21
April 2013 to March 2018 Industry statistics machines digest
April 2013 to March 2018
Industry statisticsmachines digest
Contents
Preface 3
Headline findings 3
Overview 4
Machine (GGY) 4
Machine numbers 7
Licensing authority machines numbers 8
Participation 9
Betting sector 10
Bingo sector 12
Casino sector 14
Arcades sector 16
Appendix 1: Gaming machines GGY by sector (consolidated) 18
Appendix 2: Summary of machine provisions by premise 19
Appendix 3: Gaming machine categorisation 20
Appendix 4: Terminology 20
Preface
181,309Total number of gaming machines in Great Britain(Apr 2017 – Mar 2017) (0.5% decrease from Apr 2016 – Mar 2017)
(excludes those requiring only a local authoritypermit)
This report provides statistics on the gaming machines component of the regulated gambling industry in Great Britain (GB) for the period April 2013 to March 2018.
The statistics provided are extracted from the Gambling Commission’s Industry Statistics report, which covers gambling across the betting, bingo, casinos, arcades, remote, gaming machines manufacturers and lotteries sectors (including The National Lottery). This digest includes an additional section on participation in gaming machines gambling, an estimate of the quantity of machines licensed by Licensing Authorities, and a consolidated table of machine category numbers and gross gambling yield (GGY) by sector.
Data within this document 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 us.
The methodology for producing the data used in the publication of this report is consistent with Official Statistics guidelines.
Supporting data tables for the report’s charts can be found in the Industry Statistics – MS Excel document
Further statistics and information relating to GB gambling are available from the our website.
3
Headline findings
The headline findings in this report are:
£2.7bnTotal GGY from gaming machines in Great Britain(Apr 2017 – Mar 2018) (1.3% decrease from Apr 2016 – Mar 2017)
(excludes those requiring only a local authoritypermit)
19.0%Market share of industry GGY is derived from gaming machines(Apr 2017 – Mar 2018) (1.1% decrease from Apr 2016 – Mar 2017)
32,956Total number of Category B2 machines in Great Britain(Apr 2017 – Mar 2017) (3.0% decrease from Apr 2015 – Mar 2016)
Gross gambling yieldDuring the period April 2017 – March 2018, the regulated GB gambling industry generated a gross gambling yield (GGY) or equivalent1 of£14.4bn, an increase of 4.5% compared with the previous year.
Table 1: Industry GGY (£m)
1 GGY equivalent for the National Lottery and large society lotteries is total proceeds minus total prizes.
Overview
4
Total GGY from gaming machines regulated by a Gambling Commission licence during this period was £2.7bn (1.3% decrease on April 2016 – March 2017), representing a 18.9% share of the total industry GGY (remote and non-remote).
GGY (£m)Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
Gaming machines 2,399.00 2,544.53 2,677.67 2,770.91 2,735.55 Non-gaming machines 7,469.63 8,769.25 10,778.38 11,057.04 11,718.47Overall Total 9,868.63 11,313.78 13,456.05 13,827.95 14,454.01
Within the non-remote sectors that are licensed to facilitate the use of machines, namely; casino, bingo, adult gaming centre (AGC), family entertainment centre (FEC) and betting, the percentage of GGY generated by machines stands at 49.3% for the year ending March 2018.
Figure 1: GGY revenue split of non-remote sectors (£m)
-
500
1,000
1,500
2,000
2,500
3,000
Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
Non-Machines Machines
5
There was machine GGY growth in all sectors apart from betting and FEC, where there was a decline of £37.7m (2.1%) and £8.2m (12.6%) respectively from the year ending March 2017. Compared to the year ending March 2014, there have been machine GGY increases in betting of £215.2m (13.7%), casino by £51.3m (32.9%), AGC by £49.0m (15.7%) and bingo also increased by £31.2m (10.6%).
Figure 2: Gaming machine GGY by sector (£m)
Figure 3: Percentage split of the total gaming machines GGY by sector (April 2017 – March 2018)
0200400600800
1,0001,2001,4001,6001,8002,000
Betting AGC Bingo Casino FEC
Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
Betting, 65.2%AGC, 11.9%
Casino, 13.2%
Bingo, 7.6% FEC, 2.1%
Betting AGC Casino Bingo FEC
By category of machine across all sectors, the largest increase compared to the year ending March 2017 was for B3 with £91.8m (23.0%). Over the five year reporting period B3 GGY has increased by £187.7m (61.9%).
