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 All respondents 54.7% 56.2% 58.1% In the year to March 2012, the most popular gambling activity was National Lottery tickets (48.0% of respondents), followed by National Lottery scratchcards (13.0%) and tickets for society or other good cause lotteries (10.6%). 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 (4.3%, 3.4%, 3.3% respectively). 5 The omnibus survey results are published quarterly. The latest and more detailed information is available on our website at www. gamblingcommission.gov.uk

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 National Lottery tickets 45.4% 46.0% 48.0% National Lottery products only (not participating in any other gambling activity) 32.0% 32.1% 33.0% National Lottery scratchcards 10.5% 10.3% 13.0% Tickets for society or other good cause lotteries 9.9% 11.4% 10.6% Betting on horse races or virtual horse races with a bookmaker (does not include online) 3.5% 4.0% 4.3% Fruit or slot machines 3.1% 3.0% 3.4% Private betting, playing cards/games for money with family, friends or colleagues 3.3% 2.7% 3.3% Participation in remote gambling In the year to March 2012, 12.2% 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 12.2% compares with 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 All respondents 10.7% 11.2% 12.2% The growth in participation in remote gambling between the year to March 2010 and the year to March 2012 is a consequence of increased online participation in the National Lottery. If those only playing National Lottery products remotely are excluded 5.6% of respondents had participated in remote gambling in the year to March 2012, compared with 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 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% Overall, in the year to March 2012,10.0% 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% of all respondents), followed by gambling via WAP/internet or text (SMS) on a mobile phone (2.5%) and interactive/digital TV (1.0%).

10 10 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 Internet through a PC, laptop or handheld device 9.4% 9.8% 11.0% WAP/internet or text (SMS) on a mobile phone 2.8% 3.1% 2.5% Interactive/digital TV 1.7% 1.4% 1.0%

11 11 Section 2: 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 30 September 2012, there were 418 licences held by operators for the activity non-remote general betting standard (off-course). This is a decrease of 41 licences from March There were 614 licences for the activity non-remote general betting limited (on-course), a decrease of 35 licences from March The betting industry in Great Britain is dominated by four operators and, as of 30 September 2012, their estates accounted for 84% of all betting shops. At 31 March 2012 their estates accounted for 82% 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 30 Sep 2012 William Hill 2,228 2,263 2,350 2,320 2,328 Ladbrokes 2,080 2,073 2,097 2,131 2,145 Gala Coral Group 1,630 1,645 1,712 1,725 1,728 Betfred Tote ,345 1,351 Other Approx 1,600 Approx 1, , , ,497 Total Approx 8,862 Approx 8,822 9,067 9,128 9,049 General information about the betting industry The gross gambling yield generated by the British non-remote betting sector has remained fairly static at 3bn between 2010/11 and 2011/12. Employees Table 11: Betting sector employees Average number of employees 57,319 54,129 54,449 1% 6 The Tote has now been purchased by Betfred. 7 This figure is 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 between 2010/11 and 2011/12 with the exception of Other which has grown by 31%. 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 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 Dogs Football Horses Numbers Other 1,000 0

14 14 The GGY figures for off-course betting have decreased in all activities with the exception of Other, which saw growth of 21% between 2010/11 and 2011/12. Football GGY declined by 15% during this period. Table 13: Off-course betting GGY Type Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 Dogs % Football % Horses % Numbers % Other % Total 1, , , % Figure 3: Off-course GGY Millions Dogs Football Horses Numbers Other 0

15 15 On-course betting The overall turnover figures for on-course betting have decreased between 2010/11 and 2011/12. Dogs turnover declined by 21% during this period and Horses turnover declined by 22%. Other increased by 38% during the same period. Table 14: On-course betting turnover Type Apr 2009-Mar 2010 Apr 2010-Mar 2011 Turnover Apr 2011-Mar 2012 Dogs % Horses % Other % Total % Figure 4: On-course betting turnover Millions Dogs Horses Other 50 0

