The Australian betting market has undergone considerable change in the past financial year. The Australian market continues to be dominated by the Totaliser Agency Boards ("TABs") some of which remain state owned and some of which have now been privatised. The TABs account for approximately 70% of the A$20bn+ wagering industry in Australia. The corporate bookmakers have demonstrated a combined compound annual growth rate in turnover of over 28% over the past seven years compared with the growth of the TABs phone and internet operations of just 9.3%. The corporate bookmaking market is dominated by four main businesses, of which Sportingbet is the largest.
In September 2008, New South Wales and Victoria relaxed their restriction on sports betting advertisements with other States following suit shortly thereafter. Sportingbet, as Australia’s largest independent bookmakers, was able to increase its profile in these markets through advertising in press, TV, radio and at sports events. It is anticipated that the internet business will be the prime beneficiary of such advertising. In response to the relaxation in advertising restrictions a number of States sought to impose further gambling taxes and levies on sports and betting revenues. These taxes vary by State and by sport and are charged in some cases on the amount wagered and in other cases on gross margin. The taxes and levies have been implemented by the States but remain subject to challenge by the industry.
