Jun 19 2019
Online betting has become increasingly popular in Australia. According to industry research company IBISWorld, online bookmakers are enticing punters with new features, including the opportunity to bet with cryptocurrencies and the ability to bet on the outcome of fantasy sports, novelty events and reality television shows.
Online bookmakers are finding more creative ways to generate demand. A survey conducted by the South Australian Government in 2018 showed that the number of people undertaking traditional forms of gambling in the state has declined since its 2012 survey. A different survey from the Queensland Government Statistician’s Office showed gambling turnover and expenditure in South Australia have both declined from a peak in 2011-12.
Over the same period, online gambling has grown significantly.
- In 2018, 13% of people surveyed by the South Australian Government placed a bet through the internet at least once, compared with just 5% in 2012.
- Nearly one in five of the respondents that had placed a wager on sporting events also bet more than 25 times in the year.
According to IBISWorld, new games and markets are constantly being added to online platforms, and new features, like the ability to link cryptocurrencies and cards to betting accounts, are continuously being introduced. Betting is also no longer just limited to sporting events, with fantasy sports and novelty events becoming increasingly popular with punters.
“Fantasy sports betting is immensely popular in the United States and has caught on in Australia over the past few years. Previously, participants would compile teams in various sports to compete against friends and win prizes. Now, companies have found a way to monetise those games and allow participants to win cash prizes in both daily, weekly and season-long leagues,” said IBISWorld Senior Industry Analyst, Tommy Wu.
“Betting on novelty events, like elections, TV show outcomes, interest rate decisions and weather, has increased alongside the popularity of TV shows like Married at First Sight,” Mr Wu continued.
Betting companies are also launching a range of other innovative features. PlayUp Group has introduced PlayChip, a gaming token/cryptocurrency that can be used across all their platforms for placing wagers, redeeming rewards and trading to other cryptocurrencies. In 2017, PointsBet introduce online spread betting to the Australian market.
“Spread betting differs to traditional line betting in the sense that there is a greater payout the more your bet wins. Conversely, you can also lose more if the margin increases against your bet,” said Mr Wu.
According to IBISWorld, online bookmakers are offering these new products to capture a greater share of gambling expenditure. Punters are also increasingly placing wagers via digital channels and on fixed-odds markets, shifting away from traditional horseracing and tote betting.
“These trends are expected to contribute to growth in the Horse and Sports Betting industry, which is projected to rise by 4.7% in 2018-19, to reach $4.9 billion,” said Mr Wu.
IBISWorld Industry Reports used in this release:
For more information, to obtain industry reports, or arrange an interview with an analyst, please contact:
Strategic Media Advisor – IBISWorld Pty Ltd
Tel: 03 9906 3641
Mobile: 0422 773 995