Press Release – The Horse and Sports Betting industry is undergoing significant change as governments abandon their holdings in state-based TAB operations to effectively develop a national wagering market. Private betting websites are also gaining a greater foothold in the market, due to changing consumer demand and preferences and improved access to betting websites. IBISWorld industry analyst Craig Shulman states, “Sports and events betting, while still low in revenue terms compared with racing betting, is the fastest growing segment in the industry.” The segment provides sports and events fans and professional punters the opportunity to wager on a wide range of sports and events, which has opened up a new market for these providers. These heavily promoted activities are eating away at the declining share that the thoroughbred racing segment holds in the industry. Over the five years through 2013-14, industry revenue (revenue retained by the industry after handing out winnings) is expected to grow at an annualised 2.4%. Revenue is forecast to total $3.5 billion in 2013-14, which is down 1.5% on the previous year.
While betting activities are expected to continue to move online, the industry faces a series of challenges over the next five years. The traditional TAB retailers will struggle to remain relevant with the new-found conveniences of the internet. According to Shulman, “The 2012 High Court decision to allow state racing authorities to take a share of revenue instead of gross profit is expected to make a dent in bookmakers’ profit margins.” The high level of marketing is also attracting a lot of attention and led to a parliamentary inquiry, which resulted in a restriction on marketing activities. However, the industry has attracted more international attention as betting juggernauts from Europe look to create growth in the Australian market, which is expected to lead to greater competition and innovation.
