Gambling Commission - Industry statistics /09/10/11. Industry statistics. April 2008 to September 2011

Transcription

1 1 08/09/10/11 Industry statistics April 2008 to September 2011

2 2 Contents Gambling industry data 4 Betting 10 Bingo 22 Casinos 29 Gaming machines, including arcades 37 Lotteries 42 Remote betting, bingo and casino 45 Appendix 1 - Regulatory returns analysis 51 Appendix 2 - Terminology 53

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 October September 2011 More recent data (up to 31 March 2012) not sourced from regulatory returns is also included where available. 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. 3. All regulatory returns due for the periods 1 April March 2009 and 1 April March 2010 should have been submitted. Accordingly those figures are correct as of the date of publication, although may be subject to further minor change arising from overdue returns or identification of errors made in submissions. The figures provided for 1 April March 2011 and 1 October September 2011 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. 4. 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. 6. The terminology used in this document is explained in appendix Totals and percentages are calculated from unrounded figures. 8. Further statistics and information relating to the Commission and its activities are contained in the Commission s annual reports and licensing authority statistics publications. These are available on the Commission website, along with useful links, at:

4 4 Gambling industry data

5 5 Introduction Market size During the period October 2010 to September 2011, the British gambling industry, as regulated by the Commission, generated a gross gambling yield (GGY see appendix 2) of 5.6 billion. 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 overseas regulated sites. As an example, estimates put the UK consumer market at 2 billion for 2010, approximately three times the size of the British regulated remote market. 1 Fig 1: Market share by GGY April 2010 to March September Casino 15% Remote 12% Bingo 11% Arcades 7% Betting 52% Lottery 3% Table 1: GGY comparisons across all gambling sectors Sector Apr 2008-Mar 2009 Apr 2009-Mar 2010 Gross gambling yield Apr 2010-Mar 2011 Oct 2010-Sep 2011 Non-remote sector 4, , , , Arcades Betting 2, , , , Bingo Casinos Remote betting, bingo and casino gambling 2 Lotteries (remote and nonremote) Total 5, , , , The Northern Ireland consumer market represents a small proportion of the UK total. 2 As regulated by the Commission.

6 6 Table 2: Gaming machine numbers across all gambling sectors Machine category Average number of machines Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 B1 2,477 2,438 2,472 2,682 B2 31,484 33,839 32,973 33,982 B3 12,702 13,761 12,025 13,086 B C 60,580 56,529 49,297 48,884 D 49,213 50,332 50,708 55,498 Grand total 157, , , ,540 Table 3: Gaming machine GGY across all gambling sectors Machine category Apr 2008-Mar 2009 Gross gambling yield Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 B B2 1, , , , B B C D Aggregated categories* Grand total 1, , , , *Where GGY figures have been provided but not broken down by machine category. As the Commission does not license pubs, clubs, working men s clubs or 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. Table 4: Number of employees across all gambling sectors* Sector Head count Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Betting 60,247 57,568 54,561 55,619 Bingo 15,917 15,418 15,950 16,268 Casino 13,321 13,295 13,252 14,028 Arcades 16,499 16,560 14,214 12,554 Gaming Machine Technical 9,867 9,267 8,466 7,151 Lotteries (ELM) ,510 1,412 Remote (FTE only) 8,918 7,465 6,800 7,043 Total 125, , , ,075 *Includes full-time and part-time posts.

7 7 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 our grant in aid, which was previously used to pay for the British Gambling Prevalence Survey, was withdrawn. Following the conclusion of the Commission s review and consultation, we have moved to an approach where problem gambling prevalence will be measured via the inclusion of gambling questions in wider health surveys (the Health Survey for England and the Scottish Health Survey). The gambling module included within the Health Surveys is structured to ensure maximum comparability with the data from the three prevalence surveys undertaken to date. The Commission will continue to monitor gambling participation on a more regular basis via the inclusion of revised questions in omnibus surveys. This single, new set of omnibus survey questions will replace the two sets of omnibus questions previously used. The British Gambling Prevalence Survey (BGPS) 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 trends in participation in gambling activities for a number of years. We currently commission 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 monitoring 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 not directly comparable with those of the BGPS 2007 or BGPS 2010 which look at respondents gambling in the past week and past year. Participation in all gambling activities In the year to September , 57.1% 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 57.1% 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 September 2011 All respondents 54.7% 56.2% 57.1% In the year to September 2011, the most popular gambling activity was National Lottery tickets (47.0% of respondents), followed by National Lottery scratchcards (11.6%) and tickets for society or other good cause lotteries (10.5%). Betting on horse races, gambling on fruit or slot machines, buying bingo cards or tickets at a bingo hall, and private betting with family, friends or colleagues were the next most popular activities (4.6%, 3.5%, 3.2% and 3.2% respectively). 3 The omnibus survey results are published quarterly. More up-to-date and more detailed information is available on our website at www. gamblingcommission.gov.uk

