Bet365 Is Heading To Australia
Bet365 has applied for a gaming license in the Land of Oz, its founder and joint chief executive notified Cassaon-casino earlier today. This internet casino (Bet365) would start operating in Australia hopefully before the end of this year.
Joint chief Executive, Denise Coates of Bet365 had the following to say: “The rumours are true we have applied for a license in Australia’s Northern Territory. Hopefully Australia’s regulatory authorities would approve our application soon, once we’ve received feedback concerning our application further details would be provided,” she added.
If Bet 365’s application for a license is approved by the Australian regulator, this internet casino’s aim is to start trading in November. This would be its very first sports betting license outside the United Kingdom’s borders.
In Stoke this internet casino presently employs approximately1,400 staff. It also has an office with 100 employees based in Gibraltar, where its casino, poker and bingo operations have been licensed. A similar amount of employees would be appointed by its Darwin-based Australian office. At this stage it remains to be seen who’s going to manage Bet365’s office in Australia.
The Australian gaming market, taking into account its revenues from land-based casinos as well internet casinos, over the age of 17 it currently has the globe’s highest loss per gambling adult ahead of Singapore and Ireland. This is according to the latest research done by H2 Gambling Capital in 2010; it indicates that the average adult in Australia wagers more or less loses US$1,300 per person. No wonder Bet365 has decided to venture into Australian waters. One can only hope that this won’t exacerbate problem gambling further in Australia.
The Australian internet sports betting market is booming since interstate advertising restrictions have been lifted in 2008. Since then it experienced double digit profits annually. Nonetheless, the internet gambling arena is a bit more controlled only permitting sports betting and telephone in-play.
Assuming that Bet365’s licence is permitted, the internet casino market in Australia would be even more competitive than it already is. As it stands more and more internet casinos are venturing into different jurisdictions in the hope of claiming a larger market share by means of mergers and acquisitions.
Paddy Power, via its takeover of Sportsbet has a 20% market cap, while Sportingbet, in spite of already accepting a considerable amount of Australian players, is expanding to regulated markets when it bought Centrebet, since 1993 it is the first bookmaker to be licensed in Australia. Betfair has been licensed in Tasmania also operates in Australia through its joint venture with James Packer’s Publishing and Broadcasting Ltd the owner of Melbourne’s Crown Casino.
Mature population: 17 million
Broadband penetration at homes: 31%
Market potential: Onshore gross gaming profits (GGY) 2010 – US$421.2m (39% of total)
Potential market share: GGY from controlled market increased by 24% in 2008 and 10% in 2009
Regulated wagering products: Sports betting and horse racing. Online in-play, casino and poker remain unregulated due to the ban under the Interactive Gambling Act of 2001
Main internet casinos: Sportsbet/IAS (Paddy Power), Sportingbet, Centrebet (onshore)
(Source: H2 Gambling Capital)