16 16 The overall GGY figures for on-course betting have decreased by 15% between 2010/11 and 2011/12. Dogs GGY declined by 29% during this period and Horses GGY declined by 22%. Other GGY increased by 76% during the same period, rising from 2.24m to 3.94m. Table 15: On-course betting GGY Type Figure 5: On-course betting GGY Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 Dogs % Horses % Other % Total % Millions Dogs Horses Other 5 0

17 17 Pool betting The turnover figures for pool betting have remained fairly static between 2010/11 and 2011/12 with the exception of Other which has decreased by 47%. Table 16: Pool betting turnover Type Apr 2009-Mar 2010 Apr 2010-Mar 2011 Turnover Apr 2011-Mar 2012 Dogs % Football % Horses % Other % Total % Figure 6: Pool betting turnover Millions Dogs Football Horses Other 50 0

18 18 The GGY figures for pool betting have remained fairly static between 2010/11 and 2011/12 with the exception of Other which has decreased by 262%, from - 60,000 to - 230,000. Table 17: Pool betting GGY Type Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 Dogs % Football % Horses % Other % Total % Figure 7: Pool betting GGY Millions Dogs Football Horses Other - 10

19 19 Gaming machines in betting shops During the period April 2011 to March 2012, the number of gaming machines in betting shops accounted for 26% (22% in 2010/11) of the total number of machines across all licensed gambling sectors. Gaming machine GGY in betting shops accounted for 67% (64% in 2010/11) of gaming machine GGY across all licensed sectors. The GGY from B2 machines in betting shops accounted for 66% (64% in 2010/11) of machine GGY across all machine types and gambling sectors in the period April 2011 to March It accounted for 99% of GGY across all machine types in betting shops in the same period. Table 18: Average 8 gaming machine numbers Machine category Table 19: Gaming machine GGY Machine category Apr 2009-Mar 2010 Average number of gaming machines and terminals Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 B2/B3 34,795 34,459 35,662 3% B % C % D % Total 35,186 34,671 35,852 3% 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/B3 figures in table 18 above and table 19 below should be viewed with caution as the true level of B3 game play is not clear. B2/B3 1, , , % B % C % D % Aggregated categories % Total 1, , , % 8 Gaming machine numbers fluctuate during the year and as such operators are required to provide their average number of machines 9 Where GGY figures have been provided but not broken down by machine category.

20 20 During the period April 2011 to March 2012, the GGY of gaming machines in betting shops ( 1,447.27m) was greater than GGY of over the counter betting activity ( 1,394.63m). Table 20: Off-course betting sector breakdown of GGY Type Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 Over the counter (OTC) 1, , , % Machines 1, , , % Total 2, , , % Figure 8: Off-course betting sector breakdown of GGY 1,600 1,400 1,200 Millions 1, Over the counter (OTC) Machines

21 21 Self exclusions recorded by operators 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 16,413 20,900 20,193-3% Known breaches of self exclusion 8,419 10,502 11,062 5% Number of individuals who cancelled their self exclusion after minimum exclusion period 1,875 2,772 2,694-3% 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 d to challenged having gambled and unable to prove age. From 2011/12 we will not publish figures under the former question. Table 22: Betting sector underage challenges Challenged upon entry but unable to prove age 525, , ,035-7% Challenged when attempting to gamble but unable to prove age 71,142 90,513 Challenged having gambled but unable to prove age 33,776