Machine Category GGY (£m)
Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
B1 145.88 157.50 181.78 192.27 193.23
B2 1,577.27 1,692.59 1,760.00 1,835.04 1,727.81
B3 303.32 326.76 360.05 399.20 491.01
B4 0.95 1.01 1.18 1.42 2.13
C 220.90 224.74 236.14 232.29 227.04
D 101.93 103.05 107.02 102.36 94.33
Aggregated categories 48.84 38.88 31.50 8.32 0.00
Total 2,399.00 2,544.53 2,677.67 2,770.91 2,735.55
Table 2: GGY by gaming machine category across all non-remote sectors (£m)
Figure 4: Percentage split of GGY by gaming machine category across all sectors (April 2017 – March 2018)
Refer to later sections in this document and Appendix 1 for further details on gaming machines per sector.
6
Following recent changes to the way operators submit B3 data, the increase in GGY was anticipated. Prior to the last reporting period, B3 GGY would be attributed to B2 GGY if the end user could change from one category to the other on the same machine/cabinet.
B263.16%
B317.95%
C8.30%
B17.06%
D3.45%
B40.08%
Machines numbersThe average total numbers of gaming machines across all gambling sectors2 in Great Britain during the period April 2017 – March 2018 was 181,309 (a decrease of 0.5% compared to the previous period).
Figure 5: Percentage split of the average number of machines by non-remote sector
Category C and Category D machines were the most common type of machine, collectively accounting for 66.4% of the total gaming machines.
Category B2, B4 and D machine numbers have declined over the last 12 months, whilst Category B1, B3 and C numbers have increased.
Table 3: Gaming machine numbers across all sectors (average)3
Machine Category
Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
B1 2,657 2,630 2,806 2,981 3,034B2 34,549 34,949 34,701 33,971 32,956B3 17,303 18,599 22,375 23,529 24,811B4 219 311 295 221 207C 61,929 73,005 76,822 79,820 82,278D 53,982 43,298 44,876 41,683 38,024Total 170,639 172,793 181,874 182,205 181,309
Figure 6: Percentage split of gaming machine numbers across all sectors (April 2017 – March 2018)
2 The Commission does not license pubs, clubs, working men’s clubs or family entertainment centres (FECs) operating under a Licensing Authority permit. Consequently, the figures do not represent activity in those sub-sectors.3 Gaming machine numbers fluctuate during the year and as such operators are required to provide their average number of machines.
7
Bingo40.2%
AGC30.3%
Betting18.1%
FEC9.6%
Casino1.8%
C45.4%
D21.0%
B218.2%
B313.7%
B11.7%
B40.1%
Machines authorised by licensing authority permits
There are a number of premises that are entitled to use gaming machines without the operator having to be licensed by the Commission.
Section 282 of the Gambling Act 2005 provides an automatic entitlement to alcohol licence holders to make available two gaming machines (of Category C or D) for use in alcohol-licensed premises upon notification to the licensing authority of their intention to make gaming machines available for use. Licensing authorities can issue gaming machine permits which allow additional Category C and D gaming machines to be provided. Where a gaming machine permit authorises the making available of a specified number of gaming machines in particular premises, this will effectively replace, and not be in addition to, any automatic entitlement to two machines.
Club gaming permits allow the provision of no more than three gaming machines in total. Each of the three machines must be from Categories B3A, B4, C or D but only one B3A machine can be sited, by agreement, as part of this entitlement.
Club machine permits allow the holder to have no more than three gaming machines in total. Members' clubs and miners' welfare institutes may site up to three machines from Categories B3A, B4, C or D but only one B3A machine can be sited, by agreement, as part of this entitlement. Commercial clubs may site up to three machines from categories B4, C or D (not B3A machines).
Unlicensed FECs are able to offer Category D machines if they obtain a gaming machine permit from their local licensing authority. Any number of Category D machines can be made available with such a permit.
There is currently no mechanism in place to accurately record the number or category of machines these types of premises. However, we do know how many permits and notifications were in force as at 31 March 2018. By using the minimum/maximum entitlements and an average of five machines per unlicensed family entertainment centre (UFEC), we can estimate that the following number of machines were available for use through this form of authorisation.
