The Australian gambling market is currently in flux. With changing attitudes towards gambling and politicians making great efforts to impose limits, the industry is changing rapidly. As such, IBISWorld felt it necessary to update its Clubs in Australia Market Research Report, as clubs are where a large percentage of gambling takes place in the country. Prior to 2006, the clubs market was thriving.
Relaxed smoking laws and a steady increase of poker machines meant that more players were drawn to the venues. After the indoor smoking ban was passed, things started to change. More patrons decided to stay home, as they were no longer able to smoke in entertainment venues across the country – but the effects of the smoking ban were only the beginning.
Many state governments have imposed strict limits on the number of the pokies that are permitted in each club. With fewer games in each venue, clubs are seeing less and less patrons.
Since many clubs depend on their gambling activity for a large portion of their revenue, they have truly started to suffer. Into the future, there are likely to be even more limits imposed, as politicians like Andrew Wilkie and groups like The Greens would like to see betting limits imposed on clubs’ pokies.
“Restrictions on gaming machines initiated by state governments will significantly affect the performance of the industry,” a quote from the report reads. The report also noted that the clubs industry has seen increased competition from other venues that are equipped with pokies.
Hotel and pubs attract patrons for reasons other than gambling, so they seem to have a competitive edge on clubs, which tend to derive a large portion of their revenue from pokies. Due to these circumstances, the report finds that the clubs industry across Australia has only expanded by 2.4% each year for the past five years.
The report also notes that increased restrictions on pokies and gambling activities with further hinder clubs’ profits. From 2013 to 2018, IBISWorld estimates that the clubs industry will see even less growth year-on-year.