Australia lotteries hit by sports betting, racing competition

    Australia’s lotteries are likely to perform slightly better over the next five years given higher per capita spending on gambling activities, but sales are likely to still lag those of sports betting and horse racing, according to a study from IBISWorld.Over the past five years, the industry grew at a compound average rate of just 1 percent, hit by increasing popularity of other forms of gambling, it said.“Lottery operators have increased the frequency of lotto draws to increase consumer interest and expenditure,” said IBISWorld industry analyst Spencer Little. However, this strategy has sometimes been to the detriment of other weekly lottery draws. In 2014-15, revenue is estimated to increase by 1.6 percent, to reach $6.7 billion.Although spending is likely to pick up over the next five years, gambling on sports betting and online platforms will outstrip lotteries, it said.Operators are forecast to further consolidate, with the potential implementation of a privatised national lottery system expected to radically alter operating conditions in the industry over the next five years. There may be potential growth for lottery-style products such as online instant-win lotteries, which may appeal to younger demographics, who represent the industry’s most untapped market, it said.