8 8 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 September 2011 National Lottery tickets 45.4% 46.0% 47.0% National Lottery products only (not 32.0% 32.1% 32.3% participating in any other gambling activity) National Lottery scratchcards 10.5% 10.3% 11.6% Tickets for society or other good cause 9.9% 11.4% 10.5% lotteries Betting on horse races or virtual horse 3.5% 4.0% 4.6% races with a bookmaker (does not include online) Fruit or slot machines 3.1% 3.0% 3.5% Bingo cards/tickets at a bingo hall 2.9% 2.9% 3.2% Private betting, playing cards/games for money with family, friends or colleagues 3.3% 2.7% 3.2% Participation in remote gambling In the year to September 2011, 11.9% 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 11.9% 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 September 2011 All respondents 10.7% 11.2% 11.9% The growth in participation in remote gambling between the year to March 2010 and the year to September 2011 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 September 2011, 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 September 2011 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% 5.6% Overall, in the year to September 2011, 9.5% of respondents said they had remotely purchased tickets 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 (10.6% of all respondents), followed by gambling via mobile phone (2.9%) and interactive/digital TV (1.5%).

9 9 Table 9: Proportion of respondents gambling using different remote methods in the past four weeks (survey data on gambling participation) Methods of remote Year to March 2010 Year to March 2011 Year to September 2011 gambling Internet through a PC, 9.4% 9.8% 10.6% laptop or handheld device WAP/internet or text (SMS) 2.8% 3.1% 2.9% on a mobile phone Interactive/digital TV 1.7% 1.4% 1.5%

10 10 Betting

11 11 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 at 31 March 2012, there were 459 licences held by operators for the activity non-remote general betting standard (off-course) and 649 for the activity non-remote general betting limited (on-course). The betting industry in Great Britain is dominated by four operators and, as at 31 March , 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 As at 31 Mar 2009 As at 31 Mar 2010 As at 31 Mar 2011 As at 31 Mar 2012 William Hill 2,228 2,263 2,350 2,320 Ladbrokes 2,080 2,073 2,097 2,131 Gala Coral Group 1,630 1,645 1,712 1,725 Betfred Tote ,345 Other 1,600 Approx 1,500 1,554* 1,607* Total 8,862 Approx 8,822 9,067 9,128 * During 2010/11 the Commission requested gambling premises data from all licensing authorities in Great Britain in order to update its location database. All but 14 licensing authorities responded and this information is used here where previously the Commission has published only estimates. All other figures are obtained directly from operators. General information about the betting industry The gross gambling yield generated by the British non-remote betting sector has remained fairly static between the year to March 2011 and the year to September 2011, remaining unchanged at 2.95bn. Employees Table 11: Betting sector employees Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Average number of employees 60,247 57,568 54,561 55,619 4 Figures for the major five bookmakers were obtained from the companies concerned. 5 The Tote has now been purchased by Betfred.

12 12 Off-course betting Table 12: Off-course betting turnover Type Apr 2008-Mar 2009 Apr 2009-Mar 2010 Turnover Apr 2010-Mar 2011 Oct 2010-Sep 2011 Dogs 1, , , , Football , Horses 5, , , , Numbers Other Total 9, , , , Fig 2: Off-course betting turnover 12, , Other 8, , Numbers Horses 4, , Football Dogs.00 Apr Mar 2009 Apr Mar 2010 Apr Mar 2011 Oct Sep 2011

13 13 Table 13: Off-course betting GGY Type Apr 2008-Mar 2009 Apr 2009-Mar 2010 GGY Apr 2010-Mar 2011 Oct 2010-Sep 2011 Dogs Football Horses Numbers Other Total 1, , , , Fig 3: Off-course GGY 1, , , , , Other Numbers Horses Football Dogs.00 Apr Mar 2009 Apr Mar 2010 Apr Mar 2011 Oct Sep 2011

14 14 On-course betting Table 14: On-course betting turnover Type Apr 2008-Mar 2009 Apr 2009-Mar 2010 Turnover Apr 2010-Mar 2011 Oct 2010-Sep 2011 Dogs Horses Other Total Fig 4: On-course betting turnover Other Horses Dogs Apr Mar 2009 Apr Mar 2010 Apr Mar 2011 Oct Sep 2011

15 15 Table 15: On-course betting GGY Type Apr 2008-Mar 2009 Gross gambling yield Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Dogs Horses Other Total Fig 5: On-course betting GGY Other Horses Dogs Apr Mar 2009 Apr Mar 2010 Apr Mar 2011 Oct Sep 2011

