Melbourne, Australia (PRWEB) February 18, 2013
The Clubs industry in Australia has survived 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. According to IBISWorld Industry analyst Andy Brennan, ‘for an industry that now derives the majority of its revenue from gambling, these have been unwelcome developments’. Furthermore, strict smoking bans that came into force in most states and territories since 2006 have forced operators in the industry to adjust their facilities to comply. In addition to regulatory threats, the industry faces intense competition from other licensed venues, particularly hotels, pubs and casinos, which also offer gaming facilities. Competition from pubs and casinos with gaming machines has increased significantly over the past five years and this is expected to continue. As a result of these factors, industry revenue is estimated increase at an annualised rate of just 1.3% over the five years through 2012-13, despite growth of 5.9% in 2012-13. Robust growth in 2012-13, expected to take the industry's annual revenue to $10.8 billion, is largely attributable to the robust economy and the shift of gaming machine revenue in Victoria from Tatts Group and Tabcorp to the venues themselves.
Over the five years through 2017-18, the industry is expected to continue to be affected by tightening restrictions and regulations. At the national level, new legislation, which places voluntary pre-commitment technology on poker machines and limits ATM withdrawals in clubs will not be enforced until at least 2018. ‘Although mandatory pre-commitment technology will be tested in the ACT in 2013 it may not gain the political capital to be implemented nationally’, says Brennan. However, states and territories continue to closely monitor the affect poker machines have on communities. Club operators will watch any adverse developments nervously. Increasing competition, uncertain economic conditions and other factors are also expected to take their toll on industry growth over the five-year period. Revenue for the Clubs industry is expected to increase over the next five years.
Overall, the Clubs industry in Australia 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 consolidation activity among the top operators recently, the majority of clubs are still expected to be small, and owned and managed by members. No companies in the industry have a significant market share; however, the largest operators are Penrith Rugby League Club and Melbourne Cricket Club.
For more information, visit IBISWorld’s Clubs report in Australia industry page.
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IBISWorld industry Report Key Topics
This report relates to clubs or associations in the gambling, sporting, social (such as RSL clubs) or recreational areas that generate income predominantly from the provision of hospitality services. Clubs whose main activity is the provision of sporting services, including racing clubs, are not included within the scope of this industry. The industry covers both licensed and unlicensed clubs and clubs that have gambling licences.
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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