Notification/Permit Type Assumptions March 2017
Alcohol Licensed Premises - Automatic Entitlement4 2 per premise 75,640Alcohol Licensed Premises - Gaming Machine Permit 3 per premise 19,392 Club Gaming Permit 3 per premise 2,592 Club Machine Permit 3 per premise 17,391 Unlicensed FEC (Unlimited) 5 per premise 6,735 Totals 121,750
Table 4: Licensing authority machine numbers (estimations)
4 Alcohol licensed premises have an automatic entitlement to make up to two Category C or D machines available for use without requiring a permit. LAs need to receive a notification form from anyone wishing to take up this entitlement.
8
Participation
The Commission undertakes research to monitor participation in gambling in GB.
Based on the latest data from our quarterly participation survey (year to September 2018), the proportion of respondents participating in gaming machines activity5 was:
• Fruit or slot machines 3.9%• Virtual gaming machines in a bookmakers6 1.6%
The Young Persons Survey (a research study among 11-16 year olds in Great Britain) surveyed that the following prevalent forms of gambling relating to machines in the past week are as follows
• Fruit or slot machines (e.g. at an arcade, pub or club) (3%).• Playing other gambling machines (2%)• Personally visiting a betting shop to play gaming machines (2%)
These rates are assessed to be representative of participation of the GB population as a whole.
Further Commission research on gambling participation can be found on our website.
5 Respondents who answered that they had participated in gambling activities at some point with the 4 weeks prior to the survey.6 Virtual gaming machines in a bookmakers’ is a term broadly used to describe B2 gaming machines (Fixed Odds Betting Terminals).
9
Betting sector
Off-course betting: gaming machines in betting shopsThere is no machine entitlement with on-course or pool betting. The data for betting refers to off-course operators only.
The average total quantity of gaming machines in GB betting shops was 33,496 during this last reporting period (3% decrease compared to the previous period).
Machine Category Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
B2 34,374 34,780 34,516 33,780 32,786B3 58 50 49 59 72C 52 42 29 30 17Total 34,483 34,872 34,594 33,868 32,875
Table 5: Gaming machine numbers (average8)
The total GGY from gaming machines in betting shops was £1.8bn, of which Category B2 machines accounted for 99.9%.
Table 6: Gaming machine GGY (£m)
Machine Category Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
B2 1,567.71 1,681.75 1,746.19 1,820.69 1,713.85B3 1.02 0.92 0.72 1.16 69.99C 0.15 0.31 0.07 0.04 0.47Aggregated categories9 0.26 2.17 0.97 0.09 0.00Total 1,569.14 1,685.15 1,747.96 1,821.97 1,784.31
Figure 7: GGY per machine, all categories combined (£)
7 See note on Appendix 4. 8 Gaming machine numbers fluctuate during the year and as such operators are required to provide their average number of machines.9 Where GGY figures have been provided by operators but not broken down by machine category.
Gaming machines in betting shops accounted for 18.3% of the total number of machines across all licensed gambling sectors.
10
B2 and B3 figures in this report should be viewed with caution as the split between B2 and B3 game play is not clear (and therefore a portion of the GGY attributed to B2 machines will have been generated through B3 game play)7.
45,504
48,324
50,528
53,795 54,275
Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
Off-course combined GGY (gaming machines and betting)Gaming machine GGY decreased by £37.7m compared with April 2016 to March 2017 and now accounts for 57.9% of total betting shop GGY, against a decrease in over the counter GGY of £101.0m.
Figure 8: Off-course betting GGY breakdown (£m)
£486.7m
11
The gap between the two revenue streams for off-course betting widened by £63.3m during the year ending March 2018.
1,2501,3501,4501,5501,6501,7501,8501,950
Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
Over the counter (OTC) Machines
Bingo sector
Gaming machines in bingo clubsThe average total quantity of gaming machines in GB bingo premises was 72,861 (an increase of 7.4% compared to the previous period). Growth was seen in all machine categories.
Gaming machines in bingo premises accounted for 40.2% of the total number of machines across all licensed gambling sectors.
