Gambling Commission - Industry statistics 2009/10

Industry statistics 2009/10

07/08/09/10

Gambling Commission - Industry statistics 2009/10

Contents

Preface Introduction Market size Gamblers Problem gambling Betting Bingo Casinos Gaming machines including arcades Lotteries Remote Appendix 1 - Regulatory returns analysis Appendix 2 - Terminology Appendix 3 - Useful contacts

3 4 4 4 5 6 10 13 18 21 23 25 26 27

Gambling Commission - Industry statistics 2009/10

Gambling industry data

Preface
1. Detailed statistics relating to the gambling industry in Great Britain have been collated mainly from the Gambling Commission (the Commission) regulatory returns made by licensed operators to the Commission, and from data from gambling industry trade bodies. Regulatory returns must be completed by all licensed gambling operators on either an annual or quarterly basis. Data within this report covers the financial year period 1 April 2009 to 31 March 2010 unless stated otherwise. The information contained in this document covers betting, bingo, casinos, arcades and gaming machines, lotteries and remote gambling. It does not cover the National Lottery (except as a comparison) or spread betting. All figures for 2008/09 are final. Differences between the provisional 2008 figures already published and 2008/09 figures finalised in this document are a result of: a) a change in the reporting period from calendar year (2008) to fiscal year (1 April 2008 - 31 March 2009) b) further analysis of the regulatory returns data which identified errors made by operators when submitting data c) the provisional data included estimations based on data received (see appendix 1) while the final figures are taken from a more complete set of data received from the industry. All 2009/10 figures are provisional, and therefore subject to amendment within future industry statistics publications, because: a) not all returns for the period have yet been received b) in some instances, the Commission has had to provide estimated figures (see appendix 1) - these figures are highlighted in italics c) some returns are subject to outstanding queries. The terminology used in this document is detailed at Appendix 2. Further statistics and information relating to the Commission and its activities are contained in the annual report for the financial year 1 April 2009 to 31 March 2010, available on the Commission website at www.gamblingcommission.gov.uk

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Gambling Commission - Industry statistics 2009/10

Gambling industry data

Introduction
Market size
During 2009/10 the British gambling industry, as regulated by the Commission, generated a gross gambling yield (GGY - see Appendix 2) of 5.7 billion. This represents a 1% reduction on the previous year and reflects a trend present across all but the non-remote betting and lottery sectors. The non-remote betting sector represents the largest market within the industry with a 53% share, followed by the casino (14%) and bingo sectors (12%).

Fig 1: Gross gambling yield by sector

Fig 2: Licences by sector

Figure 2 reflects the makeup of the industry by operating licences as of April 20101. The number of Commission operating licences in force reduced by 171 to 3,997 compared to the same point during the previous year, representing a 4% reduction.

Fig 3: Changes in operator licences by sector

Gamblers
Participation in gambling activities (2007 British Gambling Prevalence Survey) The British Gambling Prevalence Survey (BGPS), carried out by NatCen on behalf of the Commission, sampled over 9,000 adults between 2006 and 2007 and was published in September 2007. It showed that 68% of the population (about 32 million adults) had participated in some form of gambling activity within the past year. Excluding people who had only gambled on the National Lottery in the last year, 48% of the population (about 23 million adults) had participated in another form of gambling in the past year. The most popular gambling activities in Britain in 2007 were the National Lottery Draw (57% had participated in the past year), scratchcards (20%), betting on horse races (17%) and playing slot machines (14%). Only a small proportion of people took part in the new forms of gambling available in Britain: for example 3% played on B2 gaming machines and 6% of people used the internet to gamble2 (3% did online gaming like playing poker or casino games and 4% placed bets with a bookmaker).
1 Omits B2B licences for comparison.

Gambling Commission - Industry statistics 2009/10

Gambling industry data

A further BGPS was completed in 2010 and the results are due to be published in February 2011. Participation in gambling activities (omnibus survey results) The Commission has been using a quota sample omnibus survey to provide information on participation in gambling 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 which monitors participation solely in remote gambling. The data is published each quarter, currently based on an updated sample of 8,000 interviews (for each set of questions) 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 which looks at respondents gambling activity over the past week and past year. Participation in all gambling activities (an average of figures for the year to 31 March 2010*) 54.7% of the 8,000 adults surveyed said they had participated in at least one form of gambling in the previous four weeks. This figure of 54.7% compares with the 2009 calendar year figure of 55.2%. Questions measuring participation in all gambling activities were first introduced in 2009 (following initial trials in 2008), therefore the earliest available complete calendar year for this dataset is 2009. The most popular gambling activity was the National Lottery (45.4% of respondents), followed by National Lottery scratchcards (10.5%) and tickets for society or other good cause lotteries (9.9%). Betting on horse races, private betting and gaming with family and friends, and fruit or slot machine gambling were the next most popular activities (3.5%, 3.3% and 3.1% respectively). Participation in remote gambling (an average of figures for the year to March 2010*) Most remote gambling available to the British public is provided by operators based outside Britain and therefore not regulated by the Commission. 10.7% of the 8,000 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 10.7% compares with the 2009 calendar year figure of 10.5%, the 2008 calendar year figure of 9.7%, the 2007 calendar year figure of 8.8% and the 2006 calendar year figure of 7.2%. The growth in participation in remote gambling is explained very largely by increased online participation in the National Lottery. If those only playing National Lottery products remotely are excluded, 5.7% of respondents had participated in remote gambling in the year to March 2010, compared with 5.7% in 2009, 5.6% in 2008, 5.2% in 2007 and 5.1% in 2006. Overall, in the year to March 2010, 8.5% of respondents said they had purchased tickets remotely for the National Lottery draw in the previous four weeks (either only or in addition to other types of gambling activity). Remote gambling via a computer, laptop or handheld device was most popular (9.4% of all respondents), followed by gambling via mobile phone (2.8%) and interactive/digital TV (1.7%).
* As the omnibus survey results are published quarterly, more up-to-date information is available at www.gamblingcommission.gov.uk.

