Publishing company iGaming Business has released the results of a survey predicting that the online casino business could grow by almost 80 percent between now and 2014.
The Global Business of Online Casinos report claims that by the end of 2010, the online casino market will be worth $4.7 billion globally in terms of gross gaming yield, and will rise to $5.8 billion by the end of 2012 and to $7.1 billion by the end of 2014 – an increase of 79 percent from 2009.
The report tracks recent trends and strategies of successful online casino operators, and gives a step by step history of the industry and statistics on starts-ups and expanding enterprises.
It reveals that, according to industry insiders, successful online casinos cost an average of $1.5 million in start-up costs but need very few employees compared with their land-based counterparts, which can cost $300 million to set up and operate.
Large non-gambling brands such as media companies looking to diversify into other markets or monetise existing online content are finding the online gambling space increasingly attractive, the report notes.
“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,” says author Rachel Church-Sanders.
“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 certainly looks rosy for the online casino sector.”
Church-Sanders reports that the ndustry consensus is that successful operators will provide a wider variety of games. However, as well as looking for the new next ‘killer app’, operators should not lose sight of the appeal and importance of familiar and easy to learn games such as roulette.
The rise of social networking sites, applications and smart-phones has many operators integrating these new technology developments into marketing strategies to attract and retain new and younger punters.