The composition of gaming machines in bingo clubs has changed in recent years. The introduction and widespread use of electronic bingo terminals (EBTs) by a number of providers accounts for much of the increase in Category C machines since April 2011. EBTs are devices that enable a player to participate in bingo electronically and they can choose to purchase a larger number of tickets than they would usually be able to handle from playing on paper. EBTs can also contain other gambling related content such as slot games10.
Machine Category Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
B3 7,557 8,771 11,646 12,544 14,286B4 150 177 176 149 160C 31,691 42,998 44,922 47,749 49,837D 11,238 5,019 7,013 7,395 8,578Total 50,636 56,964 63,757 67,836 72,861
Table 7: Gaming machine numbers (average)
The total GGY from gaming machines in bingo premises was £326.1m, of which Category B3 and Category C machines accounted for 94.8%.
Table 8: Gaming machine GGY (£m)
Machine Category Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
B3 157.30 169.90 183.71 200.50 213.69B4 0.76 0.67 0.80 1.12 1.73C 111.89 110.66 112.27 101.12 95.28D 19.83 18.26 18.19 16.65 15.37Aggregated categories11 5.08 4.15 1.10 1.25 0.00Total 294.86 303.64 316.06 320.63 326.07
Figure 9: GGY per machine, all categories combined (£)
10 Originally introduced to the market as Category D machines, evidence indicates that a number of the EBTs now operate with Category C and B3 content. 11 Where GGY figures have been provided to us by operators, but not broken down by machine category.
12
5,8235,330
4,957 4,727 4,475
Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
All Machines
Bingo combined GGY (gaming machines and bingo games)Gaming machine GGY increased by £5.4m compared with April 2016 to March 2017 and now accounts for 47.4% of total bingo GGY, against a decrease in bingo games GGY of £4.4m.
Figure 10: Bingo sector breakdown of GGY (£m)
13
The gap between the two revenue streams for bingo decreased by £9.8m during the year ending March 2018.
250275300325350375400425
Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
Bingo Games Machines
£36.15m
Casino sector
Gaming machines in casinosThe average total quantity of gaming machines in GB casino premises was 3,204 (an increase of (1.0%) compared to the previous period). Since April 2013 – March 2014 the number of B1 machines have increased by 377 (14.2%).
Table 9: Gaming machine numbers (average)
Machine Category Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
B1 2,657 2,630 2,806 2,981 3,034B2 175 169 185 191 170B3 14 4 0 1 0Total 2,846 2,804 2,991 3,172 3,204
Casino gaming machine GGY was £207.2m, an increase of 0.2% on the previous period. Since April 2013 – March 2014 the GGY from B1 machines have increased by £47.4m (32.5%).
Table 10: Gaming machine GGY (£m)
Machine Category Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
B1 145.88 157.50 181.78 192.27 193.23B2 9.56 10.84 13.81 14.36 13.95B3 0.45 0.18 0.01 0.04 0.00Total 155.89 168.52 195.60 206.67 207.18
Figure 11: GGY per machine, all categories combined (£)
Gaming machines in casino premises accounted for 1.8% of the total number of machines across all licensed gambling sectors.
14
54,766
60,105
65,388 65,149 64,660
Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
Casino combined GGY (gaming machines and casino games)Gaming machine GGY increased by £0.5m compared with April 2016 to March 2017 and now accounts for 17.4% of total casino GGY. Casino games GGY also saw an increase of £27.2m. The gap between the two revenue streams for casino increased by £26.6m during the year ending March 2018.
Figure 12: Casino GGY (£m) revenue source yearly comparison
15
0200400600800
1,000
Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
Casino Games Machines
£776.8m
Arcades sector
Gaming machines in Adult Gaming CentresThe average total quantity of gaming machines in AGC premises was 54,915 (a decrease of 5 compared to the previous period). Decline was seen in all machine categories with the exception C.
Table 11: AGC machine numbers (average)
Machine Category Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
B3 9,673 9,774 10,680 10,925 10,453B4 69 135 118 73 47C 28,182 27,686 29,656 30,060 30,861D 15,651 14,663 14,826 13,862 13,555Total 53,575 52,257 55,280 54,921 54,915
AGC GGY was £361.04m, an increase of 1.3% compared to the year ending March 2017. Since April 2013 – March 2014 the GGY from B3 machines have increased by £62.9m (43.5%).