Problem gambling
BGPS 2007 measured the levels of problem gambling in the adult population in Great Britain using two internationally recognised scales, the Diagnostic and Statistical Manual of Mental Disorders 4th edition (DSM IV), and the Canadian Problem Gambling Severity Index (PGSI). This allowed us to check for reliability within our survey and to compare our findings with those found in similar studies around the world. The DSM IV screen found that the rate of problem gambling in the adult population was 0.6%3 which equates to about 284,000 adults. This is the same percentage of the population that DSM IV identified in 2000. The PGSI screen identified 0.5%4 of the adult population with a gambling problem, or around 236,000 adults.

2 Using at least one form of online gambling. 3 To tolerance limits 0.5%-0.8%. 4 To tolerance limits 0.4%-0.8%.

Gambling Commission - Industry statistics 2009/10

Betting
Structure of the betting industry
The non-remote betting industry is made up of both on-course and off-course betting operators. As at 31 March 2010, 590 individuals or organisations were licensed for the activity non-remote general betting standard (off-course) and 681 for the activity non-remote general betting limited (on-course). 23 operators were licensed for non-remote pool betting as one of their activities. This industry is dominated by five operators that account for 7,322 (over 80%) of all betting shops. The approximate numbers of betting shops (excluding Northern Ireland) operated by each of these operators is as follows: Table 1: Number of betting shops by operator Organisation Ladbrokes William Hill Gala Coral Group Betfred Tote Other Total Total betting shops5 2008/09 2,080 2,228 1,630 808 516 1,600 8,862 2009/10 2,073 2,263 1,645 829 512 1,500 8,822 -<1% 2% 1% 3% -<1% -6% -<1% Percentage change

General information about the betting industry

Employees
Table 2: Number of employees within the betting sector 2008/09 Number of employees (FTE )
6

2009/10 40,812 58,418 39,710 55,775

% change -3% -5%

Number of employees (headcount)

Off-course betting
Table 3: Off-course betting turnover Turnover (2008/09) m Dogs Football Horses Number Other Total 1,511 913 5,530 840 778 9,572 Turnover (2009/10) m 1,410 955 5,448 853 570 9,236 -7% 5% -1% 2% -27% -4% % change Gross profit (2008/09) m 290 225 807 162 111 1,595 Gross profit (2009/10) m 277 154 760 167 85 1,443 % change Number of bets million (2008/09) 255 158 831 344 109 1,697 Number of bets million (2009/10) 211 157 749 328 65 1,510 % change

-4% -32% -6% 3% -23% -10%

-17% -1% -10% -5% -40% -11%

5 Figures for the major five bookmakers obtained from the companies concerned. 6 Full time equivalent.

Gambling Commission - Industry statistics 2009/10

Betting
Off-course betting turnover Off-course betting gross profit

Fig 4: Off-course betting turnover

Fig 5: Off-course gross profit

On-course betting
Table 4: Number of on-course operator days 2008/09 Number of on-course operator days Table 5: On-course betting turnover Turnover Turnover (2008/09) (2009/10) m Dogs Horses Other Total 49 281 9 339 m 37 268 12 317 -24% -5% 33% -6% % change Gross Gross profit profit (2008/09) (2009/10) m m 4 24 0.5 29 3 23 1.8 28 % change Number Number of bets of bets million million (2008/09) (2009/10) 6 35 0.6 42 3 27 0.9 31 % change 57,845 2009/10 53,541 % change -7%

-25% -4% 260% -2%

-50% -23% 50% -25%

On-course betting turnover

On-course betting gross profit

Fig 6: On-course betting turnover

Fig 7: On-course gross profit

Gambling Commission - Industry statistics 2009/10

Betting
Pool betting
Table 6: Pool betting turnover Turnover Turnover (2008/09) (2009/10) m Dogs Football Horses Other Total 55 59 378 1.7 494 m 42 57 356 1.7 457 -24% -3% -6% 0% -7% % change Gross Gross profit profit (2008/09) (2009/10) m m 15 47 85 0.2 147 12 45 78 <0.1 135 % change Number Number of bets of bets million million (2008/09) (2009/10) 37 34 0.2 71 26 29 0.2 56 % change

-20% -4% -8% -88% -8%

-30% -15% 0% -21%

not available on a comparable basis

Fig 8: Pool betting turnover

Fig 9: Pool gross profit

Gaming machines in betting shops

Table 7: Gaming machine turnover and gross profit Machine category B2 B3 B4 C D Aggregated categories* Total 32,934
*where gross profit figures have been provided but not broken down by machine category.

