|Online Gambling Sector Expected to Grow Significantly by 2014|
According to a report released by gaming publishing group iGaming Business, the online casino industry is expected to increase by around 80% for the five year period ending 2014.
The Global Business of Online Casinos report predicted that, by the end of this year, the online market will have a gross gaming yield of $4.7 b (£3b), which is around an 18% rise from the yield taken in 2009. Two years later (end of 2012), the market is expected to yield an increase of 23.4% to $5.8b (£3.72b), and by the end of 2014 another consistent gain of 22.4% to $7.1b (£4.55b) should be realised. This would mean that, from the five since 2009, there would have been around a 79% growth.
An interesting statistics published in this report claims that it costs around $1.5m (£962k) to start up a successful online casino, which has relatively low business costs compared with opening and operating a live casino: around $300m (£192.5m).
The current success of and strong predicted growths for the online casino market is, according to this report, largely due to the great ease with which widespread, diverse audiences can be targeted. This leads to many non-gambling brands creating associations with online gaming sites to take advantage of their advertising space and, therefore, audience. The bad stigma associated with gambling in the past is coming to an end and, with the introduction of such innovations as mobile phone gambling, the reach potential for online casinos is endless.
The report's author, Rachel Church-Sanders, wrote: “Each online casino operator is looking to participate in a sector becoming more socially acceptable, benefiting from a liberalised regulatory structure in some markets, and enjoying very substantial growth across many key demographics including those that have been hard to reach through other types of gaming or betting such as women.”
“Add to that the growth in social networking, mobile apps and microtransactions and multiply that by the growing number of people globally with broadband connections and wireless access, and the future certainty looks rosy for the online casino sector” she added.
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