Online Gambing Market will almost double in the next 4 years

July 30, 2010

iGaming Business recently released the results of a survey conducted by the group which shows some interesting trends and positive predictions that are sure to set the industry abuzz with debate.

According to the report, the online casino industry’s business could grow by 80 percent between 2010 and 2014.  It is purported that by the end of this year the online casino industry will be worth $4.7 billion globally in terms of gross gaming revenues.  Furthermore, this figure will see increases of over 1 billion by the end of 2012, with figures amounting to $7.1 billion come the end of 2014 which is a 79% increase when compared to revenues generated at the end of 2009.

The iGaming report also monitors recent trends and strategies of successful online casino operators, and gives a complete breakdown of the history of the online casino industry and statistics on starts-ups and expanding enterprises within it.  According to industry insiders interviewed in the survey, successful online casinos usually average $1.5million in start-up costs which is way less than their brick and mortar counterparts with huge staffing needs that require up to $300 million to start and operate.

The report also notes that larger non-gambling entities like media companies looking to expand into other markets or monetize existing online space and content are increasingly attracted to the online gambling market.

Rachel Church-Sanders, the author of the report stated that each online casino operator is looking to participate in a sector which is becoming increasingly socially acceptable and are thereby benefiting from liberalized regulatory structures in some markets leading to substantial growth across many key demographics including those that have previously been difficult to reach through other types of gaming or betting such as women.  She added that the growth in social networking, mobile applications and micro transactions, as well as the growing number of people across the globe with access to broadband internet connections and wireless internet are all contributing factors to the positive future outlook for the casino sector.

It is definitely true that many casino operators are already integrating social networking sites and smart-phone applications into their marketing strategies to attract and retain new and younger players, however the success of these strategies is still to be proven.

While there are naysayers who will definitely disagree with the findings of this survey citing increased restrictions and regulations by governments to crack down on online gambling as well as economic recession and increased competition in the market as causes for concern and projections of lower profit figures, Church-Sanders insists that the industry consensus is that successful operators will continue to provide a wider variety of games and be successful.

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Soon a casino at the V&A Waterfront in Cape Town?

July 21, 2010

Sun International recently announced that it would challenge the Western Cape Gambling and Betting Board’s decision to allow one of the province’s existing four casinos to move into the Cape Town Metropole.

The move comes in a bid to halt the stiff competition that the group’s GrandWest Casino which is doing a thriving trade thanks to a 10 year exclusivity agreement which has recently come to an end.  According to a Sun International media release, the group has found grounds to have the decision reconsidered and will be making representations through the public process.

Co-owner’s of GrandWest through their 29.24% share in SunWest, Grand Parade Investments (GPI), also released a statement that they would challenge the decision. GPI chairman Hassen Adams commented that the group would “engage the board on this decision, but we will not fight them on every issue”.

According to the gambling and betting board, the second casino will focus on niche high roller and tourist markets and will be located in an area that is untapped by GrandWest, which the board believes should not have a significant impact on the Grand West’s revenues.  One of the possible locations for the casino is rumoured to be the V&A Waterfront.

Sun International and GPI both disagree for obvious reasons.  The initial R1bn investment that it took to create Grand West a decade ago ensured that the casino was a major attraction and the only one of its kind in the city and having a competitor on its doorstep could definitely change things for their lucrative property. So lucrative in fact that in the year to end-June 2009, it churned out R1,642bn turnover before interest, taxation, depreciation and amortisation of R675m, making the property the largest contributor within Sun International’s portfolio.

On the other side of the coin, Sun International’s rivals are likely to welcome the decision and see it as a gateway to their own ventures into the province. In fact, late last year, the Gold Reef Casino group suggested to the Western Cape’s finance MEC Alan Winde that the issue of exclusive casino licences in the Cape Town metropole be reviewed.  Gold Reef Casino group’s CEO Steven Joffe reportedly said at the time that he was eager to explore the possibility of moving the group’s Mykonos Casino which is situated in the Langebaan area closer to the city center.

To date, the gambling board has provided few details regarding the decision to end the exclusivity agreement with Sun International conclusively.  It is reported that it is yet unknown even to those in the casino sector where the second casino will be located as well as what conditions will be attached to the license.  It is certain that these factors will determine whether or not Sun International will step in to bid for the second license.

