Winning big: Industry revenue jackpots as fixed-odds gambling increases in popularity

The Lotteries and Bookmaking Operations industry has grown consistently over the past five years on the back of the rising popularity of fixed-odds horse and sports betting and growth in real household discretionary income. Revenue growth has come despite declining per capita gambling expenditure, with punters shifting their spending from other forms of gambling, such as poker and gaming machines, to horse and sports betting. Lotto New Zealand has expanded its digital channels and revamped its product offering, which has driven growth in the lotteries segment. Industry revenue is expected to increase at an annualised 4.0% over the five years through 2018-19, to $3.7 billion. The continued strong uptake of fixed-odds betting is anticipated to support growth of 2.8% in the current more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Fixed-odds horse and sports betting has driven revenue growth over the past five years
  • Foreign bookmakers have increased competition for the NZRB, driving down industry profitability
  • Rising popularity of horse and sports betting is expected to support growth over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Lotteries and Bookmaking Operations industry has high market share concentration. The industry's only two players, Lotto New Zealand and New Zealand Racing Board, hold a monopoly over their respective segments and account for 100% of revenue. The industry's concentration is legally set out under the Racing Act 2003 and the Gambling Act 2003, which prevent private corporations from offering bookmaking or lottery services. Market share concentration has remained unchanged over the past five years...purchase to read more.

    Additional Insights for the Lotteries and Bookmaking Operations Industry

    IBISWorld has determined the most important Key Success Factors for the Lotteries and Bookmaking Operations are:

  • Ability to effectively manage risk
  • Development of new products
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Per capita gambling expenditure and Demand from casinos in the Lotteries and Bookmaking Operations industry impact industry performance..

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    What's in this report

    What is the Lotteries and Bookmaking Operations in New Zealand Industry?

    Industry firms primarily operate lotteries or retail lottery products and provide gambling services such as totalisator or other betting services. These services may be provided online through the internet.

    Industry Products
  • Lotteries
  • Fixed odds sports and horserace betting
  • Totalisator sports and horserace betting
  • Industry Activities
  • Lottery operation
  • Lottery agency operation
  • Keno operation
  • Bookmaker operation
  • TAB 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
  • Demand from casinos
  • Number of poker and gaming machines
  • Real household discretionary income

  • Current Performance
  • Industry landscape
  • Horse and sports betting
  • Lotteries
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry landscape
  • Horse and sports betting
  • Lotteries
  • Table: Lotteries and Bookmaking Operations Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Newspaper and Book Retailing in New Zealand
  • Pubs, Bars and Nightclubs in New Zealand
  • Social Clubs in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Television Broadcasting in New Zealand

  • Products & Services
  • Fixed odds sports and horserace betting
  • Lotteries
  • Totalisator sports and horserace betting
  • Chart: Lotteries and Bookmaking Operations Industry Products and Services Segmentation

  • Demand Determinants
  • Lotteries
  • Horseracing and sports betting

  • Major Markets
  • People aged 35 to 54
  • People aged 18 to 34
  • People aged 55 and over
  • People aged 17 and under
  • Chart: Major Market Segmentation for the Lotteries and Bookmaking Operations 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 and Bookmaking Operations

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Lotteries and Bookmaking Operations Industry

  • Industry Globalization
    New Zealand Racing Board, New Zealand Lotteries Commission,
  • Table: New Zealand Racing Board - financial performance
  • Table: New Zealand Lotteries Commission - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Lotteries and Bookmaking Operations 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 and Bookmaking Operations 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
    Fixed Odds
  • A form of betting where the returns on a wager are known at the time of placing the bet.
  • Tab
  • Totalisator Agency Board.
  • Totalisator
  • A system of betting, typically on horseraces, which dispenses and records betting tickets then calculates odds. This system also provides a mechanism for cashing in winning tickets.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Lotteries and Bookmaking Operations in New Zealand 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:
    • 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 Lotteries and Bookmaking Operations in New Zealand:
    • 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 and Bookmaking Operations in New Zealand 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 and Bookmaking Operations in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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