Bet365 applies for Australian licence
Denise Coates confirms bet365 in process of applying for a licence in Northern Territory - its first sports betting licence outside the UK.
Bet365 is “in the process” of applying for an Australian licence, its founder and joint chief executive has told eGaming Review, and could see operations begin as soon as the end of this year if successful.
Denise Coates, joint chief executive of bet365 said: “I can confirm that we are in the process of applying for a licence in the Northern Territory of Australia.
“Once we have submitted the application and the regulatory authorities have had the chance to consider it, we will hopefully be in a position to comment further,” she added.
If the Australian regulator approves Bet365 it is thought the company could begin trading as early as November. It would also be its first sports betting licence outside the UK.
The operator employs around 1,400 people in Stoke and also has an office in Gibraltar with more than 100 staff where its casino, poker and bingo operations are licensed. The Darwin-based Australian office would employ a similar number of employees, however it is not yet known who would lead the operation.
The Australian gaming market, including land-based venues, has the world’s highest loss per gambling adult over the age of 17 ahead of Singapore and Ireland, according to H2 Gambling Capital, with close to US$1,300 lost per person in 2010.
The Australian online sports betting market has experienced double digit annual revenue growth since the lifting of interstate advertising restrictions from late 2008. However, the online sector is more restricted only offering sports betting and telephone in-play.
If Bet365’s licence is approved, the egaming market there will become even more competitive with some of the most forward thinking firms already operating and looking to claim more market share through new ventures and acquisitions.
Paddy Power, through its takeover of Sportsbet, controls around 20% of the market, while Sportingbet, despite already accepting a significant amount of Australian customers, is now looking to grow its presence as well as accelerate its exposure to regulated markets through the purchase of Centrebet, the first bookmaker to be licensed in Australia in 1993. Licensed in Tasmania, Betfair also operates in Australia via a joint venture with James Packer’s Publishing and Broadcasting Ltd which owns Melbourne’s Crown Casino.
Australia in numbers
Adult population: 17 million
Home broadband penetration: 31%
Market size: Onshore gross gaming yield (GGY) 2010 “ US$421.2m (39% of total)
Market growth: GGY from regulated market grew by 24% in 2008 and 10% in 2009
Regulated products: Sports betting and horse racing. Online in-play, casino and poker remain unregulated due to ban under Interactive Gambling Act 2001
Main operators: Sportsbet/IAS (Paddy Power), Sportingbet, Centrebet (onshore)
(Source: H2 Gambling Capital)