Industry statistics - Gambling Commission

1 Industry statisticsApril 2014 to March 2017 Headline findings Executive summary PrefaceIndustryoverview3456 Remote BettingNationalLottery CasinosBingo ArcadesLarge societylotteries11162023273033 Appendix 1: Compilation methodology Appendix 2: Gaming machine manufacturers Appendix 3: Gaming machine categorisation Appendix 4:Terminology37384041 Contents2 Headlinefindings3 GGY for the remotesector(Apr 2016 Mar 2017)(11% increase from Apr 2015 Mar 2016)34%Market share of the remotesector(Apr 2016 Mar 2017)(2% increase from Apr 2015 Mar 2016)182,916 Totalnumberofgamingmachinesin GreatBritain(Apr 2016 Mar 2017) ( increase from Apr 2015 Mar 2016) (excludes those requiring only a local authoritypermit) (to good causes) from The National Lottery(Apr 2016 Mar 2017) ( decrease from Apr 2015 Mar 2016) to good causesfromlarge societylotteries(Apr 2016 Mar 2017) ( increase from Apr 2015 Mar2016) Gross Gambling Yield (GGY) oftheGreat Britain gamblingindustry(Apr 2016 Mar 2017)(2% increase from Apr 2015 Mar 2016)106,236 Total number of employees intheGreat Britain gamblingindustry(Mar 2017) (1% decrease from Mar2016)8,531 Total number of bettingshopsin GreatBritain(Sep 2017)

2 ( decrease from Mar2017)583 Total number of bingo premisesin Great Britain(Sep2017) ( decrease from Mar 2017)146 Total number of casinos in Great Britain(Sep 2017) (1 more than Mar2017)1,750 Total number of licensed arcades in GreatBritain(Sep 2017) ( decrease from Mar2017)The headline findings in this report indicate areas of interest across the Industry or within each sector, highlighting large percentage changes or changes in January 2018: Following amended submissions from operators we have updated some of this data. The areas that have been updated are betting premises numbers and remote betting exchange data. Executivesummary4 Industry statistics provide analysis of the Gambling Industry in Great Britain. Aggregated information is presented by sector, which includes data on gaming machine numbers and their Gross Gambling Yield (GGY), employee numbers and social responsibility activities.

3 This report reflects headline findings that describe the current Gambling market and is accompanied by a detailed GGY for the industrywas the year April 2016-March 2017, asreported by operators licensed and regulated by the Gambling Commission . The Gambling Industry demonstrates continued growth in most sectorswith the exception of National Lottery, bingo and Gambling (mostly online) is the largest sector by GGY. It has been regulated on a point of consumption basis in Great Britain since November 2014. This sector constitutes 34% of the overall market with GGY( increase). Within the remote sector, casino games have generated in GGY, predominantly through slots games( ). GGY for remote betting totals and is dominated by football and GGY has increased by currently totaling to make it the second largest sector by GGY. GGY for off-course and on-course betting activities declined by and respectively over the last year whilst pool betting and machines have increased by and 55m during the same period.

4 Machines GGYcurrently represents of the total off-course GGY. Total betting premises have declined for the fourth consecutive year to8, National Lottery share of GGY has fallen by 438m to ( decrease), making it the third largest sector, with the National Lottery primary contribution to good causes also falling to its lowest level since 2010 at sector GGY remains steady at 687m, of which is derived from machines. The casino sector has seen an increase of 154min casino games GGY, from 803m to 957m, led by Punto Banco which has risenfrom 23m to has seen a slight decreasefrom 204m to 181m. Electronic gaming, a growth area within casinos, has seen a year-on-year increase and currently stands at the arcades sector, Adult Gaming Centres show a slight increase in GGY, now reporting 350m, up from 344m last year. Increases can be seen in Category B3 and Category C machines.

5 GGY for licensed Family Entertainment Centres has decreased, now reporting a GGY of 65m. Note that this data does not include Unlicensed Family Entertainment Centres which operate using a permit from the society lotteries, traditionally the smallest market share along with arcades, have seen a GGY equivalent increase to ( increase), with balance to good causes at ( increase), the highest reported overall number of gaming machines across the Industry has continued on an upward trend to 182,916, as well as an increase in machine GGY in all sectorsexcept FECs; and in most machine categories except for C and D. Betting shops continue to generate the highestmachines GGY at Across all sectors, B2 machines have generated , representing the highest category GreatBritain(GB)fortheperiodApril2014toM arch2017. AnupdatereporttocoveruptoSeptember20171i s scheduledto bepublishedin statistics cover Gambling across the betting, bingo, casino, arcades and lotteries sectors (including The National Lottery)2.

6 They also include data on remote Gambling services in reliance on a Commission licence from GB-based operators and non-GB has been collated by the Gambling Commission and is drawn from regulatory returns submitted by licensed operators and additional information provided by operators through correspondence with methodology for producing this report is consistent with Official statistics guidelines (see Appendix 1 for moredetail).Further statistics and information relating to GB Gambling are available from the statistics and Researchsection of full data tables and graphs (including data for earlier periods), refer to the Excel version of Industry statisticson the Gambling alreadyknown,it is includedin notincluded,astheCommissionis 1: Industry GGY by sector( m)Gross gamblingyieldDuring the period April 2016to March 2017, the regulated GB Gambling Industry generated a gross Gambling yield (GGY) or equivalent3 of , a 2% increase compared with the year The figure represented reflects seven months data under the Gambling Act 2005 from 1 April 2014 to 31 October 2014, and represents the whole regulated market (regardless of where the customer wasbased).

