Australian Online Gambling Market Traction Difficulties

Published Saturday, October 15, 2016 -
Australian Online Gambling Market Traction Difficulties

Australia is a land that has endless potential for generating revenue from the gambling public that enjoys the pastime in droves. Although there is great gambling potential in the diverse environment of Australia’s political scene with more than one jurisdiction with different rules there comes the added legislative hurdles associated with progress.

Australia is a tough go for start-ups and almost as difficult for major online offline gambling services providers who feel the profit pinch with high taxes competition and changing laws and requirements. Determining the best marketing strategy or expansion plan for operators has become a nightmare task which costs money and time.

According to the iGaming Business Market Monitor Tabcorp, the national operator is the leader when it comes to online stakes. Paddy Power Betfair's Australian subsidiary Sportsbet is the leading operator among the corporate books, posting a 17% growth in revenues and a 29% rise in stakes in the first half of 2016.

U.K. gambling operator Ladbrokes’ gains in the Australian market were offset by 32% rise in marketing costs and a 49% rise in operating costs. Ladbrokes saw a 42% rise in revenues and a 54% rise in stakes.

William Hill’s decision to merge Sportingbet, Centrebet and Tom Waterhouse into its global brand has not translated into success as yet. Although stakes had grown 13%, revenues fell by 10% and operating profit dropped by 13%. William Hill is also anticipating more legal hurdles which are looming over the online gambling industry in the land Down Under. The government’s recent decision to ban in-play gambling earlier this year, the state governments have started to prohibit click-to-call systems that attempt to circumvent the in-play ban. 

Another U.K. online gambling operator bet365 reported a 10.9% decrease in operating profit in the first half of 2016. The state of South Australia is planning to introduce a point of consumption tax, and other states could follow its lead adding more to the struggle to gain traction in the online gambling market.



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