Machines (2009/10) 32,074 612 14 215 19

Gross profit (2009/10) m 1,266 13 0.1 1.4 0.5 7 1,288

GGY 2008/09 m Over the counter* Machines Total 1,772 1,081 2,853

GGY 2009/10 m 1,606 1,288 2,894

* over the counter includes on-course and non-remote pool bets as well as non-remote fixed odds betting.

Fig 10: Betting sector breakdown of GGY

Fig 10a: Betting sector breakdown of GGY

Gambling Commission - Industry statistics 2009/10

Betting
Self exclusions recorded by operators
Table 8: Betting sector self exclusions 2008/09 Self exclusions Known breaches of self exclusion Number of individuals who cancelled their self exclusion after minimum exclusion period 11,411 3,979 1,200 2009/10 16,107 8,366 1,832 % change 41% 110% 53%

The numbers of people who have self excluded and the numbers 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

There were 519,452 recorded incidents when someone was challenged on entering a betting premises and was unable to prove their age7. In addition, 70,184 incidents were recorded of someone who attempted to gamble, or gambled, on a betting premises and, when challenged, was unable to prove their age.

Integrity in betting*
108 cases of suspicious betting activity have been reported to the Commission between 1 September 2007 and 31 March 2010, including 37 new cases since 1 October 2009. Of these, 74 were reported by betting operators under licence condition 15.1 in the first instance with 34 coming from other sources, for example sports governing bodies, the media or the public. In 60 of these cases the grounds for suspicion of criminal activity have not been substantiated following an initial consideration. A breakdown of the activities involved in those cases is provided below. Of the remainder, nine cases are still at the preliminary assessment stage, 31 cases have been passed to the relevant sports governing body8 for investigation and there are eight active investigations in which the Commission is involved. Table 9: Suspicious betting activity (1 September 2007 to 31 March 2010) Activity Cases closed to 30 September 2009 1 1 2 12 1 2 9 1 5 2 2 38 Cases closed 30 September 2009 31 March 2010 1 4 1 2 1 2 10 1 22 Total cases closed to 31 March 2010 1 1 1 2 16 1 3 11 2 7 12 3 60

Bowls Boxing Cricket Darts Football Golf Greyhound racing Horseracing Rugby league Snooker Tennis Non-sport Total

* betting integrity figures are published twice a year so more up to date information is available at www.gamblingcommission.gov.uk 7 It is illegal for anyone under the age of 18 to enter a betting premises. 8 Sports Governing Bodies (SGBs) are responsible for ensuring compliance within their own sport. One of the results of the Sports Betting Integrity Panel report published in February 2010 was the setting up of a new Code of Conduct on integrity in sports in relation to sports betting that includes minimum standards which all sports shall observe and cover in their rules on betting.

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Gambling Commission - Industry statistics 2009/10

Bingo
Structure of the industry
As at 31 March 2010 228 operators held licences for non-remote bingo activities broken down as follows: Table 10: Number of bingo licensees and premises as at 31 March 2010 at 31 March 2010 Type of licence holder Bingo clubs AGCs converted to bingo clubs during the year Total bingo clubs Holiday parks Working mens clubs Total Table 11: Bingo clubs Organisation Buckingham Bingo Ltd Carlton Clubs plc Gala Coral Group Rank Group - Mecca Bingo Ltd Top Ten Bingo Independent/small operators Total Total premises at 31 March 2009 11 14 158 102 36 307* 641* Total premises at 31 March 2010 10 14 146 103 24 199 496 % change -9% 0% -8% 1% -33% Non remote bingo licences 101 31 132 20 76 228 Total premises 496 72* 5709 112 76 756

* this includes 10 AGCs that were converted into bingo clubs during the year by two organisations that already have a number of bingo clubs.

* 2008/09 total includes converted AGCs, holiday parks and working mens clubs.

Table 12: AGCs converted to bingo clubs at 31 March 2010 at 31 March 2010 Organisation Cashino Gaming Ltd Namco Operations Europe Ltd Thomas Estates Ltd Thurston UK Ltd Independent/small operators Total Table 13: Holiday parks, bingo licensees at 31 March 2010 at 31 March 2010 Organisation Haven Leisure Limited Park Holidays UK Ltd Park Resorts Ltd Independent/small operators Total
9 77 bingo clubs operate more than one licensed bingo premises from the same location.

Total premises 10 8 8 8 38 72

Total premises 31 27 17 37 112

Gambling Commission - Industry statistics 2009/10

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Bingo
General information about the bingo industry
Despite a reduction in bingo sales during 2009/10 (see figure 11), employment within the sector has remained at the same level. Gross gaming sales have reduced year on year since 2007/08. Performance has been more positive for gaming machines gross profit within the sector which recorded a 7% increase during 2009/10.