7 5 The figure represented reflects five months data under the Gambling (Licensing and Advertising) Act 2014 from 1 November 2014 to 31 March 2015, and relates to GGYfromGBbasedcustomersfrombothGBbasedan dnon-GBbasedoperatorsprovidinggamblingse rvicesin November2014(asa consequenceoftheGambling(LicensingandAdv ertising)Act2014). Fromthispoint,nonGBbasedoperatorsprovidi nggamblingservicesin GBwererequiredtoholda GBoperatinglicence . 2014 Mar 2015 Apr 2015 Mar 2016 Apr 2016 Mar 2017 Arcades(non-remote) (non-remote)3, , , (non-remote) (non-remote)1, , casino, betting and bingo (previous legislation) casino, betting and bingo(new legislation) , , (remote and non-remote)3, , , (remote and non-remote) , , , Casino, Betting and Bingo, 34%Betting, 24%National Lottery, 22%Casinos, 8%Bingo, 5%Arcades, 3%Large Society Lotteries, 3% Industry GGYby sectorFigure 1: Industry GGY bysectorBetting78%Arcades16%Bingo5%Casin o1%Premisesby non-remote sectorFigure 2: Licensed activities held bysectorFigure 3: Premises by non-remotesectorLicensing authoritypremisesIn addition to premises used by licensed operators, there were 53,242premises where Gambling is permitted and controlledbylicensingauthorities.

8 Data on non- Commission licensed premises can be found in Licensing at 31 March2017there were a total of 2,788operators licensed by the Gambling Commission , 357 of which operate across more than one sector. Between them, those operators held licences (remote and/or non-remote) that entitled them to conduct 3,685activities ( decrease on the previousperiod).Across GB, there were 11,010gamblingpremises used by licensed operators in September2017 a decrease of 419( ) since , 22%Society Lotteries, 18%Arcades, 17%Gaming Machine Technical, 15%Remote Casino, Betting and Bingo, 14% Gambling Software, 7%Bingo, 5%External Lottery Managers, 1%Casino, 1%Licensed activitiesheldby sector7 EmploymentThe number of people working in the Gambling Industry was 106,236(as at 31 March 2017) ( decrease on the previous reportingperiod).Table 2: Number of employees across all gamblingsectors7 EmployeesAs at 31 Mar 2015As at 31 Mar 2016As at 31 Mar 2017 Betting51,50953,25052,292 Bingo13,27812,82312,433 Casino15,56916,35016,417 Arcades10,98010,74910,070 Gaming machinetechnical87,1616,6096,132 Lotteries (External Lottery Managersonly)9821,1241,090 Remote7,6456,3647,802 Total107,124107,269106,2367 Employee headcount are drawn from the latest regulatory return submitted by operators on or before 30 March 2017.

9 Full time and part time employees are included in The employee numbers for gaming machine technical (GMT) include headcount from all of the GMT licensed activities (including manufacturers, suppliers and software manufacturers).849%betting employees16%casino employees12%bingo employees9%arcade employees7%remote employees6%gaming machine technical employees1%lottery (ELM) employees49%of employees in the Gambling Industry work in the betting sector9 The average total of gaming machines acrossallnon-remote Gambling sectors in GB (in premises used by licensed operators only9) during the period April 2016 to March 2017 was 182,916 (an increase of compared to the previousperiod).Category B2, B4 and D machine numbers have declined, whilst Category B1, B3 and C numbers C machines were the most prevalent category of machine, representing of all machines. The introduction and widespread use of electronic bingo terminals10 (EBTs) within the bingo sector accounts for most of the increase in Category andCategoryB2machineswerethesecondandthi rdmostprevalentmachinestypes;togetheracc ountingfora , 3: Gaming machine numbers across all regulated Gambling sectors(average)11 Table 4: Gaming machine GGY across all Gambling sectors( m)MachinecategoryCasinoBettingBingoArcad esTotalB12,9792,979B219133,42033,611B314 912,15411,80524,008B4--8781168C-2747,487 34,19981,713D--6,48833,94840,437 Total3,17033,49666,21680,034182, , , , , total GGY for gaming machines was ( increase compared to the previous period); representing 20% of total Industry GGY.

10 There was growth in all categories, apart from Category CandCategory D, where there was a Category machines accounted for of the total machines GGY (which equates to of total industryGGY).Across GB, of GGY from gaming machines was generated from the non-remote ,clubs,workingmen sclubsorunlicensedfamilyentertainmentcen tres(UFECs)operatingundera LocalAuthoritypermit. Consequently,thefiguresdonotrepresentact ivityin forinformationongamingmachinecategoriesa ndentitlements10 EBTsaredevicesthatenablea playerto purchasea largernumberof ticketsthantheywouldusuallybeableto handlefromplayingonpaper. EBTscanalsocontainothergamblingrelatedco ntentsuchasslotgames. Originallyintroducedto themarketasCategoryD machines,evidenceindicatesthata numberof theEBTsnowoperatewithCategoryC providetheiraveragenumberof have a duty to report various social responsibility related activity to the Commission .