Sportsbet Overtakes Tabcorp in Terms of Market Share
Rivalry in the online betting market in Australia has stepped up a notch with the release of a report by Morgan Stanley equity analyst, Nick Markiewicz. Sportsbet has overtaken Tabcorp in terms of market share, making it the largest online bookmaker in Australia.
The survey, which was reported by The Australian, shows that Sportsbet’s market share has grown from 19 percent to 22 percent, overtaking Tabcorp with its steady 21 percent market share, despite Tabcorp’s turnover rising by 12 percent in 2016.
The results are likely to spur on the merger talks between Tabcorp and Tatts, considering their merger has already received approval from both the company’s boards. The merger is currently being considered by the regulators.
According to Markiewicz, British owned bookmakers are in a strong position to continue to challenge the position of Tabcorp and Tatts in the Australian online gambling market.
“Sportsbet and Ladbrokes appear to be the main winners, likely at the expense of Tabcorp and Tatts,” he explained.
On the other hand, Tabcorp holds some advantages over the foreign-owned corporate bookmakers, starting with their ability to continue to offer in-play betting within their retail venues, while online bookmakers have had to cease these services due to the country’s latest ban on in-play betting.
South Australia’s 15 percent point of consumption tax is another challenge that will face corporate bookmakers. On the other hand, Tabcorp is in a strong position with its move to offer higher-margin online products, its capacity for tax reform and its opportunity for significant capital management following its merger.
According to Markiewicz, Sportsbet also outranked Tabcorp in terms of customer satisfaction; however, he noted there was a “yawning gap” between second and third place, underlining the success of Tabcorp’s management.
March 27, 2017