UNDERSTANDING The GAMBLING CONSUMER Presentation by Joy Masimane - PowerPoint PPT Presentation

UNDERSTANDING The GAMBLING CONSUMER Presentation by Joy Masimane

What would you do if you won the lottery today?

Samuel Abisai • 28 years old • Sportpesa Jackpot in 2017 • Ksh 221,301,602 million • Background: Had grown up in poverty in rural Kakamega. Nairobi University graduate • After winning the large sum, he set up a fashion house abroad as he moved to the Netherlands

Joseph Onywera • Kisumu • Lives in a mud house • Betway KSh 20 million jackpot May 2016 • Sportpesa KSh 800,000 in July 2016 • Now involved in a number of charities in his Kisumu hometown

Presentation Outline Overview 1 The BOP gambling consumer 2 Consumption and gambling 3 behavior Drivers, motivations & decision 4 making patterns Conclusions 5

Background Overview 1 The BOP gambling consumer 2 Consumption and betting 3 behavior Drivers, motivations & decision 4 making patterns Conclusions 5

Quick Facts: Gambling in Kenya 1.Gross gambling jumped by 57.6% in 2014 2.FY 16/17 gross gambling revenue Ksh 20 billion 3.Top 2 Adverting spenders Q1,Q2 ‘ 18 4.More than 30 licensed betting firms and casinos 5.KES 230M highest jackpot, Feb’ 18

Defining the BOP gambling Consumer Overview 1 The BOP gambling consumer 2 Consumption and gambling 3 behavior Drivers, motivations & decision 4 making patterns

Research Design Analysis: Quantitative • Instrument: Structured questionnaire, 35 questions • Method: Mobile SMS • Source: Randomly targeted from the GeoPoll • database. Sample: n=1300 (n=313 DE) • MOE +/-3%, @95% confidence level • Respondent Male/Female: 50%/50% • details: 18-25: 43% | 26-35: 33% | 36-45: 24% • Nationwide • Location: 44/47 counties. Excluded Wajir, Garissa & • Mandera Fieldwork Dates: • April 2018

Who is a BOP Gambling Consumer? GeoPoll Research Findings

The poor make up half of Kenya’s population LSM SEC Proportion LSM 12+ AB 5% LSM 8 to 11 C1 15% LSM 5 to 7 C2 26% LSM 3 to 4 D 36% LSM 1 to 2 E 18% Total 100% Source: KARF Establishment Survey 2015 • The lowest social economic class LSM DE constitute 54% of the country

Gambling Penetration Almost half (48%) participate in betting, higher than casino/ gaming (36%) and lottery (30%). BETTING CASINO/ GAMING LOTTERY 75% 61% 51% 48% 36% 30% Total (1300) LSM DE (313) Total (1300) LSM DE (313) Total (1300) LSM DE (313)

Consumer Gambling behavior Overview 1 The BOP gambling consumer 2 Consumption and gambling 3 behavior Drivers, motivations & decision 4 making patterns Conclusions 5

Gambling Frequency Sports betting has higher levels of interaction compared to Casino gaming and lotteries CASINO/ GAMING BETTING LOTTERY 12% 13% 13% 16% 19% 21% 6% 7% 13% 13% 9% 16% More than 5 times 32% 42% 28% 33% 40% 4-5 times 42% 2-3 times 49% 43% 40% 38% Once a week/Less 30% 20% Total LSM DE Total LSM DE Total LSM DE (797) (112) (973) (150) (661) (93)

Products Used BOP betting consumers significantly prefer the jackpot Total LSM DE 45 42 42 39 36 34 33 33 30 28 28 25 24 23 20 19 18 18 13 13 12 11 9 7 Cards Slots Roulette Other Jackpot Live Fixed Virtual Other Hourly Weekly Other CASINO/ GAMING BETTING LOTTERY

Preferred Method SMS is outstandingly the most preferred gambling method Total LSM DE 47 37 36 35 34 34 32 30 28 27 26 24 24 23 19 19 18 13 9 9 9 8 7 5 5 5 5 4 4 4 3 3 2 2 3 2 2 2 2 1 0 0 Mobile App Mobile Browser SMS Going to a casino Desktop Browser USSD Other Mobile Browser Mobile app SMS Desktop Browser USSD Shop Other SMS Mobile Browser Mobile App Desktop Browser USSD Kiosk/Booth Other CASINO/ GAMING BETTING LOTTERY

Amount per Game (LSM DE) Majority of those who do sports betting (64%) will spend a higher range of KSH 50-100 per bet Casino/ Gaming (70) Betting (85) Lottery (47) 64% 47% 39% 36% 34% 16% 14% 13% 6% 6% 4% 4% 4% 3% 3% 1% 1% 1% 1% 1% 0% 0% 0% 0% Less than 50 50-100 101-200 201-500 501-1000 1001-2000 2001-5000 Over 5000

Amount per Day (LSM DE) Majority, game once in a day specific to betting and lottery participation Casino/ Gaming (70) Betting (85) Lottery (47) 49% 49% 31% 26% 25% 17% 17% 17% 9% 9% 9% 8% 7% 6% 4% 4% 3% 2% 2% 2% 2% 1% 0% 0% Less than 50 50-100 101-200 201-500 501-1000 1001-2000 2001-5000 Over 5000

Drivers and motivators Overview 1 The BOP gambling consumer 2 Consumption and gambling 3 behavior Drivers, motivations & decision 4 making patterns Conclusions 5

Unemployment

Mobile & Internet penetration

Ease of alternative/ ‘agency’ access

Sports Enthusiasm

Access To Information

Conclusions Overview 1 The BOP gambling consumer 2 Consumption and gambling 3 behavior Drivers, motivations & decision 4 making patterns Conclusions 5

Conclusions: The BOP Gambling Consumer

e: jpmurunga@geopoll.com t: +254 726 716 653 e: joy.masimane@geopoll.com t: +254723 774 191 THANK YOU!