Horse and Sports Betting in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC R9209Revenue
$6.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
6,415
Businesses
835
Wages
$XXX.Xm
Horse and Sports Betting in Australia industry analysis
The Horse and Sport Betting industry has undergone significant change over the past decade, as online and mobile betting websites have gained a greater foothold in the market, eroding the traditional dominance of Tabcorp. Punters are increasingly choosing to bet online, rather than through retail outlets. Revenue is expected to grow at an annualised 3.7% to $6.4 billion over the five years through 2023-24. This result includes an expected increase of 4.2% in 2023-24, as in-person gambling venues continue to recover from declines brough on by the COVID-19 pandemic. A sharp recovery in spectator sport participation and horseracing attendances is also likely to boost revenue. These trends are likely to offset the ongoing effect of cost of living pressures on gambling expenditure in Australia, which is weighing on the performance on bookmakers in all segments of the industry. Betting on sporting events is the industry's fastest growing segment primarily because of a strong growth in wagers placed through digital channels and fixed-odds betting. This segment has expanded to the detriment of on-course totalisators at horseraces. Consolidation has also occurred because of frequent acquisitions, with several larger companies increasing their market share by acquiring smaller betting firms. For example, the parent company of Ladbrokes acquired Neds in 2018, while the Sportsbet and BetEasy brands were combined following the merger of their overseas parent companies, Flutter Entertainment and the Stars Group. These trends have helped propel Ladbrokes and Sportsbet to market leaders in online wagering, and contributed to falling enterprise and establishment numbers over the past five years.Industry revenue is projected to continue growing over the next five years, albeit at a slower rate. A projected increase in real household discretionary income and the continued growth of online wagering will drive industry-wide expansion. Yet, the growth of online wagering is likely to slow, as the over saturated market leads to consolidation and smaller operators leave the industry. These trends, along with a possible tightening of regulatory conditions, are forecast to weigh on profit margins over the coming years. Overall, industry revenue is forecast to rise at an annualised 1.0% over the five years through 2028-29, to $6.7 billion.
Trends and Insights
- The pandemic accelerated consumer uptake of online wagering, which has constrained retail outlets. Extended lockdowns led many punters in Australia to shift from betting in person to using mobile betting apps.
- As punters shift online, the distribution of product segments was sharply reconfigured. Instead of betting on sporting matches at an in-person venue, many punters are increasingly using online platforms to place bets on sporting events.
- The size of the population typically determines the size of the gambling market. Given most of Australia’s population is on the eastern seaboard, it naturally follows that these states account for the largest share of establishments.
- Competition is much higher in online wagering, because barriers to entry are lower. Retail wagering is often defined by regional monopolies and exclusive licensing, which is a legacy of state-owned totalisator agencies.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 3.7 % over the past five years, to reach an estimated $6.4bn in 2023.
Trends and Insights
The COVID-19 outbreak turbocharged the burgeoning popularity of online wagering
- Wagering in Australia has transformed significantly over the past decade, driven by an influx of online wagering platforms that have reshaped the way Australians bet on sport, while also growing the size of the industry considerably.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Punters will continue to move online, but an oversaturated market will result in consolidation
- The long running trend of punters moving online is on track to continue over the next few years, making it harder for retail outlets and on-course bookies to survive. Nevertheless, the shift online will slow, limiting growth prospects in the highly competitive online wagering segment.
Biggest companies in the Horse and Sports Betting in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Tabcorp | 2,640.0 | |
Paddy Power Australia | 2,228.9 | |
Entain Group | 894.0 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Online racing wagering, Retail racing wagering and Online sport wagering. Online racing wagering is the largest segment of the Horse and Sports Betting in Australia.
Trends and Insights
Smartphones are shifting punters to online racing betting
- Wagers placed on thoroughbred, harness and greyhound racing through online betting platforms represents the industry's largest segment.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Lotteries in Australia
- Casinos in Australia
Complementors
- Social Clubs in Australia
- Horse and Dog Racing in Australia
International industries
- Global Casinos & Online Gambling
- Global Sports Betting & Lotteries
- Lotteries & Native American Casinos in the US
- Gambling in Canada
- Lotteries and Bookmaking Operations in New Zealand
Table of Contents
About this industry
Industry definition
Industry operators provide gambling services, including totalisator and betting services. Gamblers generally place wagers on horseraces and sporting matches. The industry includes online gambling services but excludes casinos and lottery operations.
What's included in this industry?
Online racing wageringRetail racing wageringOnline sport wageringRetail sport wageringCompanies
TabcorpPaddy Power AustraliaEntain GroupPurchase this report to view all 5 major companies in this industry.
Related Terms
PARIMUTUEL BETTINGWAGERINGTOTALISATOR AGENCY BOARD (TAB)TOTALISATORIndustry Code
ANZSIC 9209 - Horse and Sports Betting in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The pandemic accelerated consumer uptake of online wagering, which has constrained retail outlets. Extended lockdowns led many punters in Australia to shift from betting in p...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
As punters shift online, the distribution of product segments was sharply reconfigured. Instead of betting on sporting matches at an in-person venue, many punters are increas...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The size of the population typically determines the size of the gambling market. Given most of Australia’s population is on the eastern seaboard, it naturally follows that th...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition is much higher in online wagering, because barriers to entry are lower. Retail wagering is often defined by regional monopolies and exclusive licensing, which is ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The rise of online bookies has eroded Tabcorp and RWWA’s monopoly position as a retail wagering provider. The online segment is far more competitive, which limits the market ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Tabcorp's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Paddy Power Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Entain Group's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Tabcorp, and factors influencing its performance in the industry
- Description and key data for Paddy Power Australia, and factors influencing its performance in the industry
- Description and key data for Entain Group, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Per capita gambling expenditure is on the rise, fuelling higher wagering yields. A rise in gambling expenditure in 2023-24 is set to drive a moderate growth in revenue, both ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins have stagnated because of high competition. The rise of online bookmakers have strengthened industry-wide profit margins over the long-term, but more recently ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Horse and Sports Betting industry in Australia in 2024?
The market size of the Horse and Sports Betting industry in Australia is $6.4bn in 2024.
How many businesses are there in the Horse and Sports Betting in Australia industry in 2023?
There are 835 businesses in the Horse and Sports Betting industry in Australia, which has declined at a CAGR of 1.7 % between 2018 and 2023.
Has the Horse and Sports Betting industry in Australia grown or declined over the past 5 years?
The market size of the Horse and Sports Betting industry in Australia has been growing at a CAGR of 3.7 % between 2018 and 2023.
What is the forecast growth of the Horse and Sports Betting industry in Australia over the next 5 years?
Over the next five years, the Horse and Sports Betting industry in Australia is expected to grow.
What are the biggest companies in the Horse and Sports Betting market in Australia?
The biggest companies operating in the Horse and Sports Betting market in Australia are Tabcorp, Paddy Power Australia and Entain Group
What does the Horse and Sports Betting in Australia include?
Online racing wagering and Retail racing wagering are part of the Horse and Sports Betting industry.
Which companies have the highest market share in the Horse and Sports Betting in Australia?
The company holding the most market share in Australia is Tabcorp.
How competitive is the Horse and Sports Betting industry in Australia?
The level of competition is high and increasing in the Horse and Sports Betting industry in Australia.
