Industry Analysis & Industry Trends
The Social Clubs industry has been going through some turbulent times. Before 2006-07, a steady increase in gaming machine numbers and 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, and other operational restrictions. For an industry that now derives close to 60% of its revenue from gambling, these have been unwelcome developments. Furthermore, strict smoking bans that have come into force in most states and territories have forced operators to adjust their facilities to comply.
In addition to regulatory threats, the industry faces intense competition from other licensed venues that also offer gaming facilities, particularly hotels, pubs and casinos... purchase to read more
Industry Report - Industry Locations Chapter
In terms of number of clubs, the industry is concentrated in New South Wales (which has 41.9% of organisations) and Queensland (with 21.2%). Both of these states have an extensive network of clubs with gaming machines and have evolved through their gaming and liquor licensing laws. Both states also earn significantly more revenue than their share of venues suggests because their venues have a higher percentage of gaming machines.
In New South Wales, gaming machines were initially introduced in 1956, which has given the state a significant advantage in terms of market share of the Social Clubs industry... purchase to read more