22 22 Integrity in betting The Sports Betting Intelligence Unit (SBIU) is responsible for ensuring betting is fair and safe for all. 79 cases of suspicious betting activity have been reported to the Commission between 1 October 2011 and 30 September 2012 (including 43 cases between 1 April 2012 and 30 September 2012). 40 of the 79 cases were reported by betting operators under licence condition 15.1 in the first instance with 39 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 regulator s at home or overseas. Out of the 79 cases received 51 have been closed where the Commission was unable to substantiate suspicions or where the information has been referred to external agencies. Of the remainder, as of 30 September 2012, 28 cases are actively being assessed by the Commission. Table 23: Closed SBIU cases 1 October 2011 to 30 September Activity Cases closed 1 Oct 2011 to 31 Mar 2012 Cases closed 1 Apr 2012 to 30 Sep 2012 Badminton 1 Boxing 2 Cricket 2 1 Darts 1 Football 5 4 Greyhounds 3 1 Horseracing 12 3 Rugby League 1 Snooker 1 4 Specials - TV/Awards 1 Table Tennis 1 Tennis 3 5 Total The Commission does not disclose information on open cases due to the sensitive nature of enquiries. 10 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 Section 3: Bingo

24 24 Bingo Structure of the non-remote bingo industry As of 30 September 2012, 221 operators held non-remote bingo licences. The sector is broken down as follows: Table 24: Number of premises by operator Organisation Total premises at 30 Sep 2012 Gala Coral Group 143 Rank Group - Mecca Bingo Ltd 97 Cashino Gaming Limited 34 Luxury Leisure 24 Park Holidays UK Limited 23 Thomas Estates Limited 23 Top Ten Bingo 23 Independent/small operators 330 Total 697 The figures in table 24 are taken from the latest available data for each organisation for the year to 30 September 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. General information about the bingo industry Employees Table 25: Bingo sector employees Number of employees 17,242 17,741 15,328-14%

25 25 Bingo turnover The overall turnover figures for bingo have decreased by 3% between 2010/11 and 2011/12. Prize bingo has experienced the greatest decrease during this period, dropping from in 2010/11 to 25.99m in 2011/12, a decrease of 19%. Table 26: Bingo turnover Game type Apr 2009-Mar 2010 Apr 2010-Mar 2011 Turnover Apr 2011-Mar 2012 Main stage bingo % Mechanised cash bingo % Prize bingo % Total 1, , , % Figure 9: Bingo turnover Millions Main stage bingo Mechanised cash bingo Prize bingo

26 26 The overall GGY figures for bingo have increased by 1% between 2010/11 and 2011/12, despite decreases in GGY for main stage bingo (-3%) and prize bingo (-15%). Table 27: Bingo GGY (participation fees) Game type Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 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

27 27 Gaming machines in bingo clubs In the period April 2011 to March 2012, the number of gaming machines in bingo clubs accounted for 22% (22% in 2010/11) of the total number of machines across all gambling sectors. Gaming machine GGY in bingo halls accounted for 11% (11% in 2010/11) of gaming machine GGY across all sectors. The GGY from category C machines in bingo halls accounted for 52% (44% in 2010/11) of category C machine GGY across all gambling sectors in the period April 2011 to March Table 28: Average gaming machine numbers Machine category Average number of gaming machines and terminals B3 3,163 3,796 4,138 9% B % C 12,920 14,860 14,615-2% D 1,672 5,014 11, % Total 18,086 23,908 30,707 28% The large increase in category D machines is accounted for by the reporting of handheld bingo terminals in this category by one provider. The increase within some of the other machine categories is due to the conversion of AGC premises into bingo premises. Table 29: Gaming machine GGY Machine category Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 B % B % C % D % Aggregated categories % Total % 11 This figure is much higher than previously reported. This is due to a portion of data not accounted for in the last publication. This has now been restored to the data for this publication. 12 Where GGY figures have been provided but not broken down by machine category.

28 28 The GGY figures for bingo clubs have remained fairly static between 2010/11 and 2011/12 with participation fee GGY and gaming machine GGY both increasing slightly. Table 30: Bingo sector breakdown of GGY Revenue stream Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 Participation fee % Gaming machines % Total % Figure 11: Bingo sector breakdown of GGY Millions Bingo games Gaming machines 0

29 29 Self exclusions recorded by operators 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 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 question challenged when attempting to gamble but unable to prove age and the guidance issued in association with this question d to challenged having gambled and unable to prove age. From 2011/12 we will not publish figures under the former question. Table 32: Bingo sector age challenges Underage challenges 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 Under 18s 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 where under 18s are allowed. Although the law does not prevent under 18s from entering bingo clubs, the industry generally chooses to apply a no under 18s policy. 14 It is illegal for anyone under the age of 18 to gamble on a bingo premises.