Employees
Table 14: Bingo sector employees 2008/09 Number of employees (FTE )
10

2009/10 11,872 16,922

% change -3% -2%

12,242 17,332

Number of employees (headcount)

Bingo turnover
Table 15: Bingo turnover by activity Gross gaming sales 2008/09 m Main Stage Bingo Mechanised Cash Bingo National Game Prize Bingo Total 724 550 49 105 1,428 Gross gaming sales 2009/10 m 708 563 33 55 1,359 % change Participation fees 2008/09 m -2% 2% -33% -48% -5% 167 258 9 61 495 Participation fees 2009/10 m 172 250 7 33 462 3% -3% -22% -46% -7% % change

Fig 11: Bingo sales by game type

Figure 12: Bingo participation fees by game type

Table 16: Year on year bingo sector GGY 1 April to 31 March 2008/2009 2009/2010 Gross gaming sales m 1,428 1,359 % change from previous year -12% -5%

10 Full time equivalent.

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Gambling Commission - Industry statistics 2009/10

Bingo
Gaming machines in bingo clubs
Table 17: Gaming machine gross profit Machine category B3 B4 C D Aggregated categories** Total 17,987 Machines (2009/10)* 3,046 316 13,067 1,558 Gross profit (2009/10) m* 50 1.9 60 1.8 100 214

*figures taken from regulatory returns. As we do not regulate pubs, clubs, working mens clubs or FECs that dont have adult areas - data from those sectors is not included in this table. **where gross profit figures have been provided but not broken down by machine category.

Self exclusions recorded by operators

Table 18: Bingo sector self exclusions 2008/09 Self exclusions Known breaches of self exclusion Number of individuals who cancelled their self exclusion after minimum exclusion period 337 36 92 2009/10 294 21 87 % change -13% -42% -5%

The numbers of people who have self excluded and the numbers 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

There were 27 recorded incidents when someone attempted to gamble, or gambled, on a bingo premises and, when challenged, was unable to prove their age11.

11 It is illegal for anyone under the age of 18 to gamble on a bingo premises.

Gambling Commission - Industry statistics 2009/10

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Casinos
Structure of the casino industry
There were 141 casinos operating at 31 March 2010. Three companies own the majority of casinos in the industry, namely the Gala Coral Group with 27 casinos, the Rank Group (Grosvenor Casinos and G Casinos) with 35 casinos and Genting UK (Genting Casinos) with 44 casinos. One operating licence has been issued by the Commission in 2009/10 in respect of the proposed eight small and eight large casinos under the 2005 Act. As at 31 March 2010, three 2005 Act casino licences were held by operators. One local authority advanced to the stage of inviting applications from potential operators and a number of others are expected to follow suit during 2010/11. To date no premises licences have been issued (see page 16 for details of locations). Table 19: Casino ownership by operator Total casinos at 31 March 2009 Gala Coral Group Genting UK (Genting Casinos) London Clubs International Rank Group (Grosvenor and G Casinos) Other operators Total 27 45 11 32 30 145 Total casinos at 31 March 2010 27 44 10 35 25 141 % change 0% -2% -9% 9% -17% -3%

General information about the casino industry

Casino drop and win have both declined this year but attendance has increased during the year. Although there has been a slight decline in numbers of gaming machines in casinos, gross profit from machines has increased. However table games remain the principal gambling activity in the sector, accounting for around 85% of income.

Employees
Table 20: Casino sector employees 2008/09 Number of employees (FTE )
12

2009/10 12,082 13,585 11,826 13,696

% change -2% 1%

Number of employees (headcount)

Casino attendance
Table 21: Casino attendance Scotland North Midlands & Wales 4.7 4.8 3.9 3.9 South Other London 2.9 2.9 3.5 3.6 London high end 0.136 0.154 Total

Millions 2008/09 2009/10 1.5 1.7 16.6 17.1

There were over 17 million visits to casinos in Great Britain between April 2009 and March 2010, an increase of 400,000 over the previous year.

12 Full time equivalent

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Gambling Commission - Industry statistics 2009/10

Casinos
Gaming machines in casinos
Table 22: Casino machine gross profit Machine category B1 B2 B3 Aggregated categories* Total
*where gross profit figures have been provided but not broken down by machine category.

Machines (2009/10) 2,713 38 10 2,769

Gross profit (2009/10) m 136 0 0 1 137

Gross profit from gaming machines increased by 19% during 2009/10 compared to the previous 12 months. Following a 5.5% reduction in the house win on table games, machines now account for 18% of GGY within the sector.

Fig 13: Gross gambling yield casino machines

Rolling monthly average casino drop and attendance (last 12 months)

Fig 14: 12 month rolling average casino drop and attendance

Gambling Commission - Industry statistics 2009/10

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Casinos
Drop and Win13
Table 23: Year on year casino drop and win by region Region Casinos operating Year 1 April to 31 March Scotland North Midlands and Wales South High end London* Other London Great Britain total 15 14 38 38 38 38 27 28 6 6 17 19 141 143 2009/10 2008/09 2009/10 2008/09 2009/10 2008/09 2009/10 2008/09 2009/10 2008/09 2009/10 2008/09 2009/10 2008/09 Drop % change House win % change House win

m 212 212 654 669 570 588 400 415 987 1,000 1,567 1,645 4,391 4,529 0% 5% -2% 0% -3% -1% -4% -11% -1% 16% --5% 1% -3% 2%

m 33 34 97 96 83 84 61 66 128 151 238 247 641 679 -2% 5% 1% -6% -2% -4% -7% -11% -15% 36% -4% -1% -5% 3%

% 16 16 15 14 14 14 15 16 13 15 15 15 15 15

* Six casinos identified by the National Casino Industry Forum (NCIF) - Crockfords, Aspinalls, Clermont Club, The Ritz, Les Ambassadeurs, Maxims Casino.

