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USA Online Casino gambling thrives

October 01, 2009

As video game companies in the USA struggle, and global players cut console prices to stimulate demand, research by Ernst & Young has stated USA online casino gambling is one part of the market with a bright future.

Its annual report into the betting industry stated the economic downturn was bringing challenges to the sector, but new features in online casino gambling was still bringing in money.

Jim Bowden, senior manager in Ernst & Young UK’s gaming and betting team, stated: “A reduction in consumer confidence and disposable income has resulted in many global markets seeing a decrease in betting revenues. Additionally, the tightening of the credit markets caused the deferral of major projects at destination betting resorts.

owners around the world are studying very closely every aspect of their business models to ensure they are providing customers the services they demand.”

The study showed that online betting has seen robust trading, with many owners in the bingo and lottery markets expanding their online presence.

Mr Bowden added: “Online games provide a form of escapism for people during the difficult times and the potential audience is huge – anyone who has an internet connection. The past year has seen continued growth and new features in this area. Online games are a fun, cost effective alternative to other leisure activities during an economic downturn.”

But while online casino gambling has been the main success story, some casinos have weathered the recession better than others, the report stated.

It stated domestic gambling sites around the world were affected less than tourist gambling spots because people had been cutting down on air travel.

Some owners have also introduced new forms of gambling that have yet to face a recession.

In the UK, the growth of Fixed-Odds Betting Terminals (FOBTs) continues to be a major area of focus for bookmakers. Many bookmakers stated that revenue generated from FOBTs now exceeds traditional over-the-counter gambling.

The bingo industry, like the pub industry, was hit badly by the smoking ban. The report stated that this was a special challenge since owners earn the most lucrative returns from betting machines in the periods between games, when most smokers go outside for a break.

The report stated the industry over the coming months would be a matter of ‘survival of the fittest’, concluding: “Given that many owners in the industry have already taken steps to reduce costs to align themselves to the new regulatory environment, they could be well placed to emerge stronger as the upturn comes, according to the study.”

Good Luck

From the Online Casinos USA team

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