Melbourne, Australia (PRWEB) September 02, 2014
The performance of the Lotteries industry in Australia has fluctuated over the past five years. Industry revenue is estimated to grow at a compound annual rate of 1.0% over the five years through 2014-15, following stabilised growth over the past three years. Lottery operators have faced increasing external competition from alternate forms of gambling. Horse and sports betting, poker and gaming machines and other online gambling platforms have all become increasingly popular over the past five years, and gradually accounted for a greater proportion of gamblers' discretionary income. The industry's dominant player, Tatts Group, has consolidated its position over the past five years, through acquisitions of the New South Wales and South Australian lotteries commissions in 2010 and 2012, respectively. According to IBISWorld industry analyst Spencer little, “lottery operators have increased the frequency of lotto draws to increase consumer interest and expenditure.” In the lotto segment, a series of jackpot prizes has helped to attract infrequent players to the game. However, this strategy has sometimes been to the detriment of other weekly lottery draws. In 2014-15, revenue is estimated to increase by 1.6%, to reach $6.7 billion.
Over the next five years, the industry is expected to perform slightly better than it has over the past five years, as “lottery operators are anticipated to benefit from greater per capita expenditure on gambling activities,” says Little. However, consumers are projected to spend more on sports betting services and online gambling platforms over this period, which would limit industry growth. Operators are forecast to further consolidate, with the potential implementation of a privatised national lottery system expected to radically alter operating conditions in the industry over the next five years. There may be potential growth for lottery-style products such as online instant-win lotteries, which may appeal to younger demographics, who represent the industry's most untapped market.
The Lotteries industry displays a high level of market share concentration. The industry's major players are Tatts Group Limited, Lotteries Commission of Western Australia and Tabcorp Holdings Limited. Tatts Group alone is estimated to account for the majority of industry revenue in 2014-15, following its acquisitions of the New South Wales and South Australian lotteries commissions in April 2010 and November 2012, respectively. These acquisitions have also contributed to increasing market share concentration over the past five years. The Lotteries Commission of Western Australia is now the only government-run lotteries system in Australia and has significant market share due to its operation of all of the lotteries in the state.
For more information, visit IBISWorld’s Lotteries industry in Australia report page.
Companies in this industry primarily operate lotteries or sell lottery tickets. A lottery is defined as a prize draw that players must pay to enter, with winners drawn randomly by lot. Firms that mainly operate lotto-style games and football pools are also included in the industry.
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IBISWorld industry Report Key Topics
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
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