According to National Statistics, household expenditure on betting and gaming was virtually unchanged between 2004 and 2005, whereas the 2 years prior to 2004 both saw double-digit growth. The industry is in the process of tremendous change, as deregulatory measures come into effect following the enactment of the 2005 Gambling Act. This act has established the framework for the new regulatory regime, but there are still details to be determined and the key provisions will not come into force until late 2007.

Deregulation is controversial. Its opponents are of the opinion that increased opportunities to bet can lead to increased problem gambling. Its supporters argue that it is a matter of personal liberty. There is, of course, no doubt that the Treasury will benefit greatly. Casino operators have already reported increased attendances since the 24-hour `cooling off' period between joining a club and being permitted to play was abolished. Two of these operators, Stanley Leisure and London Clubs International, are in merger talks that would create the largest casino operator in the UK.

The Government has said that, at least for the short term, only one regional (or `super') casino will be permitted in the UK, with a minimum of 5,000 square metres of floor space. Since this regional casino, in addition to gaming tables, will be able to house lucrative Category A gaming machines with unlimited stakes and prizes, competition between operators to be awarded the coveted licence is stiff.

Online betting, which is the fastest-growing sector of the betting and gaming industry (worth more than $12bn in 2005), is to be regulated under the Gambling Act, with effect from September 2007. At the moment, it is a grey area, as no online casino gaming site can be lawfully established in the UK — although residents of the UK are free to play on overseas sites and betting sites can be located in the UK. Remote gambling is also a grey area in the US, and online gambling companies saw their values plunge when the British Chief Executive of Internet sports betting company BetonSports was arrested in the US in July 2006. Subsequently sacked from his job, he faces trial along with others on a range of charges, including Wire Act offences, racketeering, money laundering and fraud.

Whether the racketeering and fraud is proved or not, the fact that the US Justice Department is to prosecute under the Wire Act has caused shudders in the online industry. An international conference of online gambling operators in Las Vegas was hurriedly cancelled in July 2006, amid fears that the Federal Bureau of Investigation (FBI) could be about to widen its crackdown on the US industry, estimated to be worth more than £3bn. The UK, as well as the US, industry and its investors may well welcome a court case that serves to make the law clearer, while the provisions of the Gambling Act 2005 will hopefully clarify the provision of online gambling in the UK.

At the time that this report was published (October 2006), there had just been a `shock move' by the US authorities, where the US Senate pushed through a Bill outlawing the processing of online bets by banks and credit companies. PartyGaming and 888 have both said that they will suspend their US operations once a new law comes into effect, probably within a fortnight.

Executive Summary
1. Market Definition
Report Coverage
MARKET SECTORS
MARKET TRENDS
Incidence of Gambling
Remote Gambling
Economic Trends
Gross Domestic Product
Inflation
Household Disposable Income
Population
Unemployment
MARKET POSITION
The UK
Overseas

2. Market Size
The Total Market
By Market Sector
Lotteries
Casinos
Regional Differences in Drop
Number of Visits to Casinos by Region
Distribution of Drop by Game
Licensed Bingo
Multiple Bingo
Linked Bingo
Gaming Machines
Football Pools
Bookmaking
Government Duties from Betting and Gaming
Changes to Duty Payable on Gaming Machines
Casinos' Gaming Duty

3. Industry Background
Recent History
Industry Synopsis
Number of companies
Employment
Regional Variations in the Marketplace
DISTRIBUTION
Lotteries
Casinos
Licensed Bingo
Gaming Machines
Bookmakers
HOW ROBUST IS THE MARKET?
Control of the Industry
Lotteries
Casinos
Bingo
Gaming Machines
Pools
On- and Off-Course Betting
LEGISLATION
The Gambling Act 2005
The National Lottery Act 2006
TRADE ASSOCIATIONS
Association of British Bookmakers
The Bingo Association
The British Amusement Catering Trades Association
The British Casino Association
Business In Sport and Leisure
European Gaming Organisation
The Gaming Regulators European Forum
Interactive Gaming Council
National Association of Bookmakers
The National Bingo Game Association
Pools Promoters Association
The Remote Gambling Association