The drop figures above do not include monies wagered on the Casino Stud Poker progressive jackpot Table 24: Total drop by game*
1 April to 31 March Electronic Roulette m American Roulette m Blackjack Trial and other Games m Casino Stud Poker m Craps Punto Banco m Three Card Poker m Electronic Multigame m Total

2009/10 2008/09

743.3 730.3

2,140.0 2,257.9

713.2 775.1

23.7 23.8

8.7 14.9

13.2 17.9

426.1 400.7

189.9 207.4

6.1

4,264.2 4,428.0

* these figures do not include figures for unallocated drop.

Over 30 trials of new casino games and games variants were undertaken during the year.

13 Drop = money exchanged for gaming chips. Win/house win = amount retained by the casino.

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Gambling Commission - Industry statistics 2009/10

Casinos
Location of Casinos
2005 Act Casinos
Under Section 175(4) of the Gambling Act 2005, 16 local council (the licensing authority) areas were determined as potential locations for casinos, as follows. One large casino can be permitted to be licensed in each area of: Great Yarmouth; Kingston-upon-Hull; Leeds; Middlesbrough; Milton Keynes; Newham; Solihull; and Southampton. One small casino can be permitted to be licensed in each area of: Bath and North East Somerset; Dumfries and Galloway; East Lindsey; Luton; Scarborough; Swansea; Torbay; and Wolverhampton. At 31 March 2010 no premises licences had been issued for new casinos by the licensing authorities concerned.

1968 Act Casinos - licences not operational as at 31 March 2010

19 licensed but closed 30 licensed but not operating (of which 3 are extensions to, or replacements for, existing licences). The position at 31 March 2010 was that there could be a theoretical maximum of 187 (141 casinos currently operating plus 19 licensed but currently closed, plus 30 licensed but not operating, minus 3 replacement licences). 1968 Act casinos including three casinos which specialise in card room activities. Licences for 1968 Act casinos are no longer issued.

1968 Act casino permitted areas

Areas in which the licensing of premises for casino gaming is permitted showing the number of licensed casinos operating on 31 March 2009 and 31 March 2010: Table 25: 1968 Act casino permitted areas Licensing Area at 31 March 2009 1 7 3 2 2 2 3 3 3 2 1 3 1 1 2 4 3 3 at 31 March 2010 Licensing Area at 31 at 31 March March 2009 2010 3 6 2 3 4 5 2 3 1 2 0 2 1 3 3 3 1 2 Licensing Area at 31 at 31 March March 2009 2010 2 1 1 1 1 1 2 25 2 1 1 1 1 1 2 23

England Birkenhead Birmingham Blackpool Bolton Bournemouth Bradford Brighton Bristol Coventry Derby Dudley Great Yarmouth Hove Huddersfield Kingston-upon-Hull Leeds Leicester Liverpool

England 1 Luton 7 Manchester 2 Margate 2 Newcastle-upon-Tyne 2 Northampton 2 Nottingham 3 Plymouth 3 Portsmouth & Southsea 3 Ramsgate 2 Reading 1 Ryde 3 Salford 1 Scarborough 1 Sheffield 2 Southampton 5 Southend-on-sea 3 Southport 3 Stockport Total number of operating casinos

England 3 Stoke-on-Trent 6 Sunderland 1 Teesside 3 Torbay (Torquay) 3 Walsall 5 West Bromwich 2 Wolverhampton 2 1 London 2 0 Wales 2 Cardiff 1 Swansea 3 3 Scotland 3 Aberdeen 1 Dundee 2 Edinburgh Glasgow 4 1 4 5 145 4 2 4 5 141 3 2 3 2

Gambling Commission - Industry statistics 2009/10

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Casinos
Self exclusions recorded by operators
Table 26: Casino self exclusions 2008/09 Self exclusions Known breaches of self exclusion Number of individuals who cancelled their self exclusion after minimum exclusion period 6,072 381 868 2009/10 6,205 593 1,303 % change 2% 56% 50%

The numbers of people who have self excluded and the numbers 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

There were 77 recorded incidents when someone was challenged on entering a casino and was unable to prove their age14. In addition, 29 incidents were recorded of someone who attempted to gamble, or gambled, in a casino and, when challenged, was unable to prove their age.

14 It is illegal for anyone under the age of 18 to enter a casino.

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Gambling Commission - Industry statistics 2009/10

Gaming machines including arcades

Structure of the industry
Table 27: Number of gaming machine manufacturers, suppliers, AGCs and FECs at 31 March 2009 1968 Act Section 27 certificate holders15 Machine suppliers Sub total 2005 Act Machine manufacturers Adult Gaming Centre (AGC) Family Entertainment Centre (FEC) 367 21715 584 66
16

at 31 March 2010 252 317 569 73 612 274

% change -31% 46% -3% 11% -3% -14%

632 319

Overall the number of gaming machine supplier licence holders as issued under both the Gambling Act 2005 and Section 27 certificate holders has decreased by 3% in 2009/10. The number of Adult Gaming Centre (AGC) and Family Entertainment Centre (FEC) licence holders has decreased by 3% and 14% respectively whereas those holding a licence to manufacture gaming machines has increased by 11% during the same period.

