Seven days in … wagering – Punters take control as bookies lobby for tax break

In this edition:

• The Point of Consumption tipping point – Does Queensland move first?
• MIXI in control of PointsBet after seven-month fight
• Two more brands launch on Punterstech
• Dabble links up with NBL

Three months ago, professional punter John Walter told The Straight that bookmaking had become a ‘faceless’ game and a battle for marketing prowess as opposed to price.

It was a comment which resonated with punters and rankled bookies. But it struck at the heart of what has become an increasingly corporate game. Punters, often rightly, feel they are the only ones taking risk when they are placing the bet.

But there has been an interesting trend over the last couple of months, both across racing and sports betting. Punters have got the upper hand, particularly in the Saturday racing market, and it has bookies a little worried.

It also has racing bodies a little perplexed. They are finally seeing the end of turnover declines, yet the bookmakers are doing it tougher. Who’d have thought it! More money going back into punters’ hands actually means increased turnover.

It’s not just at the track that the corporates are said to be doing it hard. Last weekend’s footy results, particularly in the NRL, were brutal for the bookies, with one industry insider describing it as the worst weekend in history in terms of sports betting.

This is such a huge time of year for Australia’s wagering industry. Spring racing drives enormous turnover, as does domestic footy finals, while the American powerhouse sports like NFL and NBA have started or are about to start. It is a key period of acquisition.    

Bookies correctly cite rising compliance costs, fees and taxation as the reasons why their business model has become harder and harder.

Much of the wagering sector is in favour of a moderation of Point Of Consumption Tax, with the current racing review in Queensland seen as an opportunity to show that the 20 per cent Queensland went to in 2022 was in error.

A subsequent change of government makes that an easier case to prosecute, but the Crisafulli government is unlikely to be in the mood for a revenue cut.

In an analysis piece, we look at what a future model of POCT and race fields might look like in Queensland.

It was expected that greater tax and regulation would accelerate the convergence of the Australian wagering industries, but this still hasn’t really eventuated.

Sure, betr and BlueBet merged and that entity then secured TopSport, but with MIXI effectively winning the battle for control of PointsBet, there are still plenty of players active in the middle to top end of the market.

MIXI already had a small foothold in Australia via betM, but its 66 per cent of PointsBet puts it in a strong position to make an even bigger mark. Betr still holds a minority stake, but MIXI has made it clear there are no seats for it at the board table and that PointsBet will continue to operate as usual.

Meanwhile, the number of ‘microbookies’ – those set up through third party tech companies – continues to grow, with another two launched on Punterstech this week.

Then we have Dabble, part owned by Tabcorp, but on its on path to wagering domination through a slick marketing approach aimed at those in the 18 to 35 demographic.

To quote Dabble itself, it’s a social entertainment and experience product as opposed to a betting product. It appears to be working for them, levelling up with its “bigger brother” TAB when it comes to digital customers, albeit Dabble has a global footprint.

Its latest move is to partner with the NBL, the Australian basketball league which has grown massively in profile. TAB is the official wagering partner of the NBA, Australia’s biggest sports betting market, and the NFL.     

Enjoy your wagering week!

Regards

Bren O’Brien

Managing Editor and Founder

The Straight