GAMBLING INDUSTRY

Gambling Industry



Introduction

Gambling is an activity which can be found in almost every country or culture. Gambling as a definition means wagering of money or something of material value on a happening with an uncertain result with the main intent of winning additional money or material goods. This can happen everywhere and at anytime. Although, gambling as an industry is confined to certain locations or activities, usually by law and public policy. With legalized gambling being generally location specific, the ability of the internet to expand the reach of services provides new opportunities to offer gambling to a wider market. This market is still very young and rising in revenue every year. The objective of this report is to analyse the United Kingdom and Ireland gambling industry. Therefore, we will conduct the PESTEL and SWOT analysis, and understand the structure of the industry.

Gambling Industry Overview

Market analysis

The UK gambling sector suffered a decline in 2009 of 5.6%. However, the sector is expected to return to healthy growth in 2010 and continue this growth throughout the forecast period. The UK casinos & gaming sector generated total revenues of $29.3 billion in 2009, representing a compound annual growth rate (CAGR) of 1.1% for the period spanning 2005-2009. In comparison, the French and German sectors grew with CAGRs of 1.4% and 2.2% respectively, over the same period, to reach respective values of $12 billion and $18.5 billion in 2009. The other gaming segment was the sector's most lucrative in 2009, generating total revenues of $28.2 billion, equivalent to 96.3% of the sector's overall value. The casino segment contributed revenues of $1.1 billion in 2009, equating to 3.7% of the sector's aggregate revenues. The performance of the sector is forecast to accelerate, with an anticipated CAGR of 7.3% for the fiveyear period 2009-2014, which is expected to drive the sector to a value of $41.6 billion by the end of 2014. Comparatively, the French and German sectors will grow with CAGRs of 7% and 4.6% respectively, over the same period, to reach respective values of $16.8 billion and $23.1 billion in 2014.

Summary of gambling industry by category wise

Sector

Revenues (G.P) £m

Number of employees

Units/premises/shops

Betting

55775 (39710)

8822

Off-course betting

9236 (1443)

On-course betting

317 (28)

Pool betting

457 (135)

Gaming machine betting

(1288)

32934

Bingo

1359

17332 (12242)

Main bingo

708

Mechanized bingo

563

National game

33

Prize bingo

55

Casino

13696 (11826)

143

Gaming Machines

(+137)

2769

Drop

4529

Win

679

Lotteries

(+99.6)

729 (579)

Structure of the industry

Key players

Camelot Group

Camelot Group is a licensed operator of the UK National Lottery. It offers numbers games twice a week and a variety of instant-win games. Camelot raises money for the good causes designated by the Parliament through the sale of National Lottery games and is not responsible for distributing or awarding these funds. The company solely operates in the Isle of Man and the UK, where it is headquartered in Watford and employs 941 people. Camelot manages the National Lottery infrastructure, provides services for players and winners, designs new games, develops the marketing support for lottery products, and runs the network that sells tickets to players in partnership with over 27,500 retailers UK-wide

Gala Coral Group

Gala Coral Group (Gala) is ...