Casino Insights & Trends. May 2011

Transcription

1 Casino Insights & Trends May 2011

2 Contents

3 Market Environment

4 Casino Market in Brief Recent growth masks underlying difficulties Casino expenditure in the UK has remained above 1.1 billion in 2010, thanks to growth in the online sector compensating for continued decline in land-based venues. Short-term prospects for growth are likely to be constrained by on-going pressure on consumers disposable incomes, a maturing of the online gambling market and lack of scope for expansion of the land-based sector. More visits, but less money on the table Casino admissions grew rapidly following the introduction of the Gambling Act, with new levels achieved being sustained during the current recession. However, admission growth has not translated into increased revenues, as new customers have tended to be more casual and lower spending in nature, particularly where table gaming is concerned. Similar players, differing motivations Although land-based and online casinos share common demographic appeal particularly to men, under-25s and more affluent groups they appear to attract largely distinct audiences within these markets by catering to different types of demand. Online players are motivated primarily by financial gain, whereas land-based players are more interested in the quality of facilities and games available than in their prospects of breaking the bank. Potential of technology worth a spin Casino gaming is well placed to benefit from current technology trends towards platform neutrality in entertainment media and mobile internet connectivity. Opportunities are emerging to blend elements of land-based and online play, location-sensitive technology is enabling call-to-action marketing strategies, and casino game formats are well suited to small screen and mobile play through both their visual appeal and speed of action.

5 m Market Size and Forecast The growth of online gambling, and particularly casino gaming, has been heavily driven by the appetite for in-home entertainment and the ability of technology to cater for it in ever more innovative ways. Recent advances have uniformly been about adding realism to the computer-generated experience: live dealers, 3D imagery and a replication of the private tables available in land-based venues. Consumer expenditure on casino gaming, ,400 1,200 1, Growth in online casino gambling has compensated for a continued decline in land-based venues, with total casino expenditure in the UK expected to hit 1.15 billion in 2010 up 2.7% on (est) 2011 (fore) 2012 (proj) 2013 (proj) 2014 (proj) 2015 (proj) Source: Gambling Commission/Mintel at current prices at 2010 prices

6 m Segment Performance The growth of online gambling, and particularly casino gaming, has been heavily driven by this appetite for in-home entertainment and the ability of technology to cater for it in ever more innovative ways. Recent advances have uniformly been about adding realism to the computer-generated experience: live dealers, 3D imagery and a replication of the private tables available in land-based venues. Consumer expenditure on casino gaming, by segment, (est) Land-based casinos Online casinos Source: Gambling Commission/Mintel

7 Market Share Land-based casino operators, by number of venues, 2010 Clockfair, 2 Others, 12 Aspers Group, 4 A&S Leisure, 6 Genting UK, 46 London Clubs International, 10 Gala, 26 Rank Group, 35 Source: Mintel

8 Where Do We Play Online? Most popular online casinos, July 2010 Williamhill.com Ladbrokes.com 888.com Betfair.com Paddypower.com Coral.co.uk Bet365.com Jackpotjoy.com PartyGaming websites (eg PartyPoker, PartyCasino etc) Winner.com Other online gambling website % of respondents The domination of online casino visiting by bookmaker brands indicates the on-going importance of brand recognition and trust, and also the extent to which sports betting is driving business to casino sites. The continuing appeal of bonuses and free credits shows that, despite their attraction to brand reputation, consumers levels of loyalty to these brands are comparatively low. Base: 206 internet users aged 18+ who play online casinos Source: GMI/Mintel

9 Ad Market & Traffic Trends

10 Gambling AdSpend Gambling operators UK adspend, , ,000 Monthly average adspend is currently above that of 2008 and 2009 as operators compete for share in a maturing market , ,000 80,000 60,000 40,000 20,000 Mainstream gambling sectors such as football pools, lottery and bingo consistently spend most on advertising, reflecting the breadth of the leisure market in which they compete and more casual nature of their customer base. Television and press advertising receive the most adspend in a reflection of their ability to reach the mass market that mainstream operators seek * * Projected Source: Nielsen Media Research/Mintel

11 Gambling Spend by Media * Internet does NOT include Search spend. Display only according to Nielsen Source: NNR addynanix : Jan December 2010

12 Gambling Search Traffic KPIs Traffic Searches for gambling and gambling related terms increased by +38% in 2010 compared to Searches for gambling terms increased by +31% Jan & Feb 2011 v Jan & Feb Insights: Casino and Poker terms are traditionally male orientated versus the more female orientated bingo based terms. Mainstream gambling sectors such as football pools, lottery and bingo consistently spend most on advertising, reflecting the breadth of the leisure market in which they compete and more casual nature of their customer base. 1. Microsoft Advertising Intelligence Tool

13 Gambling Demographics and Daily Trends Saturday has been the largest traffic driving day over the last 2 months (Jan & Feb) this is mainly aligned with football betting terms. Potential incremental targeting opportunities would include up-weighting target campaigns on certain days of the week e.g. football on Tuesday, Wednesday & Weekends. The and age brackets are the main age groups for traffic with 29%. This age groups are the target age groups across gambling terms. Gender breakdown tends to focus on Males however by gambling product this changes i.e. Bing = Females, Sports Betting = Males. 1.Microsoft Advertising Intelligence Tool December 2010 to Feb 2011 data

14 Network Demographics The majority of the impressions and clicks occur in the age groups of 18 to 24 year olds. Conversions however peak in both the and year old group. Across the network the females tend to convert higher than males but this could be attributed to the tendency for Bingo advertisers to appear over the last few months Sports betting, poker and casino advertisers have a more male demographic skew. Source: Microsoft Media Network : July 2010 Dec % of all IMP/CLK/Con

