Melbourne, Australia (PRWEB) October 03, 2012
The Clubs industry has been going through some turbulent times. Before 2006, a steady increase in gaming machine numbers, along with lax smoking laws, brought prosperity to the industry. However, many state governments have since introduced caps on the total number of gaming machines allowed in each club, in addition to other operational restrictions. Restrictions on gaming machines initiated by state governments will significantly affect the performance of the industry over the medium term. Furthermore, strict smoking bans that have come into force in some states since 2006 have forced the industry to adjust its operations and rely further on gaming machine revenue. In addition, the industry faces intense competition from other licensed venues, particularly hotels, pubs and casinos, which also offer gaming facilities. According to IBISWorld Industry analyst Craig Shulman, “competition from pubs and casinos with gaming machines has increased significantly over the past five years and is expected to continue”. As a result of these factors, industry revenue is estimated to only increase at an annualised 2.4% over the past five years, despite 2012-13 recording 9.5% growth from the previous year, as a result of forecast solid economic growth and the shift of gaming machine revenue in Victoria from Tatts Group and Tabcorp to the venues themselves. During 2012-13, the industry is expected to generate $11.2 billion in revenue.
Over the five years through 2017-18, the industry is expected to continue to be affected by tightening restrictions and regulations. New restrictions and changes to the industry's operating environment will vary from state to state. “In many ways, Victoria is moving towards the system that already applies in New South Wales and Queensland, although with a far lower number of gaming machines available”, Shulman adds. Revenue for the Clubs industry is expected to increase marginally over the next five years.
Overall, the Clubs industry has a low level of market share concentration with ownership being in the hands of club members. Some clubs, however, operate over multiple sites. While there has been some recent consolidation activity among the top operators, the majority of clubs are still expected to be small, and owned and managed by members.
For more information, visit IBISWorld’s Clubs report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
This report relates to clubs or associations in the sporting (e.g. lawn bowls, golf, surf lifesaving, rugby, football and soccer), social (such as RSL clubs) or recreational areas that are licensed to sell alcoholic beverages. It also covers unlicensed clubs, which do not have a liquor licence, and clubs that have gambling licences. This report does not cover racing clubs.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.