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Bwin’s World Cup landslide profits

July 15, 2010

The 2010 Fifa World Cup held in South Africa recently, resulted in a record turnover volume compared to previous tournaments for publicly listed gaming giant Bwin who saw over 30 million bets closed and 900,000 active punters during the event, of which 213,000 were first time customers.

In comparison to other major football tournaments like EURO 2008, the sportsbook enjoyed a gross gaming revenue increase of just under 40% with an average income of just over 1.1 million Euros per day.  These figures are double those generated during the 2006 Fifa World Cup.

Games with the largest number of wagers made included the Spain vs. Germany semi-final, the Netherlands vs. Spain final and finally the Uruguay vs Netherlands semi-final and the most popular wager was a three-way bet (1-X-2) in the 16 group stage on the Netherlands vs. Slovakia match.

Bwin is definitely a major contendor in the gaming industry and currently boasts-over 20 million registered players in more than 25 core markets on a number of platforms including casino, sportsbook, poker room, soft and skill games as well as video and audio streams of top sporting events.  With this kind of expertise as well as calculated business ventures such as it’s successful and well timed launch into France as the only international online gaming provider to enter the market with both a sports betting and poker license in June of this year, it’s not difficult to see why Bwin has enjoyed such enormous growth and success.  Investors must be smiling!

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PartyGaming Growth Positive

July 9, 2010

Earlier this week online gambling giant PartyGaming announced that its second quarter revenue is expected to see an increase of up to 28%. This growth is largely due to the company’s recent acquisition of both Cashcade (a gambling software developer and marketing organisation) and the World Poker Tour as well as solid growth in the group’s online casino operation.

Despite growth, PartyGaming mentioned that revenue had been impacted by the results of the World Cup and subsequent favourable impact on sports betting margins, which lead to a decline of between 8% and 9% of poker players during the tournament. However, once the World Cup reaches its conclusion, the group looks forward to increased numbers and profits.

Online gambling is one of the top ten indicators of economic recovery and positive growth in this sector shows that the world may just be heading towards the end of the most recent recession which is great news for everyone.

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World Cup 2010 Betting Tips

July 2, 2010

On the 11th of June the FIFA World Cup 2010 tournament kicked off in our back yard and has been the centre of attention not only for South Africans but for the world of sports. Home grown Bafana Bafana did our country proud despite not advancing to the next stage and there have been many upsets (like England being crushed by Germany 4-1) and in the last weeks now turn our attention to the final games and who will ultimately take home the glory and the cup and many are placing their bets on their favourites.

If you’ve never placed a sports bet before it may seem intimidating due to the sheer number of betting options available but it’s really quite simple. While some people don’t really care about losing their wagers too much and just “Go with their gut” which is great and can be fun, we at Amuse.co.za prefer to take a bit more of a strategic approach and calculated risk mixed in with that “gut feeling”.

Whatever angle you decide to take, our team has put together a few pointers to help you get things right:

  • Set aside a “betting budget” and stick to it… don’t get caught up the dream and keep going when you’ve depleted that fund.
  • Remember history: only 7 countries have ever won the World Cup, only 2 countries have ever retained it: Italy and Brazil and no team has retained it since 1962 and finally, only Brazil has ever won a World Cup outside their own continent. That said a “Dark horse” almost never wins.
  • Do your homework: find out as much as you can about the various teams and their players, make sure you keep track of which players they will be fielding and who is out due to yellow and red cards. Looking at previous games and their scores will help you to determine their chances. The more you know the more objective you can be.
  • Start out slowly: If you’ve never placed a bet before, start with a single bet because a small profit is better than any loss. Treat your first bet as a learning experience, learn how bets and odds work and enjoy it no matter what.
  • The earlier you bet the better odds you get (like betting on the outright winner now). Odds change regularly and the closer one comes to the match the worse the odds get. For example, in the last 48 hours major sportsbooks have clipped Brazil’s odds ahead of their highly anticipated World Cup Quarter Final match up against the Netherlands, making Brazil the firm favourites at 1.9 while the Netherlands odds trade at 4.5.
  • Long shots payout highly for a reason: They are long shots and don’t often win…not to say that they don’t ever win, but more often than not they don’t.
  • You can cover both the favourites Brazil and Spain and minimise your losses when you bet online with the free bet feature offered by some books. This enables you to place an initial bet on Brazil and then a free bet on Spain.
  • Beware of “hot tips”, especially if you have to pay for them. This is a time for fraudsters and cons, so never pay for advice.

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