Although there was a drop in phone and on-course betting, Australian wagering and gaming company Tabcorp Holdings logged an 18 per cent hike in its online betting revenue in the past year.

According to Tabcorp's first-quarter report for 2011 released on Wednesday, it earned $508 million from bets placed online, up from $424 million 12 months ago.

The company attributed the rise in revenue to the growing popularity of online betting, which more than made up for the 5.4 per cent decline in phone betting, which went down to $203 million from $215 million. On-course betting also dropped by 2 per cent to $184 million from $187.7 million for the same period.

Tabcorp's overall revenue rose 2.7 per cent to $759.4 million.

What helped boost Tabcorp's revenue were a 6.9 per cent hike in Keno revenue, which reached $45.8 million, and a 4.7 per cent growth in the income of Tabcorp's media and international division. That division includes the Sky Racing business.

Tabcorp's wagering division also registered $394.1 million revenue due to the growth of fixed-odds racing and the launch of animated racing game, Trackside, in New South Wales.

"The continued revenue growth in Tabcorp's four divisions demonstrates that the investments to grow the business in each of its respective markets are being well executed," Chief Executive Officer David Attenborough said.

The continued popularity of betting could be linked to Australians' love for games, both the sports variety and video games, as well as their penchant for taking some risks in life.

A report released Wednesday by the Interactive Games & Entertainment Australia found that 92 per cent of Aussie households enjoy video games, parents and children alike.

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