Against the odds: Revenue grows despite strong competition from alternative forms of gambling

The Lotteries industry’s performance has fluctuated over the past five years. Overall, industry revenue is expected to grow at an annualised 0.9% over the five years through 2017-18, to reach $7.2 billion. Lottery operators face strong external competition from alternative forms of gambling. Horse and sports betting, poker and gaming machines, and other online gambling platforms have all become increasingly popular over the past five years, and have gradually accounted for a greater proportion of gamblers’ discretionary income. Industry revenue is expected to grow by 1.2% in the current year, limited by the increasing popularity of rival forms of gambling.Industry operators have introduced new games and made lotto draws more frequent to increase consumer interest and more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • The industry has continued to grow despite competition from other forms of gambling
  • Sports betting has become a major form of competition for industry operators
  • Online and digital channels are anticipated to continue reducing industry wage costs
  • Industry Report - Industry Analysis Chapter

    The Lotteries industry’s performance has fluctuated over the past five years as operators have faced numerous challenges. Fierce competition from alternative forms of gambling has reduced demand for lottery services, and limited industry revenue growth. Poker and gaming machines in pubs, clubs and casinos, and horse and sports betting services have increasingly challenged lotteries for a share of gamblers’ discretionary income. Despite this, industry revenue has continued to grow due to significant consolidation by the industry’s largest player over the past five years.Revenue and profitabilityOverall, industry revenue is expected to increase at an annualised 0.9% over the five years through 2017-18, to reach $7.2 billion. Ind...purchase to read more.

    Additional Insights for the Lotteries Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Lotteries Industry are

  • Effective product promotion
  • Development of new products
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Per capita gambling expenditure and Number of poker and gaming machines in the Lotteries industry impact industry performance..

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    What's in this report

    What is the Lotteries Industry?

    Industry firms primarily operate lotteries and sell lottery tickets. A lottery is a prize draw that players pay to enter, with winners drawn randomly by lot. Firms that operate lotto-style games and football pools are also included in the industry.

    Industry Products
  • Lotto
  • Instant lotteries
  • Keno
  • General draw lotteries
  • Other minor games
  • Soccer pools
  • Industry Activities
  • Lottery operation
  • Lottery agency operation
  • Football pool operation
  • Keno operation
  • Art union 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
  • Number of poker and gaming machines
  • Real household discretionary income
  • Demand from horse and sports betting
  • Population aged 50 and older

  • Current Performance
  • Revenue and profitability
  • Fierce competition
  • Consolidation and innovation
  • Lottery jackpots
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Fierce competition
  • Consolidation and innovation
  • Lottery jackpots
  • Table: Lotteries Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Newspaper and Book Retailing
  • Pubs, Bars and Nightclubs
  • Convenience Stores
  • Consumers

  • Key Selling Industries
  • Data Storage Services
  • Free-to-Air Television Broadcasting
  • Printing

  • Products & Services
  • Lotto
  • Keno
  • Instant lotteries
  • General draw lotteries
  • Other minor games
  • Soccer pools
  • Chart: Lotteries Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Players aged 45 to 54
  • Players aged 65 and over
  • Players aged 55 to 64
  • Players aged 35 to 44
  • Players aged 25 to 34
  • Players aged 18 to 24
  • Chart: Major Market Segmentation for the Lotteries 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 Lotteries

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Lotteries Industry

  • Industry Globalization
    Tabcorp Holdings Limited, Lotteries Commission of Western Australia,
  • Table: Tabcorp Holdings Limited - financial performance
  • Table: Lotteries Commission of Western Australia - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Lotteries 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 Lotteries Industry
  • 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
    Division One Jackpot
  • A lottery draw where no players win the division one prize pool.
  • Lottery Agent
  • A retailer that is approved to sell lottery tickets.
  • Quick Pick
  • A ticket where lottery numbers are randomly generated by a computer, rather than being selected by the player.
  • Revenue
  • This report defines revenue as money earned before prize money is allocated.
  • Scratchies
  • Lotteries where players scratch away panels to reveal picture combinations. Scratchies are also referred to as instant lotteries.
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    Why buy this report?

    IBISWorld’s Lotteries market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
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    This report on Lotteries:
    • 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 Lotteries 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 Lotteries, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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