Australia Sports Betting Market Size, Share Analysis and Forecast Report (2024-2032)

Australia Sports Betting Market Trends

The shift towards online channels for gambling or obtaining wagering services has emerged as one of the key Australia sports betting market trends. As per the Australian Communications and Media Authority, nearly 11% of the Australian population participated in online gambling between July and December 2021, recording a year-on-year growth of 8%. In June 2021, the number of Australians engaged in online sports betting also increased from 5% in 2020 to 8%. Nearly 16% of Australians who had already switched to digital channels of gambling reported an increase in their frequency of gambling as compared to 2020. Major affiliate marketing sites that promote people’s access to online gambling have gained substantial benefits from this shift by raising their commission rates.

Australia has emerged as a lucrative market for many foreign multinational corporations, such as the Flutter Entertainment PLC (UK), which owns one of Australia’s most popular mobile betting apps, Sportsbet. The soaring appeal for virtual reality casinos is expected to play a dominant role in driving the Australia sports betting market expansion, since it drives user engagement by promising immersive gambling experiences.

Australia Sports Betting Market Growth

The federal government of Australia is introducing stringent regulations to curtail the risk of bankruptcy and insolvency among gamblers in Australia. This involves a ban on using credit cards for making online bets in April 2023. This measure was in line with the findings of the Australian Banking Association, which indicated that 81% of gamblers in Australia preferred some restrictions on the usage of debt instruments for wagering. Such initiatives are expected to favourably shape the Australia sports betting market dynamics by creating a safe environment for people to win money in casinos and online channels.

As per the Australian Gambling Research Centre, a large proportion of Australian men and women participate in gambling, with scratchies and lotteries enjoying significant appeal. Men are more likely to engage in race betting and sports betting than women. Pokie machines and horse racing are other popular forms of gambling men enjoy undertaking.

Australia Sports Betting Market Insights

• An average person from Australia spends nearly $2,500 on gambling annually.
• In 2023, the turnover of a leading Australian betting company Tabcorp reached $4.9 billion.
• Australian sports betting companies take over $50 billion worth of bets annually.

Industry News

Feb 2024

Entain PLC, one of Australia’s largest betting companies, sought commercial television networks for the live forecasting of major sports events such as horse racing, aimed at increasing its audience base and promoting its business of gambling products.

September 2024

The Australian Communications and Media Authority shifted its focus towards blocking consumers’ access to illegal offshore websites for gambling. This measure aims to enhance consumer safety and regulate the online gambling industry.

Australia Sports Betting Market Drivers

The establishment of the NT Racing and Wagering Commission

The government of the Northern Territory of Australia is planning to approve the Racing and Wagering Bill 2024 to establish a national regulatory body for monitoring companies engaged in providing online betting and wagering services. The bill mandates the presence of a physical office in the Australian territory for gambling companies with large fines to prevent the risk of license compliance failure. The introduction of new levies on bookmaker’s profits is expected to strengthen the national regulatory landscape of sports betting in Australia, thereby shaping the Australia sports betting market trends and dynamics.

Rising Appeal of Sports Tournaments

The Australia sports betting market growth can be attributed to the rising popularity of sports events, particularly cricket, rugby, and Australian rules football. Major international championships and tournaments attract significant consumer engagement and viewership, thus prompting sports enthusiasts to place bets to improve their experience. Moreover, increasing partnerships of key players with sports organisations and the rise of promotional campaigns have boosted the appeal of betting culture. As Australia is expected to host major sports events in the coming decades such as the 2026 AFC Women's Asian Cup and the 2028 ICC Men's T20 World Cup, an increasing number of bettors are expected to participate in gambling activities, thereby boosting the Australia sports betting market revenue. The synergy between sports and betting is expected to drive market innovation and expansion over the forecast period.

Opportunities in the Australia Sports Betting Market

Shift towards informed decision making about placing bets

The integration of real-time data analytics tools into fantasy sports is expected to accelerate the Australia sports betting market development. These powerful systems can analyse huge datasets in milliseconds to identify patterns and generate insights, which are later displayed on personal user-friendly dashboards with alerts and live charts. Automated tools can predict player’s performance depending on their past records, current form, and different matchups by utilising artificial intelligence technology. They also provide personalised trade recommendations based on each gambler’s behaviour and preferences. This ensures a relatively safe gambling experience and is expected to enable younger generations to make more informed decisions about their bets.

Market Dynamics

The Australian sports betting market dynamics are evolving with the emergence of new trends. One of the major market drivers is the increase in in-play betting, which enables punters to place bets during live sports events, thereby enhancing user engagement. Another notable trend is the rising appeal of multi-sport and exotic betting options, which cater to diverse interests. The rise of esports betting is also an important trend, which is driving engagement among a younger demography of consumers. Besides, there is a growing shift towards responsible gambling measures, with major companies implementing tools which promote safe betting practices. Lastly, an increasing number of partnerships between sports leagues and betting companies are surging the Australia sports betting market value by integrating betting into the sports experience.

Market Restraints

The Australia sports betting market faces several challenges due to the implantation of strict government regulations which aim to promote responsible gambling practices among consumers. The Interactive Gambling Act (IGA) limits options for online betting for customers, prohibits in-play betting and restricts certain promotions. This is expected to prevent addiction to gambling and ensure a high level of consumer protection, which can hinder the growth potential of the market.

