Lotteries in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: July 2023
ANZSIC R9202Revenue
$13.5bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
3,500
Businesses
443
Wages
$XXX.Xm
Lotteries in Australia industry analysis
The Lotteries industry has expanded over the past five years, industry revenue is expected to grow at an annualised 7.6% over the five years through 2023-24, to an estimated $13.5 billion. The industry has benefited high levels of government stimulus that boosted spending gambling services unaffected by lockdowns, like lotteries. The development of online selling capacity also accelerated revenue growth, enabling lottery sales to expand to previously untapped markets, especially in the younger demographics. Nonetheless, gambling in Australia is highly saturated. Lottery operators face strong external competition from alternative forms of gambling, especially horse and sports betting and casinos. These trends are expected to limit revenue growth in 2023-24, with growth slowing to an estimated 1.7%. The easing of COVID-19 pandemic restrictions fuelled a jump in competition from pubs, clubs and casinos in particular, which were heavily restricted during periods of prolonged city-wide lockdowns.The industry has become increasingly concentrated over the past decade. In 2017, Tabcorp and Tatts Group merged, which significantly increased market share concentration. Before the merger, the Tatts Group held the rights to or owned the lottery operations of all states and territories in Australia except Western Australia. In 2022, TabCorp completed a demerger of its wagering and gaming division and its lottery and keno division. This development enabled the new entity to focus entirely on the Lotteries industry, driving down costs and fostering profitability expansion through cost savings and greater sales capacity, especially in the online sphere.The industry is forecast to continue growing over the next few years, albeit at a slower rate. Industry revenue is projected to increase at an annualised 2.4% over the five years through 2028-29, to total an estimated $15.2 billion. Lottery operators are likely to benefit from an increase in real household discretionary income over the period. Yet, consumers are forecast to spend more on sports betting services and other online gambling platforms over the next five years, which is likely to constrain industry revenue growth. Nevertheless, lottery-style products that may appeal to younger demographics, like online instant-win lotteries, could provide opportunities for the industry to expand.
Trends and Insights
- Revenue has grown substantially over the past decade, as lottery operators have sold more tickets online. The ability to drive sales through multiple channels has opened up the industry to untapped markets, especially younger consumers.
- Lotto has maintained a dominant share of overall revenue and embraced online distribution. Other forms of gambling in the industry, like keno and scratchies, are less able to undertake this shift.
- The distribution of lottery operators follows the distribution of population. The largest states naturally have the most lottery outlets, as they rely on high volumes of Australian purchasing tickets.
- The Lottery Corporation has amassed a dominant share of lottery licenses, restricting outside competition. The long-dated nature of these licenses protects the market share of the largest operator and prevents outside competitors eating into this dominance.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 7.6 % over the past five years, to reach an estimated $13.5bn in 2023.
Trends and Insights
The Lottery Corporation emerges as the dominant player in the industry
- Mergers and demergers have had significant implications for this industry over the past decade.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
There is fierce competition in a saturated gambling market
- Competition for gambling expenditure from clubs, casinos and other wagering services is projected to remain fierce over the next few years.
Biggest companies in the Lotteries in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Lottery | 9,959.9 | |
Lotterywest | 1,351.0 |
To view the market share and analysis for all 2 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 Lotto , Instant lotteries and Keno. Lotto is the largest segment of the Lotteries in Australia.
Trends and Insights
Frequent use of jackpots fuels greater consumer interest in lotto
- Lotto is the main form of lottery activity in the industry. In traditional lotto, players must select six numbers from one to 45.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Social Clubs in Australia
- Horse and Dog Racing in Australia
- Casinos in Australia
- Horse and Sports Betting in Australia
Complementors
- There are no industries to display.
International industries
- Global Sports Betting & Lotteries
- Lotteries & Native American Casinos in the US
- Lotteries and Bookmaking Operations in New Zealand
- Gambling & Betting Activities in the UK
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
LottoInstant lotteriesGeneral draw lotteriesKenoRafflesCompanies
LotteryLotterywestPurchase this report to view all 2 major companies in this industry.
Related Terms
LOTTERY AGENTREVENUESYNDICATESCRATCHIESIndustry Code
ANZSIC 9202 - Lotteries 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
Revenue has grown substantially over the past decade, as lottery operators have sold more tickets online. The ability to drive sales through multiple channels has opened up t...
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
Lotto has maintained a dominant share of overall revenue and embraced online distribution. Other forms of gambling in the industry, like keno and scratchies, are less able to...
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 distribution of lottery operators follows the distribution of population. The largest states naturally have the most lottery outlets, as they rely on high volumes of Aust...
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
The Lottery Corporation has amassed a dominant share of lottery licenses, restricting outside competition. The long-dated nature of these licenses protects the market share o...
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
Mergers and demergers have heavily affected structure of the industry. Tabcorp acquired Tatts Group, and then underwent a demerger that created the dominant entity in this in...
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 Lottery's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Lotterywest's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Lottery, and factors influencing its performance in the industry
- Description and key data for Lotterywest, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Rising inflation led to a fall in discretionary income since 2021-22. This trend has threatened the industry has many households have opted not to purchase a lottery ticket w...
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
Lottery operations are cheap to run and revenue is high, which heavily structures the cost structure. Profit margins are high and rising, especially as jackpot pools have inc...
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 Lotteries industry in Australia in 2024?
The market size of the Lotteries industry in Australia is $13.5bn in 2024.
How many businesses are there in the Lotteries in Australia industry in 2023?
There are 443 businesses in the Lotteries industry in Australia, which has grown at a CAGR of 2.8 % between 2018 and 2023.
Has the Lotteries industry in Australia grown or declined over the past 5 years?
The market size of the Lotteries industry in Australia has been growing at a CAGR of 7.6 % between 2018 and 2023.
What is the forecast growth of the Lotteries industry in Australia over the next 5 years?
Over the next five years, the Lotteries industry in Australia is expected to grow.
What are the biggest companies in the Lotteries market in Australia?
The biggest companies operating in the Lotteries market in Australia are Lottery and Lotterywest
What does the Lotteries in Australia include?
Lotto and Instant lotteries are part of the Lotteries industry.
Which companies have the highest market share in the Lotteries in Australia?
The company holding the most market share in Australia is Lottery.
How competitive is the Lotteries industry in Australia?
The level of competition is moderate and increasing in the Lotteries industry in Australia.