Figure 15: Breakdown of the arcade sector by market

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 are identified as those that supplied the greatest number of machines16 to operators during 2009/10: AMG Leisure Ltd Crown Leisure Ltd Dransfields Novelty Company Ltd Gamestec (Danoptra) Inspired Group (UK) Ltd RLMS (Danoptra) Sceptre Leisure Solutions Ltd Wessex Coin Ltd.

15 Section 27 certificate holders must apply for an operating licence under the 2005 Act when their certificate expires. 16 Revised figures.

Gambling Commission - Industry statistics 2009/10

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Gaming machines including arcades

Gaming machine manufacturers
The primary business of machine manufacturers is the design and manufacture of new game concepts for machines in categories B D, including cranes and pushers. Larger manufacturers are identified as those that supplied the greatest number of machines17 into the market during 2009/10: Astra Novomatic Barcrest / IGT/Cyberview Bell Fruit (Danoptra) Global Draw Inspired Gaming (UK) Ltd Project Coin Machines Ltd. Maximum stakes and prizes Previously classed as jackpot machines jackpot machines fixed odds betting terminals (FOBTs) jackpot machines jackpot machines amusement with prizes machines amusement with prizes machines Stake unlimited 2 100 1 1 1 5 (cash) 8 (nonmonetary) Prize unlimited 4,000 500 500 250 70 Number of machines publicly available at 31 March 2010* 0 2,713 32,112 11,828 508 51,192 46,201

Table 28: Gaming machine categories Category of machine A B1 B2 B3 B4 C D

Total

144,554

*figures taken from regulatory returns. As we do not regulate pubs, clubs, working mens clubs or FECs that dont have adult areas - data from those sectors is not included in this table. Last years figures provided by BACTA included those sectors.

Number of employees
Table 29: Arcade employees 2008/09 AGC Number of employees (FTE18) Number of employees (headcount) Number of casual workers (minimum) Number of casual workers (maximum) 13,133 21,184 1,135 3,076 2009/10 % change AGC 13,296 18,792 853 1,737 1% -11% -25% -44% 2008/09 FEC 5,384 7,870 817 2,138 2009/10 % change FEC 5,554 7,707 278 1,710 3% -2% -66% -20%

Table 30: Gaming machine manufacturer and supplier employees

Manufacturers

2008/09

Manufacturers

2009/10

% change -4% -3%

Suppliers

2008/09 6,259 6,689

Suppliers

2009/10

% change -4% -9%

Number of employees (FTE18) Number of employees (headcount)

1,993 2,025

1,921 1,955

5,999 6,061

17 Including dedicated/greened machines, terminals or games. 18 Full time equivalent.

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Gambling Commission - Industry statistics 2009/10

Gaming machines including arcades

Gaming machines in AGCs and FECs
Table 31: AGC machine numbers and gross profit Machine category B3 B4 C D Aggregated categories** Total 64,232 Machines (2009/10)* 9,126 181 35,723 19,202 Gross profit (2009/10) m* 87 0.6 79 29 188 384

*figures taken from regulatory returns. As we do not regulate pubs, clubs, working mens clubs or FECs that dont have adult areas - data from those sectors is not included in this table. **where gross profit figures have been provided but not broken down by machine category.

Table 32: FEC machine numbers and gross profit Machine category C D Aggregated categories* Total
*where gross profit figures have been provided but without any machine numbers.

Machines (2009/10) 3,652 26,488 30,140

Gross profit (2009/10) m 10 63 15 88

Self exclusions recorded by operators

Table 33: Arcades self exclusions 2008/09 AGC Self exclusions Known breaches of self exclusion Number of individuals who cancelled their self exclusion after minimum exclusion period 2,671 133 649 2009/10 AGC 2,586 113 691 % change -3% -15% 6% 2008/09 FEC 200 10 86 2009/10 FEC 176 7 68 % change -12% -27% -20%

The numbers of people who have self excluded and the numbers 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

There were 8,645 recorded incidents when someone was challenged on entering an AGC and was unable to prove their age19. In addition 554 incidents were recorded of someone who attempted to gamble, or gambled, in an AGC and, when challenged, was unable to prove their age. There were 206 incidents recorded of someone who attempted to gamble, or gambled, on prohibited machines20 in an FEC and, when challenged, was unable to prove their age. Children are allowed in FECs.

19 It is illegal for anyone under the age of 18 to enter an AGC. 20 Category C machines are permitted in licensed FECs but under 18s cannot play them.

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Lotteries
Lotteries
Structure of the industry
As at 31 March 2010 419 non-commercial organisations were licensed to promote society lotteries. Those societies held 419 non-remote lottery operating licences and 96 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 2010, 27 organisations were licensed as External Lottery Managers (ELM). Those ELMs held 24 nonremote ELM operating licences and 10 remote ELM operating licences. Table 34: Lottery licences 2010 at 31 March 2009 Society lotteries ELMs 469 34 at 31 March 2010 515 34 % change 10% 0%

(These figures include remote and non remote lottery operating licences.)

