Per Capita Gambling Expenditure

IBISWorld forecasts per capita gambling expenditure to rise by 0.9% in 2023-24 to total $591.28. Gambling expenditure increased sharply in the previous year due to the easing of COVID-19 pandemic restrictions in 2021-22. Casinos and other licenced gambling venues were required to temporarily close during lockdowns in 2021-22, mainly reducing casino and gaming machine gambling expenditure. As restrictions eased, revenue shot back up quite quickly, which left limited growth for the current year as per capita gambling levels returned to pre-pandemic levels. The persistence of high inflation has weighed on real household discretionary incomes in New Zealand, which slowed growth in 2023-24 despite rising uptake of online wagering products.

Per capita gambling expenditure has been highly volatile over the past five years. Gambling in New Zealand falls into four main categories: NZ Racing Board (TAB), lotteries, gaming machines and casinos. Over the past five years, per capita expenditure on lotteries has increased while casino expenditure has declined. Gaming and TAB expenditures have remained relatively stable. COVID-19 pandemic lockdowns have particularly affected gambling venues that rely on foot traffic, such as casinos and TABs. Expenditure on lotteries can be volatile, with large jackpots often enticing a higher proportion of the population to participate. Similarly, annual expenditures at casinos can vary. National initiatives to wind back the number of non-casino poker and gaming machines reduced gambling expenditure at casinos prior to the COVID-19 pandemic. Conversely, the growing popularity of online wagering products has juiced per capita gambling, as more and more New Zealanders are opting to bet with their phones rather than attend a TAB. Smartphone betting has had a mixed impact on the growth of per capita gambling expenditure. These apps undoubtedly contribute to higher gambling expenditure, allowing punters to place more wagers more often. However, only the NZ TAB app is included in this driver, which means the rising uptake of smartphone betting may also weigh on this driver.