16 16 Pool betting Table 16: Pool betting turnover Type Apr 2008-Mar 2009 Apr 2009-Mar 2010 Turnover Apr 2010-Mar 2011 Oct 2010-Sep 2011 Dogs Football Horses Other Total Fig 6: Pool betting turnover Other Horses Football Dogs Apr Mar 2009 Apr Mar 2010 Apr Mar 2011 Oct Sep 2011

17 17 Table 17: Pool betting GGY Type Apr 2008-Mar 2009 Gross gambling yield Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Dogs Football Horses Other Total Fig 7: Pool betting GGY Other Horses Football Dogs Apr Mar 2009 Apr Mar 2010 Apr Mar 2011 Oct Sep 2011

18 18 Gaming machines in betting shops Table 18: Average gaming machine numbers 6 Machine category Average number of gaming machines and terminals Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 B2 31,439 33,804 32,944 33,939 B B C D Total 32,022 34,340 33,355 34,316 Table 19: Gaming machine GGY 6 Machine category Apr 2008-Mar 2009 Gross gambling yield Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 B2 1, , , , B B C D Aggregated categories* Total 1, , , , *Where GGY figures have been provided but not broken down by machine category. 6 If a single gaming machine offers games of different categories the machine is counted as the highest category of game offered. For example if a gaming machine offers B2 and B3 content for the purpose of regulatory returns it is counted as a B2 gaming machine. Betting operators gaming machines may include B2 and B3 content. In line with the previous footnote, where a machine offers games of different categories the GGY is currently attributed to the highest category of game available. For example, GGY generated by B3 gaming machine content on a terminal which also offers B2 content will be reported as B2 GGY.

19 19 Table 20: Off-course betting sector breakdown of GGY Type Apr 2008-Mar 2009 Gross gambling yield Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Over the counter (OTC) 1, , , , Machines 1, , , , Total 2, , , , Fig 8: Off-course betting sector breakdown of GGY 3, , , , Machines OTC 1, Apr Mar 2009 Apr Mar 2010 Apr Mar 2011 Oct Sep 2011

20 20 Self exclusions recorded by operators Table 21: Betting sector self exclusions Self exclusions Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep ,424 16,052 20,879 21,029 Known breaches of self exclusion 4,033 8,148 10,492 10,368 Number of individuals who cancelled their self exclusion after minimum exclusion period 1,160 1,869 2,635 3,089 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 Table 22: Betting sector underage challenges Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Challenged upon entry but unable to prove age 87, , , ,099 Challenged when attempting to gamble but unable to prove age 22,008 64,693 86,484 67,492

21 21 Integrity in betting 279 cases of suspicious betting activity have been reported to the Commission between 1 September 2007 and 31 March 2012 (including 35 cases between 1 October 2011 and 31 March 2012). 191 of the 279 cases were reported by betting operators under licence condition 15.1 in the first instance with 88 coming from sports governing bodies or other sources such as the media, the public or non-regulated bodies. All intelligence received is logged, and assessed before deciding how to proceed. Where possible the information is linked to previous intelligence concerning individuals or events. This process of continuously adding value to reports ensures that we give the maximum support to investigations by the Commission or other appropriate authorities, for example, sports governing bodies, police and other regulators at home and overseas. A breakdown of the activities involved in those 279 cases is provided below. Following an initial assessment 253 cases have been closed. Of these: Suspicion was unsubstantiated in 157 cases (this means that an explanation for what was considered suspicious has been found that has eliminated any further suspicion). 4 were passed to a relevant authority at home or overseas. 51 were passed to the relevant sport s governing body as the nature of the event is more appropriately dealt with under sports rules. 41 closed cases which do not fit into the above categories: o 5 cases closed where enforcement and other agencies were involved with a successful result. o 36 cases merged by the Sports Betting Intelligence Unit due to commonalities with other cases. Of the remainder, as at 31 March 2012, 13 cases are still at the preliminary assessment stage and there are 13 active investigations in which the Commission is involved. Table 23: Unsubstantiated suspicious betting activity (1 September 2007 to 31 March 2012) 8 Activity Total cases closed to 31 Mar 2010 Cases closed 1 Apr 2010 to 30 Sep 2010 Cases closed 1 Oct 2010 to 31 Mar 2011 Cases closed 1 Apr 2011 to 30 Sep 2011 Cases closed 1 Oct 2011 to 31 Mar 2012 Total cases closed to 31 Mar 2012 Bowls Boxing Cricket Darts Football Golf Greyhounds Horseracing Multi Non-sport Rugby League Snooker Specials other Specials TV/awards Squash Table tennis Tennis Unknown Totals 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.

