Gaming: Implications of Growth for Global Marketing Strategies

EXECUTIVE SUMMARY

Key Trends and Drivers

Summary 1 Growth Drivers in the Gaming Market 2007

The Gaming Market

Chart 1 Casino Revenues in Major Markets 2006

Gaming Consumers

Summary 2 National Gaming Preferences 2007

Company Developments

Chart 2 World’s Major Gaming Companies by Revenues 2006-2007

Outlook

Summary 3 Opportunities and Challenges in the Gaming Industry to 2011

INTRODUCTION

Definitions

Gaming versus gambling

Types of gaming

Internet opens up gaming audience
Poker remains ever popular

Statistics

The Gambling Consumer

MARKET DRIVERS

Economic indicators

Impact on gaming revenues
The state of the global economy
Disposable Income
Table 1 Average Annual Disposable Incomes by Country 2001/2006

Changing Attitudes Towards Debt

The rise of consumer borrowing
Table 2 Per Capita Value of Credit Card Transactions in Selected Countries 2002/2007
Impact on gaming market

Internet Usage

General Trends
Chart 3 Growth in On-line Population in Top 15 On-line Countries January 2006-January 2007
Chart 4 Top 15 Countries by Internet Users 2007
Impact on gaming market
Summary 4 On-line Versus Off-line Gaming 2007

Mobile Phone Usage

General Trends
Table 3 Number of Mobile Phone Users by Country 2001-2006
Impact on gaming market

Influence of the media

Impact of Technology

Automated and virtual poker
Virtual racing
Electronic bingo

KEY TRENDS AND DEVELOPMENTS

Legislation and Deregulation

Influence of the State
On-line gambling regulations in the US
On-line gambling regulations in Europe
New gambling regulations for South Africa
Gaming regulations in Europe
Effects of anti-smoking measures
Advertising regulations

Gaming and Tourism

Casinos drive tourism growth
Casinos’ contribution to tourist attraction revenues
Chart 5 Casinos as a % Total Tourist Attraction Revenues by Country 2006
Table 4 Casino Revenues by Country 2001-2006

Trends in Casino Destinations

US
Europe
Asia
Australasia and South Africa
Summary 5 Major Gaming Destinations 2007

The Social Cost of Gambling

Compulsive gambling defined as illness
...but little state help for sufferers
Japanese addicts face imprisonment
Industry codes of practice

COMPANY DEVELOPMENTS

Overview of companies

Harrah’s leads the way
Genting reaches international status
UK bookmakers rank among world’s largest gaming companies
On-line casinos earn place among leaders
Summary 6 Leading Gaming Companies 2007

Company Strategies

Industry consolidation
Summary 7 Key Mergers and Acquisitions 2005-2007
International expansion
New product development
Relocation
Advertising
CSR Policies

GAMING IN MAJOR MARKETS

Australia

Gambling revenues
Chart 6 Australian Gambling Revenues By Type 2005
Problem gambling
Australia’s leading casinos
Table 5 Leading Australian Casinos by Number of Visitors 2001-2005

China

Gambling seen as chance to get rich quick
Relaxation of travel restrictions allows exodus to Macao
On-line gambling

France

Chart 7 French Gambling Expenditure By Type 2006
State monopoly
Industry fights for liberalisation of on-line marketplace
Casinos
Table 6 Leading Casinos by Revenue 2005
Horse racing
On-line gambling

Germany

On-line gambling soars
TV betting channel boosts public interest
Betting industry remains in state hands
Experts anticipate deregulation
Germany urged by EC to lift on-line gambling ban

Japan

Japan is world’s leading gambling nation
Table 7 Gambling Habits in Japan 2006
Sports gambling
The national lottery
Pachinko
Casinos
Problem gambling

South Korea

On-line gambling
Casinos

UK

Gambling Prevalence Study 2007
Table 8 Gambling Activities in the UK 1999/2007
Table 9 Characteristics of Gamblers in the UK 2007
Betting
Bingo
Chart 8 UK Bingo Operators: Shares by Number of Outlets 2007
Casinos
Chart 9 UK Casino Operators by Number of Operating Licences August 2007
On-line gambling

US

Industry recovers from Hurricane Katrina damage
Chart 10 Gambling Revenues by Type 2005
Table 10 Gross Gambling Revenues in the US 2001-2006
Casinos
Table 11 Leading Casino Markets in the US by Gross Revenue 2006
On-line gambling
The gaming consumer
Summary 8 Casino Gambling Consumers – Characteristics 2006

FUTURE OUTLOOK

Trends to Watch

Market potential
New destinations
Legislative changes in on-line gambling
On-line gambling potential in Asia
Growth of mobile gambling
Automation

Implications for Future Gaming Company Strategies

Further consolidation expected

Market Forecasts

Global market to be fuelled by new casino growth
Asia-Pacific to become second largest regional market
Chart 11 Forecast Casino Revenues by Region 2006/2011

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