Australian race betting losing market share – analysis

Sports together with events betting is chop-chop gaining marketplace part from traditional race betting inward Australia, analysis suggests.

Industry together with marketplace research theatre IBISWorld has updated its study on the Equus caballus together with sports betting manufacture inward Australia.

It says the emergence of betting websites together with the increasing popularity of sports together with events betting are changing the human face upward of the industry.

The Equus caballus together with sports betting manufacture is undergoing major alter equally governments abandon their holdings inward state-based TAB operations to effectively prepare a national wagering market, the fellowship says.

Private betting websites are besides gaining a greater foothold inward the market, due to changing consumer require together with preferences together with improved access to betting websites.

“Sports together with events betting, piece notwithstanding depression inward revenue price compared alongside racing betting, is the fastest growing segment inward the industry,” IBISWorld manufacture analyst Craig Shulman said.

The segment provides sports together with events fans together with professional person punters the chance to wager on a broad make of sports together with events, which has opened upward a novel marketplace for these providers.

These heavily promoted activities are eating away at the declining part that the thoroughbred racing segment holds inward the industry.

Over the 5 years through 2013-14, manufacture revenue (revenue retained yesteryear the manufacture later on handing out winnings) is expected to grow at an annualised 2.4 percent. Revenue is forecast to total $A3.5 billion inward 2013-14, which is downward 1.5 pct on the previous year.

While betting activities are expected to drib dead along to motility online, the manufacture faces a serial of challenges over the side yesteryear side 5 years, the theatre suggests.

Traditional TAB retailers volition combat to stay relevant alongside the new-found conveniences of the internet.

Shulman continues: “The 2012 High Court determination to permit nation racing authorities to cause got a part of revenue instead of gross turn a profit is expected to brand a dent inward bookmakers’ turn a profit margins.”

The high grade of marketing is besides attracting a lot of attending together with led to a parliamentary inquiry, which resulted inward a restriction on marketing activities.

However, the manufacture has attracted to a greater extent than international attending equally betting juggernauts from Europe facial expression to create growth inward the Australian market, which is expected to Pb to greater contest together with innovation.

The tumble out 4 operators trouble organisation human relationship for the bulk of manufacture revenue, important the Equus caballus together with sports betting manufacture has a really high grade of ownership concentration.

This high concentration is related to the wagering segment, which directly effectively operates equally a single, national market.

The high grade of merger together with acquisition action from the populace float or sale of onetime state-owned TAB operations has besides contributed to the high concentration inward the industry.

For the bookmakers segment, concentration is significantly lower together with ofttimes these businesses tin survive small, sole-trading enterprises. However, online bookmakers tend to survive larger operations, together with then concentration inward this segment volition growth equally the online marketplace grows.

The industry’s major players are Tabcorp Holdings, Tatts Group, Racing Victoria, Racing together with Wagering Western Commonwealth of Australia together with Paddy Power Australia.

The study is available for purchase.

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