22 22 Bingo

23 23 Bingo Structure of the non-remote bingo industry As at 31 March 2012 there were 230 operators holding non-remote bingo licences. The sector is broken down as follows: Table 24: Number of premises by operator Organisation Total premises at 31 Mar 2012 Gala Coral Group 143 Rank Group - Mecca Bingo Ltd 97 Top Ten Bingo 23 Cashino Gaming Limited 34 Park Holidays UK Limited 23 Thomas Estates Limited 15 Southern Amusements 13 Independent/small operators 298 Total 646 The figures in table 24 are taken from the latest available data for each organisation for the year to 31 March 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. In recent publications the Commission has broken down premises into categories, such as converted AGCs or holiday parks, by consulting industry stakeholders. However, as the Commission does not collect data on this type of distinction, and as smaller high street venues become more common (through conversions or new premises) such distinctions become less clear. It has been decided to discontinue such a categorisation of premises within this publication. General information about the bingo industry Employees Table 25: Bingo sector employees Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Number of employees 15,917 15,418 15,950 16,268

24 24 Bingo turnover Table 26: Bingo turnover Game type Apr 2008-Mar 2009 Apr 2009-Mar 2010 Bingo turnover Apr 2010-Mar 2011 Oct 2010-Sep 2011 Main stage bingo Mechanised cash bingo Prize bingo Total 1, , , , Fig 9: Bingo turnover 1, , , , Prize bingo Mechanised cash bingo Main stage bingo games Apr Mar 2009 Apr Mar 2010 Apr Mar 2011 Oct Sep 2011

25 25 Table 27: Bingo GGY (participation fees) Game type Apr 2008-Mar 2009 Gross gambling yield Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Main stage bingo Mechanised cash bingo Prize bingo Total Fig 10: Bingo GGY Prize bingo Mechanised cash bingo Main stage bingo games Apr Mar 2009 Apr Mar 2010 Apr Mar 2011 Oct Sep 2011

26 26 Gaming machines in bingo clubs Table 28: Average gaming machine numbers Machine category Apr 2008-Mar 2009 Average number of gaming machines and terminals Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 B3 2,458 3,276 3,030 4,301 B C 14,395 13,255 14,896 16,252 D 1,965 1,746 4,981 9,773 Total 19,212 18,608 23,143 30,544 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 other machine categories is due to the conversion of AGC premises into Bingo premises. Table 29: Gaming machine GGY Machine category Gross gambling yield Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 B B C D Aggregated categories* Total *Where GGY figures have been provided but not broken down by machine category. The decrease in GGY in B3 and B4 machines is the result of some operators mis-categorising their GGY figures into other categories (significant numbers of B3 machines GGY is counted as category C) or by submitting GGY figures as a whole rather than by their category distinctions. These numbers are accounted for under Aggregated categories.

27 27 Table 30: Bingo sector breakdown of GGY Revenue stream Apr 2008-Mar 2009 Gross gambling yield Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Participation fee Gaming machines Total Fig 11: Bingo sector breakdown of GGY Gaming machines Participation fees Apr Mar 2009 Apr Mar 2010 Apr Mar 2011 Oct Sep 2011

28 28 Self exclusions recorded by operators Table 31: Bingo sector self exclusions Self exclusions Self exclusions Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep Known breaches of self exclusion Number of individuals who cancelled their self exclusion after minimum exclusion period 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 Table 32: Bingo sector age challenges Underage challenges Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Challenged upon entry but unable to prove age 9 Challenged when attempting to gamble but unable to prove age Under 18s are allowed in 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. 10 It is illegal for anyone under the age of 18 to gamble on a bingo premises.

29 29 Casinos

30 30 Casinos Structure of the non-remote casino industry There were 146 casinos operating at 30 September Three companies own the majority of casinos in the industry, namely Genting UK (Genting Casinos) with 43 casinos, the Rank Group (Grosvenor Casinos and G Casinos) with 37 casinos and the Gala Coral Group (Gala Casinos) with 29 casinos. As at 30 September 2011, seven 2005 Act casino operating licences were held by operators and eight of the sixteen local authorities permitted to issue 2005 Act casino premises licences had begun their competition processes (six large and two small). The first 2005 Act casino, in the London Borough of Newham (Aspers Westfield Stratford City) was at an advanced stage of development by 30 September 2011 and opened at the end of the year. Table 33: Number of premises by operator Organisation Total casinos at 31 Mar 2009 Total casinos at 31 Mar 2010 Total casinos Total casinos at 31 March 2011 Total casinos at 30 Sept 2011 Rank Group (Grosvenor and G Casinos) Genting UK (Genting Casinos) Gala Coral Group (Gala Casinos) London Clubs International Other operators Total General information about the casino industry Employees Table 34: Casino sector employees Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Number of employees 13,321 13,295 13,252 14,028

31 31 Casino attendance Table 35: Casino attendance Customers (million) Region Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Scotland North Midlands & Wales South London high end Other London Total Table 36: Average industry table numbers Game Tables Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep Card Poker American Roulette Blackjack Casino Stud Poker Dice Electronic Roulette* 3,958 3,687 3,593 3,997 Punto Banco Other** Total 6,036 5,772 5,671 6,190 * this row shows player positions and not tables ** includes new games, less common games, and player positions at electronic multigames terminals.

