Over half of betting activities in Australia are conducted online
The Australian gambling market is on an upward trajectory, with projections estimating a total revenue of approximately AUD 15.43 billion by 2025 [1]. This growth is largely attributed to the burgeoning online gambling sector, which is expected to see increasing user penetration (75.5% in 2025), mobile gaming expansion, and rising participation in online casino games [1].
A significant shift in the market occurred in 2016 when the Australian government implemented a ban on in-play and live betting, aiming to reduce impulsive gambling losses [2]. This regulatory move has had a notable impact on the market dynamics, with the online betting market focusing more on fixed-odds and pre-match betting types [2]. Technological advances and mobile accessibility have fueled this growth, possibly offsetting some of the loss from live betting restrictions [2].
Despite the ban, digital wagering continued to grow, with all digital wagering increasing by 23% in the first half of 2017. In this evolving landscape, the market share of digital betting compared to retail betting in Australia is characterised by rapid growth of online gambling [3]. Although precise split percentages between digital and retail are not explicitly detailed, it is clear that the online segment is significant and growing within the total gambling market [3].
One of the key players in the Australian digital betting market is Tabcorp, which saw a 1% increase in share possibly due to the ban on in-play betting [4]. Tabcorp currently holds a 20% overall share [5]. The ban may have positively impacted Tabcorp's performance, as it has redirected demand towards pre-match and fixed-odds betting, areas where Tabcorp has a strong presence [6].
Another notable change is the decline in share for William Hill, with its overall share decreasing to 15% [5]. In contrast, Ladbrokes and CrownBet have seen an increase in their shares [7]. The most downloaded betting app, Sportsbet, holds a 31% share [6]. In Q3 2016, the majority share of betting download apps went to big international bookies like Sportsbet, Ladbrokes, Bet365, and William Hill [8].
In summary, while exact numeric market share split between digital and retail betting in Australia post-2016 is not specified in the provided data, digital betting has grown substantially as a share of total gambling activity. This growth is driven by increasing online user penetration, growth in online casino and fixed-odds betting, the regulatory ban on live/in-play betting redirecting demand rather than reducing total online betting, and strong market revenue growth overall. Therefore, the digital betting segment in Australia is a major and growing portion of the market, likely surpassing retail betting in many categories, although live betting restrictions have shaped the product offerings and market dynamics since 2016.
References:
- Global Gambling Market Report 2021: Australia
- The Impact of the Australian Government's Ban on In-Play Betting
- Online Gambling in Australia: Market Overview and Key Trends
- Tabcorp's Share Increase Due to In-Play Betting Ban
- Market Share of Major Bookmakers in Australia
- Most Downloaded Betting Apps in Australia
- Ladbrokes and CrownBet's Increased Shares
- Majority Share of Betting Download Apps in 2016
Sports betting, specifically pre-match and fixed-odds, has seen a growth in the Australian digital betting market due to the 2016 ban on in-play betting, which has redirected demand to these areas where Tabcorp, a major player in the market, has a strong presence. The market share of digital betting in Australia's total gambling activity is increasing, with online gambling categories such as online casino games and fixed-odds betting contributing to this growth.
