Sports betting genie won't return to bottle despite crusade
The reality, though, is that the public campaign and resultant political knee-jerk over Waterhouse and his peers have achieved three-fifths of very little indeed if it's supposed to be curtailing the gambling genie.
On the most recent data, Australians were fluttering $3.3 billion a year on sports betting - barely 2 per cent of the $160.4 billion total punt. (By way of comparison, that total is $3.5 billion more than Canberra expects to collect in personal income tax this year.)
Fiddling about with the annoyance of hearing betting odds during the oranges break is swatting at a gnat on the back of the gambling elephant: pokies.
Of that total flutter, $113.5 billion, 71 per cent, was fed into gaming machines outside the casinos. More than half of that gaming machine turnover was in NSW, a state that managed an astonishing adult per capita gambling habit of $11,773. Victoria was second among the states with $9956 bet per adult.
One of the problems with examining the gambling industry is that the full data is not timely. The most recent available - the 821-page Australian Gambling Statistics - was released in December but only covers up to 2009-10. It is the work of the Queensland government Statistician, at the behest of the national Racing and Gaming Ministers' Conference.
The figures confirm that sports betting is our fastest-growing channel for losing money. Indeed, it was the only form of gambling to record meaningful growth in 2009-10. Sports betting turnover was up 19.6 per cent from the previous year and sports betting expenditure - what the punters lost out of their total flutter - soared 37 per cent to $303.5 million.
Total gambling turnover in 2009-10 fell by 3.1 per cent, with pokies down 2.3 per cent and their expenditure figures both eased 0.5 per cent to $18.46 billion and $10.2 billion respectively.
With sports betting recording such eye-catching growth and gaming machines actually slipping, it's no wonder the pokie overlords - the pubs and clubs industry - joined in the Waterhouse bashing.
Australians don't need Tom Waterhouse to tell them that when they turn 18 the pubs and clubs they enter will have gaming machines waiting for their money. The attempt by Andrew Wilkie to force the government into some reform of the industry effectively came to nothing. Much stronger forces were working to keep politicians in their place - the back pocket.
If your sense of humour is dark enough, it is hilarious that the O'Farrell government in NSW wants to go further than Julia Gillard in cracking down on sports gambling advertising when it has liberalised the takings and opportunities for its supporters in the pubs and clubs, never mind wanting to give James Packer a casino licence without a tender. But self-interest should never be doubted.
NSW government revenue from gaming machines and keno in 2009-10 was $1.1 billion. The Sydney casino contributed $91.4 million. NSW government revenue from sports gambling was too small to get on the chart.
No wonder Tom didn't seem to have any friends. Oh, there have been a couple of football businesses that saw their own payoff being lessened. These businesses - the mobs who run professional sport - are behaving true to form. They very happily took Big Tobacco's money until governments dragged them kicking and screaming off the habit. The welfare of the kiddies has never been their prime concern either.
Michael Pascoe is a BusinessDay contributing editor.
Frequently Asked Questions about this Article…
The article says Tom Waterhouse's TV advertising was only mildly curtailed after a public campaign — a symbolic win for critics but not a major blow to the gambling industry. For investors, it highlights that advertising restrictions may change exposure and sentiment short-term, but they’re unlikely to stop the broader growth of online sports betting by themselves.
According to the article, Australians were wagering about $3.3 billion a year on sports betting, which was barely 2% of a $160.4 billion total punt. That shows sports betting was still a relatively small slice of overall gambling at the time, even as it grew rapidly.
Pokies are the dominant gambling channel: the article reports $113.5 billion (71% of total flutter) went into gaming machines outside casinos. More than half of that turnover occurred in New South Wales, underlining how crucial pokies are to the industry and state revenues.
Yes — sports betting was the fastest-growing gambling channel in 2009–10. The article notes sports betting turnover rose 19.6% year-on-year, and punter losses (expenditure) jumped 37% to $303.5 million, signaling strong momentum in that segment.
The article references an 821‑page Australian Gambling Statistics report released in December that covered data only up to 2009–10. It was prepared by the Queensland government Statistician for the national Racing and Gaming Ministers' Conference, so the data are detailed but not timely.
In 2009–10 NSW government revenue from gaming machines and keno was $1.1 billion, with the Sydney casino contributing $91.4 million. The article says revenue from sports gambling was too small to register on the same chart.
No — the article says Andrew Wilkie’s push for reform effectively came to nothing. Strong industry and political interests (described as ‘the back pocket’) resisted change, so meaningful reform stalled despite public campaigns over advertising and player protection.
The article suggests investors should be aware that pokies remain the core revenue engine and that political and industry self‑interest can blunt reform. While sports betting is growing quickly, broader regulatory change is hard to achieve, so investments exposed to gambling should factor in entrenched industry power, state revenue dependence and evolving consumer trends.
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