Still good potential for online gambling's future

[jetset]

EFFECTS OF THE UIGEA

But still abundant potential for online gambling, says consultancy report


The British company Global Betting and Gaming Consultants (GBGC) published an interesting market report this week, examining the impact of the US Unlawful Internet Gambling Enforcement Act. And it concludes that this controversial legislation passed late last year may have had a slightly bigger effect on online gambling than was at first thought.

Observing that the dynamics of the players visiting sites had changed, with the average yield per player dropping in relation with the overall lower number of visitors to gaming sites, the report quotes as an example that although Party Gaming’s player numbers had risen 30 percent between Christmas and the first week of February, revenues had only increased 19 percent in comparison.

GBGC estimates that the online gambling market was worth US$14.9 billion in 2006, slightly down from its forecast US$15.2 billion, while its 2007 forecast remained at US$14.2 billion. Taking a positive look toward the future, the consultancy predicts that the industry could be worth US$ 21.2 billion by 2010 and US $23.9 billion by 2012 depending on the regulatory developments between now and then.

The recent European legal events such as the Placanica ruling and the EFTA court’s decision regarding Norwegian gaming machines, will have had only a mild impact on gambling monpolies in Europe, the report opines. However, added to the infringement procedures launched against many EU states and their monopoly operators, it said there could be more European markets liberalised by the end of the year.

“Already in light of the Placanica decision we understand that Poland will be offering online sports betting licences along the same lines as Italy,” it said.

Future reportage from the consultant could be useful - it plans a fact-finding mission to Asia that will include stops in Macau, Hong Kong and China, with the possible e-gaming licensing regime in Macau of particular interest.