Besides, the introduction of advertising restrictions for online gambling companies during live sports events has adversely impacted their ability to attract new customers. To prevent the exposure of children and other vulnerable groups, the government has also implemented the "whistle-to-whistle" ban, which prevents companies from airing gambling ads during premier sporting events. This has reduced the visibility of betting companies, thereby impacting their marketing efforts.

High taxation rates are also expected to hinder the market growth in different states. For example, Point of Consumption taxes in regions like South Australia and Victoria are expected to raise operating costs for gambling companies, thereby reducing their profit margins.

Moreover, increasing consumer awareness regarding addiction to gambling and the social stigma attached to excessive betting has driven major companies to implement responsible gambling initiatives, which are further expected to restrict market activity. However, given the huge economic contribution of the industry to Australia’s GDP, it is expected to register sustained market growth over the forecast period.

Australia Sports Betting Industry Segmentation

“Australia Sports Betting Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Formula 1
• E-Sports
• Tennis
• Boxing and UFC
• Football
• Horse Racing
• Others

Market Breakup by Device Type

• Mobile
• Desktop
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Sports Betting Market Share

By Type Analysis

Horse Racing accounts for a substantial portion of the market share

As per the Australia sports betting market analysis, 5.9% of all gamblers in Australia use digital platforms for placing bets on horse racing. The Australian Institute of Family Studies suggests that regular gamblers spend nearly 45% of their total wager on sports bets. This encompasses Formula 1, tennis, football, boxing, and UFC, among other sports. Over the forecast period, cricket, as Australia’s summer sport, is expected to attract a large number of wagers, as it is followed by nearly 26% of the audience with a viewership rate of nearly 90%. Nearly 1.5 million Australians play cricket, which amounts to 1 of every 20 people.

By Device Type Analysis

Mobiles are expected to dominate the market share in the forecast period

The proliferation of sports betting mobile applications has made mobile phones the most popular device for gamblers in Australia. This can be attributed to rising smartphone penetration rates and higher levels of internet accessibility. There are over 170 mobile betting apps in Australia, including Ladbrokes, Bluebet, Neds, Betfair, and Bet365, among others. In March 2022, Sportsbook recorded a year-on-year growth of 20% in revenue, which reached £1.29 billion. The company witnessed a 21% increase in its number of users, and its adjusted EBITDA rose by 37% to US$582 million. This is expected to drive the Australia sports betting market development.

Desktops and other modes of gambling are expected to benefit from increased user engagement from the youth and old-aged individuals. This can be attributed to the rising appeal for real-time sports betting platforms in Australia apart from the steady demand for lotteries and scratch tickets among consumers.

Australia Sports Betting Market Regional Insights

Based on region, the market is divided into New South Wales, Victoria, Queensland, Australian Capital Territory, and Western Australia, among others. Over the forecast period, New South Wales dominated the Australia sports betting market share, accounting for nearly 32% of the total share in 2023. The region is projected to grow at a CAGR of 25.3% during the forecast period of 2024-2032.

Most sports betting Australian companies are in the Northern Territory due to its relatively low tax rates and a responsive industrial regulator that promotes growth and innovation. Overall, 2 betting exchanges and 32 sports bookmakers which earn $50 billion annually together are regulated by the state’s racing commission. With an economic size of $32 billion, the state provides relatively more freedom to sports betting companies than other jurisdictions in the country. In exchange, these companies create economic opportunities for the local community by establishing call centres.

Australia Sports Betting Market Regional Analysis

The Australia sports betting market exhibits regional variations. Victoria and New South Wales lead the national industry in terms of revenue and participation due to the presence of a large population size and a strong sporting culture. Queensland is displaying a growing interest, especially in cricket and rugby. The strict regulatory environment of the Australian Capital Territory and Western Australia has also attracted a cautious consumer base. With the emergence of online platforms, the market is expected to register significant growth over the forecast period.

Competitive Landscape

Major market players are focusing on partnering with leading technology solution providers to enhance the user-friendliness of their digital platforms and enable informed decision-making for their customers.

Key Industry Players

Puntaa Pty Ltd. was founded in 2014 and is engaged in providing gambling services to people through its wagering and betting facilities. It also operates digital platforms for expanding access to sports betting services across Australia.

Unibet/Betchoice Corporation Pty Ltd. was founded in 1997 and belongs to the Kindred Group, one of the world's leading digital gambling companies. It provides data-driven insights to people placing bets and provides customised promotions for betting and sports products to its users.

boombet.com.au pty ltd is headquartered in Brighton, Melbourne. It provides in-person opportunities for gambling through its extensive network of casinos and gambling facilities.

PlayUp Interactive Pty Ltd. is a next-generation technology and entertainment company, headquartered in Sydney. It aims to promote rewarding, entertaining, and responsible online gambling behaviour.

Other key players considered in the Australia sports betting market report are WinnersBet Pty Ltd., PuntNow Pty Ltd., and Merlehan Bookmaking Pty Ltd., among others.

Recent Developments

April 2024

Tabcorp established a partnership with OpenBet to integrate a wide range of online services and products into its flagship brand TAB to drive user engagement and market growth. OpenBet’s solutions are also expected to streamline the business processes of Tabcorp to drive operational efficiency.