The consulting firm MECN published a new study that analyzes some of the hottest topics in the industry – skill gaming, online bingo, and fantasy sports.
Despite the recent weeks were the toughest ever for private online gambling operators following a rapid succession of events that shocked the industry, some operators had already started to think about alternative revenue sources in case gambling would face tougher restrictions, and previous growth sectors, such as online poker and betting exchanges, would mature.
According to many experts, casual gaming and gambling, which includes skill gaming, online bingo, and fantasy sports, represents such an alternative. Although some of the casual gaming and gambling offers have already been in existence for several years, the industry has only recently begun to focus on them. “It is astonishing at what speed this industry is currently moving,” explains Martin Oelbermann, coauthor of the study. “We can see, for example, on a weekly base high caliber companies and investors, such as media giants Liberty or Burda, as well as Betfair\’s founders getting involved.”
The main reason for the increased interest are the millions of potential casual gamers and gamblers not yet targeted by the industry. As the market for heavy punters and gamblers becomes more and more saturated, the industry now begins to focus on casual gamers and gamblers and especially on women.
Another reason for the growing relevance of the casual sector is that the legislation regarding gambling is getting more and more complex everywhere and forces state lotteries as well as private companies to look for alternative products to their traditional gambling offerings. As Martin Oelbermann adds, “Especially the legally less problematic skill gaming sector, including online versions of various card and board games, must become a consideration in many strategic discussions at state lotteries as one of the key future growth options.”
The study includes the results of a survey MECN conducted among more than 60 industry experts who offered their unique insights and assessments. The experts estimate the current market size for casual gaming and gambling (skill gaming and online bingo) to be about $500 million with 8 million registered players playing for cash. By 2010 the casual gaming and gambling market is expected to grow to $1 billion.
The experts estimate that more than 63% of the casual gamers are women, which is unique in the generally male-dominated gaming and gambling industry. As many as 72% of the experts believe that offering a large variety of games is the most important characteristic of a successful casual gaming site. Europe will be the most important region for future growth, according to 91% of the experts.
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