32 32 Table 37: Casino drop 11 and win by region Region Scotland North Midlands and Wales South High end London* Other London Great Britain total Casinos operating Year Drop % change from previous year House win % change from previous year House win % 16 October 2010 to September % % 15% 15 April 2010 to March % % 15% 15 April 2009 to March % % 16% 14 April 2008 to March % % 16% 41 October 2010 to September % % 15% 41 April 2010 to March % % 15% 38 April 2009 to March % % 15% 38 April 2008 to March % % 14% 37 October 2010 to September % % 15% 39 April 2010 to March % % 15% 38 April 2009 to March % % 15% 38 April 2008 to March % % 14% 29 October 2010 to September % % 16% 29 April 2010 to March % % 16% 27 April 2009 to March % % 15% 28 April 2008 to March % % 16% 6 October 2010 to September , % % 9% 6 April 2010 to March , % % 12% 6 April 2009 to March % % 13% 6 April 2008 to March , % % 15% 17 October 2010 to September , % % 15% 17 April 2010 to March , % % 14% 17 April 2009 to March , % % 15% 19 April 2008 to March , % % 15% 146** October 2010 to September , % % 13% 147** April 2010 to March , % % 14% 141** April 2009 to March , % % 15% 143** April 2008 to March , % % 15% * Six casinos identified by the National Casino Industry Forum (NCIF) - Crockfords, Aspinalls, Clermont Club, The Ritz, Les Ambassadeurs, Maxims Casino. ** The number of casinos that provide table games and therefore supply us with drop and win figures, ie those casinos that do not offer table games (card clubs) do not provide these returns. 11 Drop = money exchanged for gaming chips. Win/house win = amount retained by the casino.

33 33 Table 38: Total drop by game 12 Game type Apr 2008-Mar 2009 Apr 2009-Mar 2010 Drop Apr 2010-Mar 2011 Oct 2010-Sep 2011 American roulette 2, , , , Punto Banco Electronic gaming Blackjack Card Poker Dice Casino Stud Poker Other Total 4, , , , Gaming machines in casinos Table 39: Average gaming machine numbers Machine category Number of machines and terminals Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 B1 2,477 2,438 2,472 2,682 B B Total 2,526 2,477 2,505 2,729 Table 40: Gaming machine GGY Machine category Apr 2008-Mar 2009 Gross gambling yield Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 B B B Aggregated categories* Total * Where GGY figures have been provided but not broken down by machine category. 12 The totals in table 38 are lower than those in table 37 because of false drop, which is drop exchanged for plaques at the cash desk and converted into chips at the table but not then used. This is only recorded for major players and the value is included in the total drop but is not attributable to any game.

34 34 Table 41: Total casino GGY Machine category Apr 2008-Mar 2009 Gross gambling yield Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Casino games Machines Total Fig 11: Casino GGY Machines Casino games Apr Mar 2009 Apr Mar 2010 Apr Mar 2011 Oct Sep 2011

35 35 Location of casinos Table 42: 1968 Act casino permitted areas premises operating under a non-remote casino licence Licensing Area at 31 Mar 2011 at 31 Sep 2011 Licensing area at 31 Mar 2010 at 31 Sep 2011 Licensing Area England England England at 31 Mar 2010 Birkenhead 1 1 Luton 3 3 Sunderland 1 1 Birmingham 7 7 Manchester 6 5 Teesside 1 2 Blackpool 2 2 Margate 1 1 Torbay (Torquay) 1 1 Bolton 2 2 Newcastle-upon-Tyne 3 3 Walsall 2 2 Bournemouth 2 2 Northampton 3 3 West Bromwich 1 1 Bradford 2 2 Nottingham 5 5 Wolverhampton 2 2 Brighton 3 3 Plymouth 2 2 Bristol 4 4 Portsmouth & Southsea 3 3 Wales Coventry 3 3 Ramsgate 1 1 Cardiff 3 3 Derby 2 2 Reading 3 3 Swansea 2 2 Dudley 1 1 Ryde 0 0 Great Yarmouth 3 2 Salford 2 2 Scotland Hove 0 0 Scarborough 2 2 Aberdeen 3 3 Huddersfield 2 2 Sheffield 3 3 Dundee 2 2 Kingston-upon-Hull 2 2 Southampton 3 3 Edinburgh 4 4 Leeds 5 5 Southend-on-sea 3 3 Glasgow 6 7 Leicester 3 2 Southport 1 1 Liverpool 4 4 Stockport 2 2 London Stoke-on-Trent 2 2 * This includes two premises that do not offer table games Act casinos at 31 Sep 2011 Total number of operating casinos 149* 146* Under Section 175(4) of the Gambling Act 2005 (the Act), 16 local council (licensing authority) areas were determined as potential locations for casinos, as follows: One large casino can be 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 at 30 September 2011 no small or large casinos had opened (although the large casino in Newham subsequently opened in December 2011) Act casinos - licences not operational as at 30 September 2011 At 30 September 2011, there could have been a theoretical maximum of Act casinos, comprising 146 casinos operating, 16 casinos licensed but subsequently closed, 27 casinos licensed but not yet operating, but minus three replacement licences. Three casinos which specialise in card room activities are included in the total Act casino permitted areas Areas in which the licensing of premises for casino gaming under the 1968 Act is permitted showing the number of licensed casinos operating on 31 March 2010 and 30 September 2011 are given in table 42 above. New licences for 1968 Act casinos are no longer issued.