At the time the Gambling Act 2005 was introduced in September 2007 transitional arrangements were put in place for society lotteries holding Gaming Board registrations. These registrations lasted for three years and in cases where the registration still had time to run society lotteries were granted converted licences for the remainder of the period. When these converted licences expire societies are required to apply to the Commission for a full lottery operating licence if they wish to continue promoting a large society lottery. Converted licences ceased to exist after the end of August 2010. The decline in society lotteries since 2008 can be explained by the fact that some of the smaller society lotteries decided not to apply for an operating licence and in future they will promote their lottery as a small society lottery under a local authority registration.

Lottery proceeds, expenses and prizes

Table 35: Lottery proceeds, expenses and prizes taken from lottery returns 1 April to 31 March Number of Proceeds lotteries (ticket sales) m 2008/09 % change 2009/10 % change 10,224 8% 10,300 1% 178.5 5% 194.2 9% Expenses held m 49.5 25% 57.8 17% % of proceeds 27.7 29.8 m 35 17% 38.3 9% Prizes % of proceeds 19.6 19.7 m 94.8 -6% 99.6 5% Balance % of proceeds 53.1 51.3 -

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Gambling Commission - Industry statistics 2009/10

Lotteries

Fig 16: Lottery proceeds

General information about lotteries

Employees
Table 36: ELM employees 2008/09 ELM Number of employees (FTE )
21

2009/10 ELM 669 861 579 729

% change -13% -15%

Number of employees (headcount)

Gambling where individuals were unable to prove their age

There were no incidents recorded by ELMs when someone under the age of 16 attempted to gamble, or gambled, in a lottery and, when challenged, was unable to prove their age.

21 Full time equivalent.

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Remote
Remote Gambling
Structure of the remote gambling industry
As at 31 March 2010 the number of operators licensed by the Commission to carry out remote gambling activities had risen from 366 (at March 2009) to 432. The increase in licence holders was largely due to society lotteries obtaining remote operating licences. Table 37: Breakdown of remote gambling activities licensed by the Commission at 31 March 2009 General betting Society lottery Gambling software Pool betting General betting (telephone) Casino Betting intermediary External lottery managers (ELM) Bingo Total 72 50 104 42 40 20 19 10 9 366 at 31 March 2010 73 96 105 53 41 18 24 10 12 432 % change 1% 92% 1% 26% 2% -10% 26% 0% 33% 18%

The remote gambling industry in Great Britain is made up primarily as follows: some of the large and familiar high street bookmakers (the Gala Coral Group and the Tote) large remote-only operators including Betfair and Bet365 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 smaller bingo and casino operators society lotteries that sell lottery tickets online or by telephone businesses supplying gambling software to gambling operators.

Fig 17: Amount wagered on remote gambling activities (excluding betting exchanges)

Fig 18 GGY by remote gambling activities (including betting exchanges)

The majority of remote gambling sites accessible to British citizens are regulated overseas. Three prominent operators22 relocated all or part of their remote business offshore during the year - the information taken from regulatory returns below includes activity generated by those operators whilst they were regulated here.
22 William Hill, Ladbrokes and Skybet.

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Gambling Commission - Industry statistics 2009/10

Remote
Whilst it is widely recognised that the British remote market has continued to record growth, the market as regulated by the Commission has recorded a reduction in GGY, a reduction in the number of employees within the sector and reductions in the number of active accounts and the number of new player registrations. At the same time the amount wagered on remote gambling (excluding betting exchanges for which the Commission does not obtain turnover data), has increased, as has the value of funds held in player accounts.

General information about remote betting, bingo and casino

Employees
Table 38: Remote sector employees 2008/09 Number of employees (FTE )
23

2009/10 8,577 8,287

% change -3%

Self exclusions recorded by operators

Table 39: Remote sector self exclusions 2008/09 Self exclusions Known breaches of self exclusion Number of individuals who cancelled their self exclusion after minimum exclusion period 47,405 7,186 1,556 2009/10 40,351 7,478 1,519 % change -15% 4% -2%

The numbers of people who have self excluded and the numbers 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 number of individuals. The majority of the known breaches of self exclusion reported above are for cases where the operator has successfully detected an attempt by a customer to breach their self exclusion agreement and the operator has prevented them from gambling.

Gambling where individuals were unable to prove their age

There were 108 incidents recorded of someone who attempted to gamble, or gambled, online and, when challenged, was unable to prove their age24.

Customer accounts
Table 40: Number of customer accounts and funds held 2008/09 Customer accounts (for Commission licensed facilities) Active customer accounts25 New player registrations Funds held in customer accounts 17,784,132 5,415,770 5,674,586 283m 2009/10 17,160,876 4,283,673 4,896,705 288m % change -4% -21% -14% 2%

Gross gambling yield

Table 41: Remote sector GGY 2008/09 Gross gambling yield for remote betting, bingo and casino 714m 2009/10 634m % change -11%

23 Full time equivalent. 24 It is illegal for anyone under the age of 18 to gamble online with the exception of football pools and lotteries where the legal age is 16. 25 Accounts that have been active during the previous 12 months.

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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 organisations 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 2005 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 April 2009 to 31 March 2010. These estimated figures are highlighted in italics throughout this document. The table 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. Where the return covers 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 1 December will not yet have provided data for the latter four months of the period 1 April 2009 to 31 March 2010 (return due 11 January 2011); in this case the annual figures on the return to 1 December 2009 have been taken as a proxy for the full calendar year.