4. Competitor Analysis
THE MARKETPLACE
Lottery Operators
Casino Operators
Licensed Bingo
Gaming Machines
Football Pools
Bookmakers
MARKET LEADERS
Camelot Group PLC
Company Structure
Current and Future Developments
Financial Results
Gala Coral Group Ltd
Company Structure
Current and Future Developments
Financial Results
Ladbrokes PLC
Company Structure
Current and Future Developments 42
Financial Results 43
London Clubs International PLC
Company Structure
Current and Future Developments
Financial Results
Rank Group PLC
Company Structure
Current and Future Developments
Financial Results
Stanley Leisure PLC
Company Structure
Current and Future Developments
Financial Results
The Tote
Company Structure
Current and Future Developments
Financial Results
William Hill PLC
Company Structure
Current and Future Developments
Financial Results
Outside Suppliers
Betting Services
Equipment
Security
Recruitment and Consultancy Services
Marketing Activity
Main Media Advertising Expenditure
Clubs and Associations
Bookmakers
Football Pools, Lotteries and Bingo
Casinos
Poker
Spread Betting
Tipsters
Recent Promotions
Monday
Sportingodds
Dream Number
Totesport
Vernons
Gala Coral
Other Marketing Activities
The-Pool.com
New Magazines
The Sportsman
National Lottery Commission
UK Exhibitions
Amuse UK
The Betting Show
Games Market Europe
The International Casino Exhibition and the Amusement Trade Exhibition International
Overseas Exhibitions
Australasian Gaming Expo
Eastern European Leisure Exhibition
European I-Gaming Congress and Expo
G2E

5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

6. Buying Behaviour
HOUSEHOLD EXPENDITURE
Expenditure by Age
Expenditure on Lotto
FREQUENCY OF PARTICIPATION
The National Lottery
Participants of the Weekly Saturday Draw by Sex and Age
Other Leisure Activities
Betting with a Bookmaker

7. Current Issues
CLOSURES, MERGERS AND ACQUISITIONS
BetonSports
City Index
Gala Coral Group Ltd
Harrah's Entertainment
PartyGaming
Victor Chandler
BOARD AND SENIOR MANAGEMENT CHANGES
Camelot Group PLC
Chariot (UK) PLC
Gala Coral Group Ltd
IG Group
Ladbrokes PLC
Rank Group
Sky Bet
Stanley Leisure PLC
The Tote
NEW PROJECTS
Betfair
Dream Number
Ladbrokes Casino and Sports Bar
London Clubs International
Monday Lottery
Pescadores
Pirates of the Caribbean: Dead Man's Chest
MATTERS AFFECTING THE INDUSTRY
Deregulation
Remote Gambling
Problem Gambling
National Lottery Licence
Ban on Smoking in Public Places

8. The Global Market
The Total Market
Lotteries
Casino Machines
Horseracing
The European Market
The US Market
The Asian Market
The Australian Market
Principal Global Competitors
Boyd Gaming Corporation
Casinos Austria International
Galaxy Entertainment Group Ltd
Harrah's Entertainment Inc
Las Vegas Sands Corporation
MGM Mirage
Pinnacle Entertainment Inc
Tabcorp Holdings Ltd
Wynn Resorts Ltd

9. Forecasts
INtroduction
Gross Domestic Product
Future Trends
The Gambling Act 2005
Increased Tax on Fixed Odds Betting Terminals
Industry Consolidation

10. Company Profiles
Camelot Group Plc
Ladbrokes Plc
London Clubs International Plc
The Rank Group Plc
Stanley Leisure Plc
William Hill Plc

11. Consumer Confidence
METHODOLOGY
KEY FINDINGS THIS QUARTER
THE WILLINGNESS TO BORROW
THE WILLINGNESS TO SPEND FROM SAVINGS

12. Further Sources
Associations
Publications
Government Sources
General Sources
Other Sources