Taking a gamble: Industry revenue has declined following strict gaming machine regulations

Regulatory constraints and fierce competition among gambling providers have negatively affected the Social Clubs industry over the past five years. Tight state and territorial legislation has limited industry growth over the period, as the industry derives just under 50% of its revenue from gambling. In addition, declining per capita alcohol consumption has negatively influenced liquor sales over the past five years. Industry revenue is expected to decline at an annualised 0.1% over the five years through 2018-19, to $12.6 billion. This includes an anticipated growth of 0.6% in the current year.In addition to regulatory threats, industry operators face intense competition from other licensed venues offering gaming facilities, particularly hotels, pubs and casinos...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Operators have faced intense competition from other licensed venues offering gaming facilities
  • Caps on gaming machines and other regulations have affected gambling revenue
  • Projected per capita alcohol consumption declines are likely to limit industry growth
  • Industry Report - Industry Investment Chapter

    The Social Clubs industry is moderately capital-intensive. In 2018-19, for every dollar spent on capital, an estimated $4.93 is spent on wages. The industry relies heavily on labour to deliver core services such as food and liquor preparation, customer service and entertainment. However, many players incur large depreciation costs due to building ownership and the capital-intensive nature of gaming machines. Gaming machines provide the primary source of revenue for many businesses. Industry businesses that have no gaming-related revenue are more labour-intensive than those that have gaming machines. Cap...purchase to read more.

    Additional Insights for the Social Clubs Industry

    IBISWorld has determined the most important Key Success Factors for the Social Clubs are:

  • Capacity to objectively assess new investments
  • Superior financial management and debt management
  • Business expertise of operators
  • IBISWorld analysts also discuss how external factors such as Per capita gambling expenditure and Real household discretionary income in the Social Clubs industry impact industry performance..

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    What's in this report

    What is the Social Clubs Industry?

    The industry includes gambling, sporting, recreational and social (such as RSL) clubs or associations that generate income predominantly from hospitality services. Clubs that mainly provide sporting services, including racing clubs, are not included in the industry. The industry covers both licensed and unlicensed clubs, and clubs with gambling licences.

    Industry Products
  • Gambling
  • Liquor sales
  • Food and other beverage sales
  • Membership and visitor fees
  • Sponsorship and fundraising
  • Leasing and hiring of facilities
  • Other services
  • Industry Activities
  • Operating clubs with gambling facilities
  • Operating clubs without gambling facilities
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita gambling expenditure
  • Real household discretionary income
  • Demand from pubs, bars and nightclubs
  • Average weekly hours worked

  • Current Performance
  • Government regulations
  • Competition
  • Profitability
  • Club offerings
  • Chart: Revenue Growth

  • Industry Outlook
  • Gambling regulation
  • Competition
  • Table: Social Clubs Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Social Clubs Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Beer Manufacturing
  • Gaming and Vending Machines Manufacturing
  • General Line Grocery Wholesaling
  • Liquor Wholesaling
  • Wine Production

  • Products & Services
  • Gambling
  • Liquor sales
  • Food and other beverage sales
  • Membership and visitor fees
  • Sponsorship and fundraising
  • Other services
  • Leasing and hiring of facilities
  • Chart: Social Clubs Industry Products and Services Segmentation

  • Demand Determinants
  • Gaming machines
  • Government regulations
  • Alcohol consumption trends

  • Major Markets
  • Consumers aged 41 to 54
  • Consumers aged 26 to 40
  • Consumers aged 55 and over
  • Consumers aged 18 to 25
  • Chart: Major Market Segmentation for the Social Clubs Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Social Clubs

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Social Clubs Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Social Clubs Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Social Clubs Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Food Service
  • The act of providing food and beverage to club patrons.
  • Gaming Machines
  • A gambling machine where a range of games for money can be played. Also known as poker machines, slot machines and pokies.
  • Pre-Commitment Technology
  • Technology on gaming machines that limits either time or money spent gambling.
  • What Our Customers Say

    Why buy this report?

    The Social Clubs market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Social Clubs:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Social Clubs market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Social Clubs, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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