36 36 Self exclusions recorded by operators Table 43: Casino sector self exclusions Self exclusions Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Self exclusions 6,081 6,224 6,593 7,229 Known breaches of self exclusion Number of individuals who cancelled their self exclusion after minimum exclusion period 868 1,329 1,403 1,432 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 Table 44: Casino sector age challenges Underage challenges Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Challenged upon entry but unable to prove age Challenged when attempting to gamble but unable to prove age

37 37 Gaming machines, including arcades

38 38 Gaming machines, including arcades Structure of the gaming machine and arcade industry There were 543 Adult Gaming Centre (AGC) licences and 212 Family Entertainment Centre (FEC) licences held by 611 operators as at 31 March There were 76 licences to manufacture gaming machines or gaming machine software and 505 gaming machine supplier licences held under either the Act or under Section 27 of the 1968 Act. Table 45: Number of arcade premises Arcade type Number of premises as at 31 March 2012 Adult Gaming Centre (AGC) 2,247 Family Entertainment Centre (FEC) Table 46: Number of licences - gaming machine manufacturers, suppliers, AGCs and FECs at 31 Mar 2010 at 31 Mar 2011 at 31 Mar Act Section 27 certificate holders Machine suppliers Sub total of above Act Machine manufacturers Adult Gaming Centre (AGC) Family Entertainment Centre (FEC) Figure 13: Breakdown of the arcade sector by GGY market share (October September 2011) FEC 20% AGC 80% 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. 13 Will only include those FECs licensed by the Gambling Commission, excludes those requiring only a permit from local licensing authorities. 14 Section 27 certificate holders must apply for an operating licence under the 2005 Act when their certificate expires.

39 39 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 2011 are: Astra Novomatic Barcrest 15 /IGT Bell Fruit (Danoptra) 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 2011 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 Number of employees Table 47: Gaming machine sector employees Licence type Number of employees Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 AGC 12,693 13,323 11,362 9,797 FEC 16 3,806 3,237 2,852 2,757 Gaming machine technical 9,867 9,267 8,466 7,151 Totals 26,366 25,827 22,680 19, Barcrest is now owned by Global Draw and is no longer linked to IGT. 16 Will only include those FECs licensed by the Gambling Commission, excludes those requiring only a permit from local licensing authorities.

40 40 Gaming machines in AGCs and FECs Table 48: Average AGC machine numbers Machine category Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 B3 10,018 10,197 8,772 8,582 B C 42,373 39,822 31,199 29,632 D 19,709 20,162 18,570 17,471 Total 72,294 70,356 58,747 55,871 Table 49: AGC machine GGY Machine category Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 B B C D Aggregated categories* Total *Where GGY figures have been provided but not broken down by machine category. The decline in employee numbers, average AGC machine numbers and AGC machine GGY from April 2010 onwards (see table 47, 48 and 49) is a result of the conversion of a significant number of AGC premises into Bingo premises. As a result, employee numbers, AGC machine numbers and AGC machine GGY have reduced. Employee numbers and average machine numbers in bingo clubs have increased over the same period. Table 50: Average licensed FEC machine numbers Machine category Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 C 3,491 3,227 3,022 2,837 D 27,521 28,409 27,149 28,243 Total 31,012 31,636 30,171 31,080 Table 51: Licensed FEC GGY Machine category Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 C D Aggregated categories* Total *Where GGY figures have been provided but not broken down by machine category.

