Casino Insights & Trends
May 2011
Contents
Market Environment
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.
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, 2005-15
1,400
1,200
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 2009.
1,000
£m
800
600
400
200
0
2005
2006
2007
2008
2009
2010
(est)
at current prices
Source: Gambling Commission/Mintel
2011
(fore)
2012
(proj)
at 2010 prices
2013
(proj)
2014
(proj)
2015
(proj)
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, 2006-10
1400
1200
1000
£m
800
600
400
200
0
2006
2008
Land-based casinos
Source: Gambling Commission/Mintel
2010 (est)
Online casinos
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
Where Do We Play Online?
Most popular online casinos, July 2010
• 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.
Williamhill.com
Ladbrokes.com
888.com
Betfair.com
Paddypower.com
Coral.co.uk
Bet365.com
• 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.
Jackpotjoy.com
PartyGaming websites (eg
PartyPoker, PartyCasino etc)
Winner.com
Other online gambling website
0
5
10
15
20
25
% of respondents
Base: 206 internet users aged 18+ who play online casinos
Source: GMI/Mintel
30
35
40
45
Ad Market & Traffic Trends
Gambling AdSpend
Gambling operators’ UK adspend, 2006-2010
• Monthly average adspend is
currently above that of 2008
and 2009 as operators compete
for share in a maturing market.
160,000
140,000
120,000
• 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.
100,000
£000
80,000
60,000
• Television and press advertising
receive the most adspend in a
reflection of their ability to reach
the mass market that
mainstream operators seek.
40,000
20,000
0
2006
2007
* Projected
Source: Nielsen Media Research/Mintel
2008
2009
2010*
Gambling Spend by Media
* Internet does NOT include Search spend. Display only according to Nielsen
Source: NNR adDynanix : Jan – December 2010
Gambling Search Traffic KPIs
Traffic
• Searches for gambling and gambling related
terms increased by +38% in 2010 compared to
2009.
• Searches for gambling terms increased by
+31% Jan & Feb 2011 v Jan & Feb 2010.
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
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 25 – 34 and 35-49 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
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 18-24
and 25-34 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 2010 - % of all IMP/CLK/Con
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
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
Top Gambling Advertisers (March 2011)
Source: ComScore adMetrix : March 2011
Gambling spend – monthly average (£)
Microsoft users spend £37/ month on gambling, £4 more than the UK average of £33
£40
£35
£33 – UK
average
£30
£25
£20
£15
£10
£5
£0
WL/ MSN/ Bing
AOL
Google
TGI GB Q1 2011 Base: 18+ average gambling spend (monthly), excludes lotto
Virgin Media
Orange
Yahoo!.com
Portal Performance: Heavy Gamblers
Microsoft reaches 93% of Heavy Gamblers. Avg Mins per visit are 18% greater than the nearest
competitor, AOL
100.0
12.0
% reach
90.0
80.0
% Reach
70.0
10.0
8.0
60.0
50.0
6.0
40.0
4.0
30.0
20.0
2.0
10.0
0.0
0.0
Microsoft
Yahoo!
comScore March 2011 – Segment Metrix: Heavy Gamblers
Sky Portal
AOL, Inc
Virgin Media
Avg Mins Per Visit
Avg Mins Per Visit
Industry Insights
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
0
5
10
15
20
% of respondents
Base: 605 adults aged 18+ who have visited or would like to visit a casino
Source: Ipsos MORI/Mintel
25
30
35
Who Plays Online Casinos?
% of respondents
Online casino play in context, July 2010
• 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.
100%
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
Other online
gambling (eg
play online
scratchcards, do
National Lottery
online)
Have done but not in last year
Occasionally (less than once a month but at least once in the last year)
Regularly (at least once a month)
Base: 1,931 internet users aged 18+
Source: GMI/Mintel
• 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.
Why Do We Play Casino Games Online?
Attitudes towards online casinos, July 2010
• Financial incentives and
familiarity are the main
drivers of consumer
choice in casino visiting.
I often join up to new sites if they offer free
bets/credits
I prefer to stick to a brand I know and trust
• These motivations differ
significantly from those of
land-based players, for
whom facilities and
games are most
important.
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
0
10
20
30
40
% of respondents
Base: 206 internet users aged 18+ who play online casinos
Source: GMI/Mintel
50
60
• 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.
Lapsed Players – Why Did They Stop?
Reasons for stopping online casino gambling, July 2010
• Four of the five most
commonly cited reasons for
stopping playing casino
games online are financial
ones.
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
• Expectations of winnings
clearly drive much
participation – leaving
disappointed customers
vowing not to return when
they discover the house
usually takes its share.
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)
• Loss of interest in gambling is
likely another manifestation of
the same effect – losing
money tends to dull the
enthusiasm.
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
0
5
10
15
20
25
% of respondents
Base: 141 internet users aged 18+ who no longer play online casino games
Source: GMI/Mintel
30
35
40
Non-players Attitudes to Online Casinos
Reasons for never having played online casino games, July 2010
• As in the land-based sector,
lack of interest in gambling is
the main reason why
consumers choose not to play
casino games online.
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
• Unfamiliarity is at the root of
many of the issues nonplayers have with online
casinos.
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'
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
0
10
20
30
40
50
60
% of respondents
Base: 1,584 internet users aged 18+ who have not participated in online gambling in the last year
Source: Ipsos MORI/Mintel
• 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.