30 30 Section 4: Casinos

31 31 Casinos 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 can be permitted to be licensed in Great Yarmouth, Kingstonupon-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 2012 only one large casino had opened under the 2005 Act Act casinos - licences not operational as of 31 March 2012 At 31 March 2012, there were Act casino premises licences available, comprising 146 casinos operating, 16 casinos licensed but subsequently closed and 27 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 146 casinos operating at 31 March Three companies own the majority of casinos in the industry, namely Genting UK (Genting Casinos/Clubs) with 44 casinos, the Rank Group (Grosvenor Casinos and G Casinos) with 36 casinos and the Gala Coral Group (Gala Casinos) with 27 casinos. As of 31 March 2012, six 2005 Act casino operating licences were held by operators and nine of the sixteen local authorities permitted to issue 2005 Act casino premises licences had begun their competition processes (seven large and two small). Table 33: Number of premises by operator Organisation Total casinos at 31 Mar 2010 Total casinos Total casinos at 31 Mar 2011 Total casinos at 31 March 2012 Genting UK (Genting Casinos/Clubs) Rank Group (Grosvenor and G Casinos) Gala Coral Group (Gala Casinos) London Clubs International Other operators Total Employees Employee numbers have been fairly static between 2009/10 and 2010/11. In 2011/12 average employee numbers increased by 784 from 13,389 to 14,173. This is in part due to the opening of a 2005 Act casino in December Table 34: Casino sector employees Number of employees 13,295 13,389 14,173 6%

32 32 Figure 12: Casino locations in Great Britain 31 March 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. Other London (London-based casinos not including the high end casinos) has seen the biggest growth in customer numbers, increasing by 12% from 3.55 million to 3.96 million. Table 35: Casino attendance Region Table 36: Average industry table numbers Game Number of casinos and number of customers Tables Casinos Customers Casinos Customers Casinos Customers Casinos Customers Scotland m m m 1 2% North m m m 0 4% Midlands & Wales m m m -3 3% South m m m -1 3% London high end m m m 0 0% Other London m m m 0 12% Total m m m -3 5% Average industry table numbers The average industry table numbers have remained fairly static between 2010/11 and 2011 /12 with the exceptions of the large decreases in Casino Stud Poker (-44%) and Other (-37%). Overall, table numbers are up by 3% for this period. Casino Stud Poker has been in decline across the whole three-year period and no longer features at many casinos. 3 Card Poker % American Roulette % Blackjack % Casino Stud Poker % Dice % Electronic Roulette 16 3,681 3,597 3,858 7% Punto Banco % Other % Total 5,762 5,678 5,864 3% 15 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. 16 this row shows player positions and not tables. 17 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 2010/11 and 2011/12 has increased by 7% from 4.94bn to 5.27bn. Punto Banco saw large growth during this period, increasing by 52%, reflecting its increased popularity with high value players. Dice remains a minority interest in the UK but showed even stronger growth of 71%, also reflecting the involvement of high value players. Table 37: Total drop by game Game Apr 2009-Mar 2010 Apr 2010-Mar 2011 Drop Apr 2011-Mar Card Poker % American Roulette 2, , , % Blackjack % Casino Stud Poker % Dice % Electronic Roulette % Punto Banco % Other % Total 4, , , % Figure 13: Casino sector breakdown of drop 3,000 2,500 Millions 2,000 1,500 1,000 American roulette Blackjack Electronic gaming Punto Banco 3 Card Poker Dice Casino Stud Poker Other 500 0

