Online Sports Betting - Australia

Revenue in the Online Sports Betting market is projected to reach US$9.76bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.12%, resulting in a projected market volume of US$11.92bn by 2028.
In the Online Sports Betting market, the number of users is expected to amount to 9.3m users by 2028.
User penetration will be 28.1% in 2024 and is expected to hit 33.6% by 2028.
The average revenue per user (ARPU) is expected to amount to US$1.31k.
In global comparison, most revenue will be generated Australia (US$9.76bn in 2024).
With a projected rate of 48.9%, the user penetration in the Online Sports Betting market is highest Canada.

Definition:

The online sports betting market refers to the segment of the online gambling industry that involves placing bets on various sports events over the internet. This includes a wide range of sports, such as football, basketball, baseball, horse racing, tennis, and many others. Online sports betting allows customers to place bets on the outcome of sporting events in real-time, either before or during the event. These bets can be placed through various online platforms, including websites and mobile apps, which are often operated by licensed online sportsbook operators.

Additional Information

Data includes revenue figures in Gross Gambling Revenue (GGR), which is the total amount of bets placed by customers minus the amount paid out in winnings, Users, average revenue per user (ARPU), user penetration rate, and a breakdown of revenue shares of the total betting market. User and revenue figures represent B2C services.

Online sports betting on various sports such as football, basketball, tennis, cricket, golf, etc.
Esports betting on sports simulation games such as FIFA, NBA 2K, and Madden NFL
Proposition betting on specific events or outcomes in a sports game

Offline or land-based sports betting establishments such as sportsbooks and race tracks
Betting on non-sporting events such as politics, entertainment, and reality TV shows
Illegal or unlicensed online sports betting websites or apps.

The Online Sports Betting market in Australia has experienced significant growth in recent years, driven by shifting customer preferences and favorable local circumstances.

Customer preferences: In Australia, there is a strong culture of sports and a high level of enthusiasm for betting on sports events. Australians have a long-standing tradition of participating in sports betting, and the emergence of online platforms has made it even more accessible and convenient for them to engage in this activity. With the rise of smartphones and the increasing availability of mobile betting apps, customers can now place bets on their favorite sports events anytime and anywhere, further fueling the growth of the online sports betting market.

Trends in the market: One of the key trends in the Australian online sports betting market is the increasing popularity of in-play or live betting. This allows customers to place bets on events that are happening in real-time, adding an extra level of excitement and engagement to their betting experience. In addition, the market has seen a rise in the number of betting options available, with customers now able to bet on a wide range of sports, including popular ones like Australian Rules Football, rugby, and cricket, as well as international sports events. Another trend in the market is the growing use of data analytics and technology to enhance the betting experience. Online sports betting platforms are leveraging advanced algorithms and machine learning techniques to analyze vast amounts of data and provide customers with personalized recommendations and insights. This not only helps customers make more informed betting decisions but also enhances their overall experience, leading to increased customer satisfaction and loyalty.

Local special circumstances: Australia has a well-regulated gambling industry, with strict laws and regulations in place to ensure the integrity of the market and protect customers. This provides a level of trust and confidence for customers engaging in online sports betting, which is crucial for the growth of the market. Additionally, the Australian government imposes a tax on the net wagering revenue of online betting operators, which contributes to the funding of various sports and racing events in the country.

Underlying macroeconomic factors: The Australian economy has been relatively stable in recent years, with a strong GDP growth rate and low unemployment. This has contributed to the overall growth of the online sports betting market, as customers have more disposable income to spend on leisure activities like sports betting. Furthermore, Australia has a high internet penetration rate and a tech-savvy population, which has facilitated the adoption of online sports betting platforms. In conclusion, the Online Sports Betting market in Australia is experiencing significant growth due to customer preferences for convenient and accessible betting options, the popularity of in-play betting, the use of data analytics and technology, favorable local circumstances including a well-regulated gambling industry, and underlying macroeconomic factors such as a stable economy and high internet penetration rate.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Gambling Revenue (GGR) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies, and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, the urban population, the usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Digital market, in a PDF format.

Sports betting is a type of gambling that refers to the activity of placing a wager on the outcome of a sporting event. Events on which wagers are made could be anything from more traditional activities like horse or dog racing to sports such as soccer and American football. Bets are typically made through bookmakers, also known as sportsbooks. These operate both as land-based establishments, for example, at casinos or betting shops, and online. The total amount of money wagered by bettors is known as a handle, while the amount of money earned by a sportsbook after paying out the winners is revenue. In 2022, the sports betting and lottery market size worldwide amounted to 235.46 billion U.S. dollars.