31/3/2010

Please note that all figures for 2009/10 are provisional and therefore subject to amendment within a future industry statistics publication.

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Gambling Commission - Industry statistics 2009/10

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. Gross profit - for the purposes of this document, gross profit is defined in the same way as GGY above. 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 licence may authorise one or more activity. A licensed activity is the actual type of gambling/ gaming function provided by the operating licence such as bingo or a lottery. These licensed activities can be grouped under sectors, and some sectors may incorporate one or many licensed activities. Sector the area of a particular gambling activity, eg, the betting sector, the arcades sector.

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Appendix 3
Useful contacts
Organisation Address Website and email

Association of British Bookmakers (ABB) Betting Exchange Trade Association (BETA) Bingo Association British Amusement Catering Trade Association (BACTA) British Association of Leisure Parks, Piers and Attractions (BALPPA) British Beer & Pub Association British Holiday & Home Parks Association Ltd (BHHPA) British Horseracing Authority (BHA) Business in Sport and Leisure (BISL) Casino Machines Manufacturers Group (CMMG) Casino Operators Association (COA) Financial Services Authority (FSA) GamCare Gordon House Association Horserace Betting Levy Board Hospice Lotteries Association Independent Betting Adjudication Service Lotteries Council Administration of Gambling on Tracks Ltd (AGT) & National Joint Pitch Council (NJPC)

Warwick House, 25 Buckingham Palace Road, London, SW1W 0PP PO Box 34467, London W6 9WS Lexham House, 75 High Street, North Dunstable, Bedfordshire LU6 1JF Alders House, 133 Aldersgate Street, London EC1A 4JA Suite 12, 37 Tanner Street, London SE1 3LF Market Towers, 1 Nine Elms Lane, London SW8 5NQ Chichester House, 6 Pullman Court, Great Western Road, Gloucester GL1 3ND 75 Holborn, London WC1V 6LS 17a Chartfield Avenue, Putney, London SW15 6DX Buchanan House, 3 St Jamess Square, London SW1 Y 4JU 86 Jermyn Street, London SW1Y 6JD 25 The North Colonnade, Canary Wharf, London E14 5HS 2nd Floor, 7-11 St Johns Hill, London SW11 1TR Gordon House Central Office, 114 Wellington Road, Dudley, West Midlands DY1 1UB Parnell House, 25 Wilton Road, London, SW1V 1LW Ty Hafan Childrens Hospice, St Hilary Court, Copthorne Way, Calderhouse Cross, Cardiff CF5 6ES PO Box 62639, London EC3P 3AS 42 Kynston Road, Shrewsbury SY1 2UN 3a Kings Hall, St Ives Business Park, St Ives, Cambridgeshire PE27 4WY

www.abb.uk.com mail@abb.uk.com corporate@betfair.com www.betfair.com www.bingo-association.co.uk info@bingo-association.co.uk www.bacta.org.uk info@bacta.org.uk www.balppa.org

www.beerandpub.com www.bhhpa.org.uk enquiries@bhhpa.org.uk www.britishhorseracing.com info@britishhorseracing.com www.bisl.org info@bisl.org

www.casinooperators association.org.uk cosec@coa-uk.org.uk www.fsa.gov.uk www.gamcare.org.uk info@gamcare.org.uk www.gordonhouse.org.uk help@gordonhouse.org.uk www.hblb.org.uk enquiries@hblb.org.uk www.hospicelotteries.org.uk

www.ibas-uk.com adjudication@ibas-uk.co.uk www.lotteriescouncil.org.uk www.njpc-ltd.co.uk mainoffice@agt-ltd.co.uk

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Gambling Commission - Industry statistics 2009/10

National Casino Industry Forum (NCIF) Remote Gambling Association

Carlyle House, 235 - 237 Vauxhall Bridge Road, London SW1V 1EJ 6th Floor, High Holborn House, 52-54 High Holborn, London WC1V 6RL

www.nci-forum.co.uk director@nci-forum.co.uk www.rga.eu.com www.rgfund.org.uk enquiries@rgf-rgsb.org.uk www.rgsb.org.uk enquiries@rgf-rgsb.org.uk mail@abb.uk.com

Responsible Gambling 16 St Martins le Grand, Fund & Responsible London EC1A 4EN Gambling Strategy Board Scottish Independent Bookmakers Association (SIBA) Pools Promoters Association The GREaT Foundation White Craigs House, Glasgow G46 6SN Walton House, Charnock Road, Liverpool L67 1AA 35 Piccadilly, London W1J 0DW

enquiries@sportechplc.com www.sportechplc.com www.thegreat foundation.org.uk info@thegreat foundation.org.uk www.britishracecourses.org info@racecourse association.co.uk

The Racecourse Association (RCA) The Racecourse Promoters Association (RCPA)

Winkfield Road, Ascot, Berkshire SL5 7HX 24 Lancashire Road, Bishopston, Bristol BS7 9DL

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keeping gambling fair and safe for all

For further information or to register your interest in the Commission please visit our website at: www.gamblingcommission.gov.uk Copies of this document are available in alternative formats on request. Gambling Commission Victoria Square House Victoria Square Birmingham B2 4BP T 0121 230 6666 F 0121 230 6720 E info@gamblingcommission.gov.uk

Gambling Commission Published December 2010

AR 10/02