15 Display Advertisement Publisher Location: Ad Impressions v Unique Visitors (Gambling) Microsoft sites have continued to delivered a high number of unique visitors for Gambling advertisers. Although Microsoft sites displayed -16% less Ad Impressions than Yahoo!, Microsoft Sites delivered +21% more Unique visitors ebay sites delivered the majority of Ad Impressions, 135% more impressions than Microsoft advertising but only delivered an extra 25% Unique visitors. Source: ComScore admetrix : March 2011

16 Display Advertisement Publisher Location: Reach and Frequency (Gambling) Microsoft Advertising delivered the second highest reach of Ad exposed users. ebay had a 19.2% share of Gambling Ad Impressions and with a reach of 40%, Microsoft sites received only a 8.2% share of Ad Impressions yet still managed to deliver a reach of 32.4%. Microsoft sites have both an enormous reach but also enable advertisers to increase the number of unique visitors to sites above many of the major competitors. Source: ComScore admetrix : March 2011

17 Top Gambling Advertisers (March 2011) Source: ComScore admetrix : March 2011

18 Gambling spend monthly average ( ) Microsoft users spend 37/ month on gambling, 4 more than the UK average of UK average WL/ MSN/ Bing AOL Google Virgin Media Orange Yahoo!.com TGI GB Q Base: 18+ average gambling spend (monthly), excludes lotto

19 % Reach Avg Mins Per Visit Portal Performance: Heavy Gamblers Microsoft reaches 93% of Heavy Gamblers. Avg Mins per visit are 18% greater than the nearest competitor, AOL % reach Avg Mins Per Visit Microsoft Yahoo! Sky Portal AOL, Inc Virgin Media comscore March 2011 Segment Metrix: Heavy Gamblers

20 Industry Insights

21 Why Do People Go To Casinos? Factors influencing casino visiting, June 2010 The quality of bar/restaurant facilities Extra entertainment (eg live music) Friendliness of staff The variety of games on offer Recommendations from family/friends Special offers (eg free gambling chips/free bets) The option for beginners to learn games/start with play money Loyalty schemes/rewards for repeat visits If it was a brand/chain I'd heard of The size/availability of a poker room/card room Online recommendations/reviews Other None of these % of respondents Base: 605 adults aged 18+ who have visited or would like to visit a casino Source: Ipsos MORI/Mintel

22 % of respondents Who Plays Online Casinos? Online casino play in context, July % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Online sports betting Online bingo Have never done Online casino games (eg roulette, blackjack, video slots etc) Online poker Have done but not in last year Other online gambling (eg play online scratchcards, do National Lottery online) Occasionally (less than once a month but at least once in the last year) Regularly (at least once a month) Online casino play loses ground to sports betting, bingo and poker at the more regular levels of participation, suggesting it lacks a potential hook to keep consumers coming on a frequent basis. Rising levels of online National Lottery play could normalise online gambling in the same way that high street ticket sales have helped bring land-based gaming more into the leisure mainstream. Base: 1,931 internet users aged 18+ Source: GMI/Mintel

23 Why Do We Play Casino Games Online? Attitudes towards online casinos, July 2010 I often join up to new sites if they offer free bets/credits I prefer to stick to a brand I know and trust I tend to stick to sites where I am familiar with the layout/interface Loyalty/rewards schemes have encouraged me to stick with a particular site I only use brands that have a reputation for being trustworthy and responsible I prefer to use the same website for all my online gambling needs (eg poker, sports betting, casino I have signed up for a site because of a recommendation from a friend I like the idea of being able to chat to other players while I'm playing casino games I have used/would be interested in using a casino app on my mobile phone % of respondents Financial incentives and familiarity are the main drivers of consumer choice in casino visiting. These motivations differ significantly from those of land-based players, for whom facilities and games are most important. More experienced players are most willing to stray from the safety of established multi-platform brands, creating an opportunity for more sophisticated niche players to sell themselves as the expert s choice. Base: 206 internet users aged 18+ who play online casinos Source: GMI/Mintel

24 Lapsed Players Why Did They Stop? Reasons for stopping online casino gambling, July 2010 I was losing too much money/not breaking even I just lost interest in gambling I wasn't making as much profit as I wanted My financial circumstances changed (eg lost my job, mortgage payments went up) I had to cut back on my spending to be able to afford something else I got bored of playing the same old games My personal circumstances changed (eg had children, got married, met a new partner) I started gambling more elsewhere, eg sports betting, bingo, poker etc I prefer to gamble in person (eg friend's house, betting shop, real casino) these days % of respondents Four of the five most commonly cited reasons for stopping playing casino games online are financial ones. Expectations of winnings clearly drive much participation leaving disappointed customers vowing not to return when they discover the house usually takes its share. Loss of interest in gambling is likely another manifestation of the same effect losing money tends to dull the enthusiasm. Base: 141 internet users aged 18+ who no longer play online casino games Source: GMI/Mintel

25 Non-players Attitudes to Online Casinos Reasons for never having played online casino games, July 2010 I am not interested in gambling at all/am opposed to gambling I gamble in person but not online I wouldn't want a gambling website to have my bank details I'd like to try but am worried about how much I'd lose I'd like to try but am worried I'd get 'addicted' As in the land-based sector, lack of interest in gambling is the main reason why consumers choose not to play casino games online. Unfamiliarity is at the root of many of the issues nonplayers have with online casinos. I wouldn't understand how to play the games I don't think online financial transactions are secure I have played/would be interested in playing for play money I find online gambling websites too complicated % of respondents Operators and their more experienced customers would dispute the ideas that they are indifferent to security or that their games are hard to play and create risks of problem gambling yet these are all cited by non-players as barriers to their participation. Base: 1,584 internet users aged 18+ who have not participated in online gambling in the last year Source: Ipsos MORI/Mintel