Table 12: AGC machine GGY (£m)
Machine Category Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
B3 144.46 155.76 175.60 197.50 207.34B4 0.19 0.34 0.38 0.31 0.40C 105.41 109.63 120.08 127.86 128.67D 26.09 25.37 25.29 25.39 24.62Aggregated categories12 35.91 26.30 23.89 5.44 0.00Total 312.06 317.40 345.25 356.50 361.04
Figure 13: GGY per machine, all categories combined (£)
12 Where GGY figures have been provided, but not broken down by machine category.
Gaming machines in AGC premises accounted for 30.3% of the total number of machines across all licensed gambling sectors.
16
5,825
6,074
6,245
6,491 6,574
Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
Gaming machines in Family Entertainment CentresThe average total quantity of gaming machines in FEC premises was 17,453 (a decrease of 22.1% compared to the previous period).
Gaming machines in FEC premises accounted for 9.6% of the total number of machines across all licensed gambling sectors.
Table 13: Licensed FEC machine numbers (average)
Machine Category Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
C 2,005 2,279 2,216 1,982 1,562D 27,093 23,616 23,037 20,425 15,891Total 29,098 25,895 25,253 22,407 17,453
Gaming machine GGY in FECs decreased this period, by 12.6%, to £56.9m.
Table 14: Licensed FEC GGY (£m)
Machine Category Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
C 3.45 4.14 3.73 3.27 2.61D 56.01 59.42 63.55 60.32 54.33Aggregated categories13 7.59 6.26 5.54 1.55 0.00Total 67.05 69.83 72.81 65.14 56.95
Figure 14: GGY per machine by category (£)
13 Where GGY figures have been provided but not broken down by machine category.
17
2,304
2,6962,883 2,907
3,263
Apr 2013Mar 2014
Apr 2014Mar 2015
Apr 2015Mar 2016
Apr 2016Mar 2017
Apr 2017Mar 2018
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Appendix 3 - Gaming machine categorisationMachine category Maximum stake Maximum prize
B1 £5 £10,00014
B2 £10015 £500B3 £2 £500B3A £2 £500B4 £2 £400C £1 £100D non-money prize (other than crane grab machine or a coin pusher or penny falls machine)
30p £8
D non-money prize (crane grab machine) £1 £50
D money prize (other than a coin pusher or penny falls machine)
10p £5
D combined money and non-money prize (other than coin pusher or penny falls machines) 10p
£8(of which no more than £5 may be a
money prize)
D combined money and non-money prize (coin pusher or penny falls machines) 20p
£20 (of which no more than £10 may be a
money prize)
14 With the option of a maximum £20,000 linked progressive jackpot on a premises basis only.15 Maximum stake is due to change April 2019 from £100 to £2.
Further information on machine entitlement can be seen in the Commission’s Guidance to licensing authorities (Appendix A).
Appendix 4 - TerminologyAdult gaming centre (AGC) – an arcade comprising a limited number of B3 and B4 machines and an unlimited number of category C and D machines. No one under the age of 18 is allowed to enter.
Family entertainment centre (FEC) – an arcade comprising unlimited category C and D machines. Under 18s are allowed in FECs but not into the area offering category C machines.
Gross gambling yield (GGY) – the amount retained by operators after the payment of winnings but before the deduction of the costs of the operation.
Sector – there are six industry licensed sectors regulated by the Commission – arcades (AGCs and FECs), betting, bingo, casinos, lotteries and remote and gambling software (which includes remote betting, bingo and casinos).
20
B2/B3 Category Machines – Notes
In submitting regulatory return information for a machine or a terminal which offers games that equate to different machine categories, operators are required to submit information based on the highest category of game available. For example, if a terminal offers Category B2 and B3 games, operators are advised to count this as a Category B2 terminal. For this reason, the B2 and B3 figures presented in this report should be viewed with caution as the split between B2 and B3 game play is not clear (and therefore a portion of the GGY attributed to B2 machines will have been generated through B3 game play). With all returns submitted from April 2018, operators will have to confirm the split of GGY between B2 and B3 game play.
Responsible statisticians:
Andrew DixonSenior Officer – Analyst (Industry Statistics Specialist)
Joanne WarrenAdvanced Analytics Manager
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
Gambling Commission Published January 2019
making gambling fairer and safer
