Australian Casino Industry

Industry Analysis

Industry Overview

The casinos industry cover a range of gambling services like table wagering games and electronic

gaming machines likewise services associated. 1In 2015 there are 13 casinos distributed in the main

cities around Australia.

The casinos industry is worth $ 5.7 billion in revenues in Australia in 2015-16 and has been growing

at an annual growth rate of 3%. The growth in discretionary income has resulted in significant

increase in per capita increase of gambling expenditure which has contributed to a 1.3% of revenue

rise in 2015-16. Profit is estimated to account for 16% of industry revenue in 2015-16 though the

profit margins have fallen over the last five years.

The industry is mature in Australia

There are many social programs to

counteract gambling addiction through use of gambling tax.

 International tourism represents more than 25% of market share and the patron in rise for

the period 2015-16. Casinos are investing in infrastructure and products to attract VIP guest,

also overseas spend more money in other activities such as foods, beverages and

accommodation than local customers.

 Corporate Social Responsibility, part of SCR most of casinos developed social activities and

ensuring their practices do not affect communities adversely. Most casinos run corporate

social responsibility programs and publish reports highlighting their contributions to society.

Technological factors

 Internet connections, casinos in Australia are investing significant amounts of funds in

technological developments. They are working on creating more users friendly, consumer

driven websites and mobile applications in order to ensure consistent and stable delivery of

services to customers. They are using online gambling technology to manage their data and

information more efficiently with the aim to understand their customers better as well

Legal factors

 3Gambling taxes and levies represent a significant part of the costs structure in the industry,

gaming taxes depending of the state or territory, but generally only one license is allocated

per region. Gambling taxes and levies depend on the amounts wagered. In the last five years

the taxes and levies have remained constant. 4Australia and New Zealand are one of the

most regulated and tightly controlled in the world and they are leaders in the industry.

PORTER Five Forces Analysis

Porter five forces analysis is a framework to analyse the level of competition within an industry and

business strategy development. It draws upon industrial organization (IO) economics to derive five

forces that determine the competitive intensity and therefore attractiveness of an Industry.

The industry is concentrated in two mainly players, they share 88% of the market, it make rivalry

interfirm high. The barriers to entry are high due to the level of capital investment required to build

and refurbished casinos, and the high level of regulations by the