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…
Sports betting in Australia is relatively small by dollar terms — about $3.3 billion a year, roughly 2% of the $160.4 billion total punt cited in the article. That means while sports betting gets a lot of attention, it represents only a small slice of overall gambling activity.
The article points out pokies are the 'gambling elephant' — of the total punt mentioned, $113.5 billion (about 71%) was fed into gaming machines outside casinos. Pokies generated far larger turnover and expenditure than sports betting, so changes to pokies policy, usage or regulation are likely to have bigger financial impact on gambling revenues than restrictions on sports-betting advertising.
According to the figures cited, sports betting was the fastest-growing gambling channel in 2009–10: turnover rose 19.6% year‑on‑year and sports betting expenditure (what punters lost) jumped 37% to $303.5 million. That growth shows the channel is expanding rapidly even if it remains a relatively small share of total gambling.
The article argues such advertising crackdowns are unlikely to tame the overall gambling market — they’re likened to 'swatting at a gnat' because pokies account for the lion’s share of gambling spend. In short, advertising limits on sports betting may reduce visibility, but they’re unlikely to materially cut total gambling takings unless pokies and other major channels are also addressed.
Public data can lag: the article references an 821‑page Australian Gambling Statistics report released in December that only covers up to 2009–10. That report was compiled by the Queensland government Statistician for the national Racing and Gaming Ministers' Conference. Data delays mean investors should be cautious and seek the most recent sources when analysing industry trends.
The article notes NSW government revenue from gaming machines and keno was $1.1 billion in 2009–10, with the Sydney casino contributing $91.4 million. For investors, these figures show gambling generates substantial public revenue, which can influence political decisions, regulation and the operating environment for gambling businesses — all factors that affect business performance and valuations.
Yes — state differences are significant. The article highlights adult per‑capita gambling habits of $11,773 in NSW and $9,956 in Victoria, and notes more than half of gaming‑machine turnover was in NSW. These regional differences matter for investors considering exposure to venue‑based gambling or state‑level regulatory risk.
The article mentions Tom Waterhouse (a high‑profile betting operator whose ads sparked debate), James Packer (linked to casino licensing), Andrew Wilkie (a politician who pushed for reform), and governments such as the O'Farrell NSW administration and the federal Julia Gillard government. It argues political self‑interest, industry lobbying and state revenue considerations all shape regulation — factors investors should monitor when assessing risk in gambling‑exposed businesses.
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