41 41 Self exclusions recorded by operators Table 52: Sector self exclusions Licence type Apr Mar 2009 Apr Mar 2010 Self exclusions Apr Mar 2011 Oct Sep 2011 Self exclusions AGC 2,709 3,021 2,771 2,761 Known breaches of self exclusion Number of individuals who cancelled their self exclusion after minimum exclusion period FEC AGC FEC AGC FEC 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 Table 53: Arcade sector age challenges Challenged upon entry but unable to prove age Licence type Apr Mar 2009 Apr Mar 2010 Self exclusions Apr Mar 2011 Oct Sep 2011 AGC 7,440 12,874 5,999 24,662 FEC N/A N/A N/A N/A Challenged when attempting to gamble but unable to prove age AGC ,367 FEC* *Children are allowed in FECs.

42 42 Lotteries

43 43 Lotteries Lotteries Structure of the lotteries industry As at 31 March 2012, there were a total of 486 non-commercial society lottery operators holding 718 lottery licences. Those licences comprised 485 non-remote lottery operating licences and 233 remote 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 at 31 March 2012, there were 36 ELMs holding 50 licences. Those licences comprised 32 non-remote ELM operating licences and 18 remote ELM operating licences. Table 54: Lottery licences Licence Type at 31 Mar 2010 at 31 Mar 2011 at 31 Mar 2012 Society lotteries Non-remote Remote ELMs Non-remote Remote General information about lotteries Society lotteries Table 55: Total lottery proceeds, expenses and prizes (includes ELM managed lotteries) Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Prizes from proceeds* Expenses Balance (to good causes) Total proceeds *Excludes prizes from rollovers.

44 44 Society lotteries managed by external lottery managers As an ELM operates on behalf of a society lottery, the proceeds from ELM lotteries presented below represent a subset of the total proceeds shown in table 55 (they are not additional proceeds). Table 56: ELM managed lottery proceeds, expenses and prizes 18 ELM managed lotteries Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Prizes from proceeds* Expenses Balance (to good causes) Total proceeds *Excludes prizes from rollovers. Employees Table 57: ELM employees Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Number of employees ,510 1,412 There are a number of explanations for the large increase in ELM employee numbers from April 2010 onwards. A significant portion of this is attributed to the growth in the number of new ELM s trading around this time. The numbers also reflect the use of seasonal and part-time staff within this sector. Gambling where individuals were unable to prove their age 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. 18 Does not include those ELM managed lotteries registered with local authorities

45 45 Remote betting, bingo and casino

46 46 Remote betting, bingo and casino Remote gambling industry The estimates provided in tables 58 and 59 below are provided courtesy of H2 Gambling Capital ( It is estimated that global remote gambling GGY (excluding telephone betting) was 20.1 billion 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 2 billion. Table 58: The global remote industry (excludes telephone betting) Jan 2009-Dec 2009 Jan 2010-Dec 2010 Jan 2011-Dec 2011 % change 2010 to 2011 GGY 14,880 16,670 18,270 10% Table 59: The UK consumer remote industry Jan 2009-Dec 2009 Jan 2010-Dec 2010 Jan 2011-Dec 2011 % change 2010 to 2011 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 in reliance on a Commission licence, is made up primarily as follows: some of the large and familiar high street bookmakers that offer remote gambling (for example, Gala Coral Group) large remote-only operators smaller betting operators that operate remote gambling facilities themselves smaller betting operators that have their remote operations hosted by third parties 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 at 31 March 2012 there were 288 remote gambling activity licences held by 207 operators. Table 60: Breakdown of remote gambling activities licensed by the Commission Activity at 31 Mar 2010 at 31 Mar 2011 at 31 Mar 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

47 47 General information about remote betting, bingo and casino Since the initial decrease in remote sector GGY from m to m between the year to March 2009 and the year to March 2010 (this includes both UK and overseas consumer activity conducted in reliance on a Commission licence), it has increased for each subsequent period for which data has been collected. The initial decrease (23%) was due to the relocation of significant UK brands overseas. The increase since then is primarily attributable to growth by existing operators rather than new entrants to the market. We expect the GGY from Commission licensed operators to decline in the future as the effect of Betfair moving offshore is seen in regulatory returns data. The start of this trend can be seen in the betting exchange figures in table 62. Further relocations of operators overseas cannot be ruled out. Table 61: Remote sector turnover 19 Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Betting 10, , , , Bingo Casino Total 11, , , , Fig 15: Amount wagered on remote gambling activities (excluding betting exchanges) 16, , , , , , Casino Bingo Betting 4, , Apr Mar 2009 Apr Mar 2010 Apr Mar 2011 Oct Sep Figures only relate to UK operators licensed by the Commission who are operating in remote markets.