35 35 The overall casino win between 2010/11 and 2011/12 has increased by 9%, rising from m to m. Punto Banco saw winnings grow by 68% over this period. Table 38: Casino win by game Game Apr 2009-Mar 2010 Apr 2010-Mar 2011 Win Apr 2011-Mar Card Poker % American Roulette % Blackjack % Casino Stud Poker % Dice % Electronic Roulette % Punto Banco % Other % Total % Figure 14: Casino sector breakdown of win Millions American roulette Blackjack Electronic gaming Punto Banco 3 Card Poker Other Dice Casino Stud Poker 50 0

36 36 Gaming machines in casinos During the period April 2011 to March 2012, the number of gaming machines in casinos accounted for 2% (2% in 2010/11) of the total number of machines across all gambling sectors. Gaming machine GGY in casinos accounted for 6% (6% in 2010/11) of gaming machine GGY across all sectors. Overall gaming machine numbers between 2010/11 and 2011/12 increased by 6% from 2,575 to 2,723. Growth was seen against all categories of machines offered, although Category B1 machines continue to predominate. Table 39: Average gaming machine numbers Machine category Number of machines and terminals B1 2,499 2,540 2,656 5% B % B % Total 2,541 2,575 2,723 6% Overall gaming machine GGY between 2010/11 and 2011/12 increased by 9% 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 B % B % B % Aggregated categories % Total % 18 Where GGY figures have been provided but not broken down by machine category.

37 37 For the year April 2011 March 2012 gaming machine GGY accounted for 15% of total casino GGY. Gaming machine GGY also accounted for 15% of total casino GGY for the year April 2010 March Table 41: Total casino GGY Machine category Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Apr 2011-Mar 2012 Casino games % Machines % Total % Figure 15: Casino GGY Millions Casino games Machines

38 38 Self exclusions recorded by operators Table 42: Casino sector self exclusions Self exclusions Self exclusions 6,225 6,671 7,409 11% Known breaches of self exclusion ,001 58% Number of individuals who cancelled their self exclusion after minimum exclusion period 1,329 1,450 1,478 2% 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 d to challenged having gambled and unable to prove age. From 2011/12 we will not publish figures under the former question. Table 43: Casino sector age challenges Underage challenges 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 32

