Aussies Turn to More Online Gambling, Sports Betting

As the 2012 NRL and AFL seasons get ready to kick-off, business information analysts at IBISWorld reveal how much Australians are spending on sports betting - the fastest growing gambling segment.

Australians are among the most prolific gamblers in the world, with IBISWorld forecasting total gambling expenditure will increase 3.3% in 2011-12, reaching a total of $22.5 billion and an average of $1,265 per person.

While it currently only equates to 1.6% ($360.5 million) of total gambling expenditure, IBISWorld General Manager (Australia), Ms Karen Dobie explained that sports betting is gaining popularity and is by far the fastest growing gambling segment, boasting compound annual growth of 14.7% over the past five years.

Australian gambling expenditure in 2011-12

"Sports betting is certainly the industry's star performer, with market shares either stagnating or in decline across all other segments. The only other exception to this decline is gambling in casinos, which has increased to 20% of gambling expenditure over the past three years," said Ms Dobie.

One factor driving growth in sports betting is the increased spending on marketing - particularly during footy season - that has led to a greater awareness about how and where to place a bet. Another is the diversity of bets on offer, whether it be choosing the first team to kick a goal or guessing how many points they may be leading at half time, providing greater opportunities for spending. Sports betting is generally not viewed as a serious form of gambling, therefore more people are getting involved either individually or collectively at key stages of the competition.

"People most likely to engage in sports betting are younger, professionally employed individuals, often single, with significant disposable incomes. Sports betting is most accessible online and given this demographic is particularly comfortable in the online environment, this is another factor driving growth," Ms Dobie added.

While sports betting is certainly on a rapid rise, its contribution to total gambling expenditure is still relatively small - particularly when compared to spending on the pokies, which makes up a significant 60.2% of total spending in the industry.

In terms of where the gambling dollars are coming from, New South Wales makes up the largest proportion of gambling expenditure accounting for 38%, followed by Victoria and Queensland. Poker machines in pubs and clubs account for the highest proportion of gambling expenditure in every state except for Western Australia (where pokies in pubs and clubs are prohibited) and the Northern Territory.

"More than 70% of us have a flutter at least once a year, especially in line with key cultural events such as Anzac Day and the Melbourne Cup," Ms Dobie said. "About 60% of us buy a lottery ticket each year, while 30% play the pokies and 7% of us try our luck with sports betting,"

Besides the growth in popularity of sports betting, IBISWorld has identified other forthcoming trends in the industry: growth in female participation, more price-competitive bookmaking, and increasing competition from illegal online outlets as well as gambling venues in other countries such as Singapore and China.