48 48 Gross gambling yield Table 62: Remote sector GGY including betting exchanges Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 General Betting Betting Exchange Bingo Casino Total Fig 16 GGY from remote gambling activities (including betting exchanges) Apr Mar 2009 Apr Mar 2010 Apr Mar 2011 Oct Sep Casino Bingo Betting exchange General betting Apr Mar 2009 Apr Mar 2010 Apr Mar 2011 Oct Sep 2

49 49 Table 63: Remote betting sector GGY breakdown Betting Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Football Horses Dogs Other Total Table 64: Remote casino sector GGY breakdown Casino Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Card Game Table Game Peer to Peer Slots Other Total General information about remote betting, bingo and casino Employees Table 65: Remote sector employees Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Number of employees 8,918 7,465 6,800 7,043 Customer accounts Table 66: Number of customer accounts and funds held Customer accounts (for Commission licensed facilities) millions Active customer accounts millions New player registrations millions Funds held in customer accounts Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep

50 50 Self exclusions recorded by operators Table 67: Remote sector self exclusions Self exclusions Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Self exclusions 46,359 39,763 35,322 36,764 Known breaches of self 7,198 7,444 2,619 2,629 exclusion Number of individuals who cancelled their self exclusion after minimum exclusion period 1,540 1,483 1,656 1,637 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 site or operator and thus been counted more than once. The number of breaches represents the number of separate incidents, rather than the Gambling where individuals were unable to prove their age Table 68: Remote sector age challenges Underage challenges Apr 2008-Mar 2009 Apr 2009-Mar 2010 Apr 2010-Mar 2011 Oct 2010-Sep 2011 Challenged upon entry N/A N/A N/A N/A but unable to prove age Challenged when attempting to gamble but unable to prove age Gambling software Table 69: Gambling software income Sales Shared income Oct 2010-Sep 2011 Oct 2010-Sep 2011 Game Platform Other Total The Commission now collects data on gambling software licence holders following the introduction of a new regulatory return. Gambling software licence holders had total sales of million and revenue share income of million from their licensable activities in the year to September 2010/11.

51 51 Appendix 1

52 52 Appendix 1 Appendix 1 Regulatory returns analysis (methodology) Regulatory returns must be completed annually by most operators and quarterly by some operators (the large betting operators, casino and remote operators). The date on which returns fall due depends on the date chosen by the particular licence holder, for example, it may coincide with an organisation s own reporting cycle, may be on an annual calendar year basis or run from 1 September to 31 August in line with the date that the Act came into force. In addition: annual regulatory returns must be submitted within 42 days of the date on which the return falls due quarterly returns must be submitted within 28 days of the date on which the return falls due lottery submissions must be made within 90 days of a draw being made or of the last scratch-card being sold. This means that in some instances the Commission has had to provide estimated figures for the period 1 October 2010 to 30 September The diagram below indicates how we make that estimation. When providing figures covering a particular period, the Commission includes all returns that fall wholly or partially within that reporting period. For each operator that submits an annual return, a weighted average is calculated based on the number of days each of the two returns relates to the reporting period. No such calculation is required for quarterly submitted returns as they fall wholly within the reporting period. Where an operator s annual returns cover only part of the period in question the figure has been adjusted to produce an estimate for the full year. For example, an operator with a reporting year running to 30 June will not yet have provided data for the latter three months of the period 1 October 2010 to 30 September 2011 (return due 10 November 2011); in this case the annual figures on the return to 30 June 2010 have been taken as a proxy for the 12 months. Regulatory returns covering 1 April 2010 to 31 March days Regulatory returns covering 90 days Regulatory returns covering 275 days Regulatory returns covering 90 days (estimated) Regulatory returns covering 1 January 2010 to 31 December days Regulatory returns covering 1 January 2011 to 31 December 2012 not yet due 1/1/2010 1/4/ /12/2010-1/1/ /3/ /12/2012 Merger acquisitions are commonplace in some sectors of the gambling industry. This could result in some duplication of data provided in regulatory returns.

53 53 Appendix 2

54 54 Appendix 2 Appendix 2 Terminology Account - an account represents an entity (for example, public limited company, limited company, partnership, individual) that holds an operating licence. Gross gambling yield (GGY) - the amount retained by operators after the payment of winnings but before the deduction of the costs of the operation. Licence - an account may incorporate one or more licences. There are three types of licence that an operator account can hold and these are non-remote, remote and ancillary. Licensed activity - a licensed operator may be authorised to carry out one or more licensed activity. A licensed activity is the actual type of gambling/gaming function permitted through an operating licence in a particular sector such as bingo or a lottery. Sector there are six industry sectors regulated by the Commission arcades and gaming machines, betting, bingo, casinos, lotteries and remote (which includes remote betting, bingo and casinos) A number of licensed activities may take place within each sector.

55 55

56 56 keeping gambling fair and safe for all For further information or to register your interest in the Commission please visit our website at: Copies of this document are available in alternative formats on request. Gambling Commission Victoria Square House Victoria Square Birmingham B2 4BP T F E [email protected] Gambling Commission Published June 2012 AR 12/02