The odds were against them: Intense competition is driving industry consolidation and exits

The Horse and Sports Betting industry has undergone significant change over the past five years. Online and mobile betting websites have gained a greater foothold in the market due to changing consumer preferences and the improved accessibility of these websites. Increasing internet connectivity and spectator sport participation rates have further contributed to the industry's positive performance over the period. Industry revenue is forecast to increase at an annualised 5.1% over the five years through 2017-18. However, rising competition from other gambling activities, and declines in horseracing attendances and on-course totalisator wagering have slightly restricted the industry's pace of expansion of the period...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
5.1%
Forecast Growth 18-23
Profit
Employment
7,340
Businesses
911

Industry Threats & Opportunities

  • The growing popularity of online and mobile betting websites has aided industry revenue growth
  • Online betting has reduced industry employment, as less face-to-face interaction has been required
  • Industry profitability is anticipated to remain strong and improve marginally
  • Industry Report - Industry Analysis Chapter

    The Horse and Sports Betting industry has grown consistently over the past five years due to the rising popularity of online and mobile betting platforms. Several factors have influenced the industry’s performance, including gambling expenditure, demand for other gambling activities, the number of household internet connections and spectator sport participation. The popularity of more traditional betting formats such as on- and off-course totalisators has declined over the past five years. However, this decline has been more than offset by strong growth in fixed-odds betting, which has largely been led by foreign-owned bookmakers and smaller niche operators.Revenue and profitabilityIndustry revenue is forecast to grow at an annualised 5.1% o...purchase to read more.

    Additional Insights for the Horse and Sports Betting Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Horse and Sports Betting Industry are

  • Market research and understanding
  • Experienced workforce
  • Production of premium goods and services
  • IBISWorld analysts also discuss how external factors such as Per capita gambling expenditure and Spectator sport participation in the Horse and Sports Betting industry impact industry performance..

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    What's in this report

    What is the Horse and Sports Betting Industry?

    Industry operators provide gambling services, including totalisator and betting services. Wagers are generally placed on horseraces and sports matches. The industry includes online gambling services but excludes casinos and lottery operations.

    Industry Products
  • Sports betting
  • Horserace betting at TABs
  • Harness race betting at TABs
  • Other race betting
  • Industry Activities
  • Betting shop operation
  • Bookmaker operation
  • Gambling website operation
  • Totalisator agency board (TAB) operation
  • Totalisator agency operation
  • 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
  • Spectator sport participation
  • Demand from casinos
  • Internet connections
  • Demand from lotteries

  • Current Performance
  • Revenue and profitability
  • Competitive landscape
  • Regulation
  • Advertising
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Industry changes
  • Challenges
  • Table: Horse and Sports Betting Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Horse and Sports Betting Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Pubs, Bars and Nightclubs
  • Social Clubs
  • Consumers

  • Key Selling Industries
  • Data Storage Services
  • Horse and Dog Racing
  • Pay Television
  • Radio Broadcasting

  • Products & Services
  • Horserace betting at TABs
  • Sports betting
  • Other race betting
  • Harness race betting at TABs
  • Chart: Horse and Sports Betting Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 50 and over
  • People aged 30 to 39
  • People aged 40 to 49
  • People aged 18 to 29
  • Chart: Major Market Segmentation for the Horse and Sports Betting Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Taxes and levies
  • Commissions
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Horse and Sports Betting

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Horse and Sports Betting Industry

  • Industry Globalization
    Tabcorp Holdings Limited, Paddy Power Australia Pty Limited, Racing and Wagering Western Australia, Crownbet Holdings Pty Limited,
  • Table: Tabcorp Holdings Limited - financial performance
  • Table: Paddy Power Australia Pty Limited - financial performance
  • Table: Racing and Wagering Western Australia - financial performance
  • Table: Crownbet Holdings Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Horse and Sports Betting 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 Horse and Sports Betting Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Parimutuel Betting
  • Parimutuel betting determines the odds and payouts of the event only once all bets have been placed and the event has finished.
  • Totalisator
  • An automated system of betting on races. It dispenses and records betting tickets and calculates and displays odds. This system also provides a mechanism for cashing in winning tickets.
  • Totalisator Agency Board (Tab)
  • A gambling outlet that provides horse and sports betting facilities to consumers.
  • Wagering
  • The act of placing money or something of material value on an event with an uncertain outcome, in attempt to earn money based on the likeliness of the outcome.
  • What Our Customers Say

    Why buy this report?

    The Horse and Sports Betting 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:
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    This report on Horse and Sports Betting:
    • 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 Horse and Sports Betting 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 Horse and Sports Betting, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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