Private betting websites are gaining a greater foothold in the market
Melbourne, Australia (PRWEB) March 26, 2013
Sports and events betting, while still low in revenue terms compared with racing, is now the fastest-growing segment in the Horse and Sports Betting industry. The segment provides sports and events fans and professional punters the opportunity to wager on a wide range of sports and events, which according to IBISWorld industry analyst Craig Shulman, “has opened up a new market for these providers.” These heavily promoted activities are eating away at the declining share that the major segment, thoroughbred racing, holds in the industry. This decline is expected to continue as sporting activities remain popular and will be naturally promoted by media organisations. Consequently, over the five years through 2012-13, industry revenue (revenue retained by the industry after handing out winnings) is expected to grow.
The top four operators account for the majority of industry revenue, meaning the Horse and Sports Betting industry has a very high level of ownership concentration. This high concentration is related to the wagering segment, which now effectively operates as a single, national market. The high level of merger and acquisition activity from the public float or sale of former state-owned TAB operations has also contributed to the high concentration in the industry. For the bookmakers segment, “concentration is significantly lower and often these businesses can be small, sole-trading enterprises,” says Shulman. However, online bookmakers tend to be larger operations, so concentration in this segment will increase.
While betting activities are expected to continue to move online, the Horse and Sports Betting industry faces a series of challenges over the next five years, which are expected to slow industry growth. The traditional TAB retailers will continue to struggle to remain relevant with the newfound conveniences of the internet. The High Court decision to allow state racing authorities to take a share of revenue instead of gross profit is expected to make a dent into bookmaker profit margins. The high level of marketing is also attracting a lot of attention, and has now led to a parliamentary inquiry, which may lead to a restriction on marketing activities. Furthermore, the industry is also expected to attract more international attention as betting juggernauts from Europe look to create growth in the Australian market. As a result, industry revenue is expected to increase over the five years through 2017-18.
For more information, visit IBISWorld’s Horse and Sports Betting report in Australia industry page.
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IBISWorld Industry Report Key Topics
Businesses in this industry provide totalisator, betting and other gambling services, excluding casino and lottery operation. The industry includes TABs, on-course totes, bookmakers and wagering websites.
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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