Tue, Nov 15, 9:10am by Staff Writer
Tabcorp’s hold on the top spot has been loosened by Sportsbet, with a recent Morgan Stanley survey reported by The Australian indicating Sportsbet had grown its market share from 19 per cent to 22 per cent. That allowed it to overtake Tabcorp as the top provider, despite Tabcorp’s online turnover growing 12 per cent in 2016. The global online gambling market by product is segmented into online betting, online casino, and online lottery. Online casinos segment dominated more than half of the market share in 2017, growing at a CAGR of around 9% during the forecast period. Tabcorp’s hold on the top spot has been loosened by Sportsbet, with a recent Morgan Stanley survey reported by The Australian indicating Sportsbet had grown its market share from 19 per cent to 22 per cent. That allowed it to overtake Tabcorp as the top provider, despite Tabcorp’s online turnover growing 12 per cent in 2016.
The two-way battle for supremacy in Australia’s online wagering market is expected to intensify with the likely merger of Tatts and Tabcorp with confirmation that Sportsbet is Australia’s biggest online wagering provider.
Tabcorp’s hold on the top spot has been loosened by Sportsbet, with a recent Morgan Stanley survey reported by The Australian indicating Sportsbet had grown its market share from 19 per cent to 22 per cent.
That allowed it to overtake Tabcorp as the top provider, despite Tabcorp’s online turnover growing 12 per cent in 2016. Tabcorp’s online market share is steady at around 21 per cent.
However a merger with Tatts, which has been approved by both boards and is currently before the regulators, would allow Tabcorp to re-assume top spot in a move likely to embolden Sportsbet to up its game.
Morgan Stanley equity analyst Nick Markiewicz said its survey revealed that the British owned corporate bookmakers were well-placed to continue to challenge the market share of Tatts and Tabcorp, who hold the majority of retail wagering licenses in Australia.
“Sportsbet and Ladbrokes appear to be the main winners, likely at the expense of Tabcorp and Tatts,” Markiewicz said.
But Markiewicz said Tabcorp’s progressive shift to higher-margin online products, scope for tax reform and scope for significant post-merger capital management put it in a good position.
Is The Stock Market Gambling
The other advantage it shares with Tatts is that it can still operate live-in play betting on sport within its retail venues, while the corporate bookmakers have been forced to abandon the live online sports betting products in the wake of increased regulation.
Online Gambling Market
The other significant challenge faced by the corporates is the move by South Australia to put in place a 15% point of consumption tax from July next year.
Should that law survive any court challenges from bookmakers, then there is a possibility other states would look to implement a similar law.
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