39 39 Section 5: 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 536 Adult Gaming Centre (AGC) licences and 199 Family Entertainment Centre (FEC) licences held by 589 operators. There were 72 licences to manufacture gaming machines or gaming machine software and 492 gaming machine supplier licences held under either the Act or under Section 27 of the 1968 Act. Table 44: Number of arcade premises Arcade type Number of premises as of 30 September 2012 Adult Gaming Centre (AGC) 1,820 Family Entertainment Centre (FEC) Figure 16: Breakdown of the arcade sector by GGY market share (April 2011-March 2012) FEC 22% AGC 78% Table 45: Number of licences - gaming machine manufacturers, suppliers, AGCs and FECs 1968 Act at 31 Mar 2010 at 31 Mar 2011 at 31 Mar 2012 at 30 Sep 2012 Section 27 certificate holders Act Machine suppliers Total Act Machine manufacturers Adult Gaming Centre (AGC) Family Entertainment Centre (FEC) Some manufacturers also supply machines (and may hold both licences). For the purpose of this section operators have been associated with the category (manufacturer or supplier) that best captures their business model. 19 Will only include those FECs licensed by the Commission, excludes those requiring only a permit from local licensing authorities. 20 Section 27 certificate holders must apply for an operating licence under the 2005 Act 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, including cranes and pushers. Larger manufacturers for the year to 30 September 2012 are: Astra Novomatic Global Draw/Barcrest Bell Fruit (Danoptra) At the time of publishing, Bell Fruit are now part of the Astra/Novomatic group (as of September 2011), but are kept separate 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 30 September 2012 are: AMG Leisure Limited Claremont Automatics Ltd Crown Leisure Limited Dransfield Novelty Company Ltd Gamestec Leisure Limited Global draw 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 There are a number of the large operators in this sector that submit their annual regulatory return information, covering the 2011/12 financial year, after the cut-off date for inclusion in this edition of the Industry Statistics (see Appendix 1). As a result, the 2011/12 figures reported in tables contains some estimates based on figures submitted previously. These estimated figures will be replaced by the actual figures in the June 2013 publication of the Industry Statistics. Number of employees Table 46: Gaming machine sector employees Licence type Number of employees AGC 14,860 15, ,798-45% FEC 22 3,430 2,909 2,395-18% Gaming machine technical 7,467 7,426 6,377-14% Totals 25,757 26,191 17,570-33% 21 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 motoway service area operators had reported all staff on site as AGC employees even if they had no contact with the AGC. 22 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 April 2011 to March 2012, the number of gaming machines in AGCs accounted for 30% (41% in 2010/11) of the total number of machines across all gambling sectors. Gaming machine GGY in AGCs accounted for 13% (16% in 2010/11) of gaming machine GGY across all sectors and has been on a declining trend, year-on-year, over the three-year period displayed. Table 47: Average AGC machine numbers Machine category B3 10,213 9,476 6,960-27% B % C 39,885 33,778 21,232-37% D 20,165 20,294 14,390-29% Total 70,438 63,754 42,666-33% Table 48: AGC machine GGY Machine category Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 B % B % C % D % Aggregated categories % Total % In the period April 2011 to March 2012, the number of gaming machines in FECs accounted for 20% (20% in 2010/11) of the total number of machines across all gambling sectors. Gaming machine GGY in FECs accounted for 4% (4% in 2010/11) of gaming machine GGY across all sectors. Table 49: Average licensed FEC machine numbers Machine category C 3,628 3,420 2,350-31% D 28,445 27,407 26,216-4% Total 32,073 30,827 28,566-7% Table 50: Licensed FEC GGY Machine category Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 C % D % Aggregated categories % Total % 23 Where GGY figures have been provided but not broken down by machine category.

43 43 Figure 17: Arcades GGY by machine category Millions Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Agg= Aggregrated 0 B3 B4 C D Agg C D Agg AGC FEC

44 44 Self exclusions recorded by operators 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 51: Sector self exclusions Licence type Apr Mar 2010 Apr Mar 2011 Self exclusions Apr Mar 2012 Self exclusions AGC 3,021 2,780 2,464-11% Known breaches of self exclusion Number of individuals who cancelled their self exclusion after minimum exclusion period FEC % AGC % FEC % AGC % FEC 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 d to challenged having gambled and unable to prove age. From 2011/12 we will not publish figures under the former question. Table 52: Arcade sector age challenges Challenged upon entry but unable to prove age Licence type Apr Mar 2010 Apr Mar 2011 Self exclusions Apr Mar 2012 AGC 12,876 15,731 17,880 14% FEC 24 N/A N/A N/A Challenged when attempting to gamble but unable to prove age Challenged having gambled but unable to prove age AGC FEC AGC 1,515 FEC Children are allowed in FECs.

45 45 Section 6: Lotteries

46 46 Lotteries Lotteries Structure of the lotteries industry As of 30 September 2012, there were 478 non-commercial society lottery operators holding 733 lottery licences. Those licences comprised 476 non-remote society lottery operating licences, 149 remote society lottery operating licences and 108 ancillary remote society lottery operating licences. A society is defined as non-commercial if it is organised for charitable, sporting, cultural or other purposes apart from private or commercial gain. Societies may employ a licensed external lottery manager (ELM) to promote all or part of their lottery on their behalf. As of 30 September 2012, there were 34 ELMs holding 48 licences. Those licences comprised 30 non-remote ELM operating licences and 18 remote ELM operating licences. Table 53: Lottery licences Licence Type at 31 Mar 2010 at 31 Mar 2011 at 31 Mar 2012 at 30 Sep 2012 Society lotteries 25 Non-remote Remote Ancillary remote ELMs Non-remote Remote General information about lotteries Employees Table 54: ELM employees Gambling where individuals were unable to prove their age Number of employees % There were no incidents recorded by ELMs or society lotteries when someone who attempted to gamble, or gambled, when challenged was unable to prove their age. In most types of lottery, the risk of under age play is very low due to the nature of the gambling activity. 25 the decrease in the number of remote society lottery operating licences can be attributed to the introduction of the new ancillary remote society lottery operating licence, which came into effect in April 2012.

