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Traditional bookmaking corporates face growing pressure from digital companies
Australia's traditional bookmaking giants Tabcorp and Tatts are under increasing pressure from online and mobile companies like William Hill and recently acquired Tom Waterhouse, Paddy Power's Sportsbet and Centrebet and Betfair as punters turn increasingly toward digital channels to bet on sports events, reports The Age newspaper.
In a long article prompted by next week's major Australian horse race The Melbourne Cup, the newspaper surveys the Australian sports gambling scene, interviewing a wide range of operators, analysts and other experts to conclude that digital betting Downunder is booming, and operators need to get on-board.
"In simple terms, the punters' preference for both channel and product are changing rapidly," the newspaper reports, quoting the analyst firm RBS Morgans as saying:
''In terms of channel-mix shift, retail continues to lose share to digital; while in product, fixed-odds betting is growing as tote betting declines further.”
The article carries infographics showing that annual sports betting turnover of $3.2 billion is the preserve of the online and mobile operators, who command 52 percent marketshare and growing vs. retail and on-course betting's 48 percent.
But on the $20.4 billion p.a. horse racing scene, the retail and on-course operators still rule the roost at 69 percent marketshare, trailed by digital at 31 percent.
Overall marketshare by companies looks like this:
Tabcorp 26 percent
William Hill-Tom Waterhouse 21 percent
Sportsbet 20 percent
Betfair 14 percent
Tatts 6 percent
Other corporates 9 percent
Other TABs 4 percent.
Digital companies see the traditional totes, which still account for $16 billion of the $23 billion wagered in the country every year, as an opportunity to build revenues.
''The opportunity is the TAB market,'' Tom Waterhouse told The Age. ''From an online betting perspective we can offer far better pricing and better technology and ease of use, and a better customer experience, and that is the opportunity.''
Even Tabcorp chief, David Attenborough, sees the writing on the wall, opining to The Age: ''The world is moving very fast and companies that don't move will become digital road kill.''

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