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. This 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. In the lotteries segment, Lotto New Zealand has driven growth with the expansion of its digital channels and revamping its product offering. Industry revenue is expected to increase at an annualised 4.2% over the five years through 2017-18, to $3.6 billion. The continued strong uptake of fixed-odds betting is anticipated to support growth of 2.3%...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
4.2%
Forecast Growth 18-23
Profit
Employment
976
Businesses
687

Industry Threats & Opportunities

  • Fixed-odds horse and sports betting has been the main driver of growth over the past five years
  • Foreign bookmakers have posed strong 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 Investment Chapter

    The Lotteries and Bookmaking Operations industry is characterised by high capital intensity, which has gradually increased over the past five years. For every dollar paid as wages, an estimated $0.33 is spent on capital investment. While there are significant capital outlays associated with lottery and horse and sports gambling operations, low wage costs have also contributed to the industry's high capital intensity. The New Zealand Lotteries Commission operates through a network of retail outlets throughout the country and does not generally directly employ staff outside of its head office operations, instead paying commissions to the various retail outlets for sales of MyLotto products. For...purchase to read more.

    Additional Insights for the Lotteries and Bookmaking Operations Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Lotteries and Bookmaking Operations Industry 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 like totalisator or other betting services. These services may be provided online through the internet.

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

  • Demand Determinants
  • Lotteries
  • Horse racing 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
  • Profit
  • Prize money and dividends
  • Taxes and levies
  • Wages
  • Other
  • 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
    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
    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 offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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
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    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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