47 47 Society lotteries The total proceeds for society lotteries have increased by 43% between 2010/11 and 2011/12. Prizes from proceeds, expenses and balance (to good causes) have all risen during this period. As a proportion of the total proceeds, balance (to good causes) has decreased from 49% to 42%, expenses have increased from 32% to 34% and prizes from proceeds have increased from 19% to 24% between 2010/11 and 2011/12. Table 55: Total lottery proceeds, expenses and prizes (includes ELM managed lotteries) Apr 2009-Mar 2010 Apr 2010-Mar 2011 Apr 2011-Mar 2012 Prizes from proceeds % Expenses % Balance (to good causes) % Total proceeds % Proceeds of above raised by ELMs % % Proceeds from above raised by ELMs 29% 45% 39% -12% Figure 18: Lottery proceeds, expenses and prizes Lottery proceeds, expenses and prizes Apr Mar 2010 Apr 2010-Mar 2011 Apr Mar 2011 Apr 2011-Mar 201 Apr Mar % 19% 24% 51% 29% 49% Prizes from proceeds 42% Expenses Balance (to good causes) 32% Apr 2010-Mar 2011 Prizes from proceeds Expenses Balance (to good causes) 34% 19% Prizes from proceeds 49% Expenses 32% Balance (to good causes) 26 Excludes prizes from rollovers. 27 The significant increase in lottery proceeds for the period 2011/12 is partially due to the introduction of a new lottery scheme.

48 48 Section 7: Remote betting, bingo and casino

49 49 Remote betting, bingo and casino Remote gambling industry The estimates provided in tables 56 and 57 below are provided courtesy of H2 Gambling Capital ( It is estimated that global remote gambling GGY (excluding telephone betting) was 20.1bn during 2011, which represents 10% growth on the previous year. UK consumer GGY (includes GGY generated with operators regulated overseas), which includes telephone betting, is estimated to have grown 5% between 2010 and 2011 to reach 2bn. Remote gambling GGY licensed in Great Britain accounts for 4% of the global remote GGY. Table 56: The global remote industry (excludes telephone betting) Jan 2009-Dec 2009 Jan 2010-Dec 2010 Jan 2011-Dec 2011 (from ) GGY 16,670 18,270 20,075 10% Table 57: The UK consumer remote industry Jan 2009-Dec 2009 Jan 2010-Dec 2010 Jan 2011-Dec 2011 (from ) GGY 1,760 1,940 2,040 5% Structure of the British licensed remote gambling industry The remote gambling industry in Great Britain, which includes both UK and overseas consumer activity conducted under a Commission licence, is made up primarily as follows: some high street bookmakers that also offer remote gambling large remote-only operators smaller betting operators that operate remote gambling facilities themselves fantasy football style remote pool betting operators smaller remote-only bingo and casino operators that do not offer any premises based gambling businesses supplying gambling software to gambling operators. As of 30 September 2012 there were 293 remote gambling activity licences held by 216 operators. Table 58: Breakdown of remote gambling activities licensed by the Commission Activity at 31 Mar 2010 at 31 Mar 2011 at 31 Mar 2012 at 30 Sep 2012 Gambling software General betting (real events) General betting (virtual events) Pool betting General betting (telephone) Casino Betting intermediary (trading room only) Betting intermediary Bingo Total