Trends, insights, and objective analysis on what will drive the online gambling market now and in the future
Currently, the online gambling market is awash with new industry trends and issues: liberalisation, consolidation, B2B/B2G, U.S. market, mobile betting, … to name just a few. But which trends are relevant (and for whom), which ones are just hype, and what are the figures/analyses behind the trends, …?
For the most part, the answers provided to the above questions have been vague and subjective. Therefore, MECN wants to shed some light on the situation with an objective study.
The report analyses some of the most relevant topics in the online gambling market, such as:
- Liberalisation: Effects of market liberalisations, blessing or curse?
- Consolidation, mergers, and acquisitions ahead: Much more than only Party Gaming & Bwin!?!
- B2B and B2G: Real and sustainable growth driver or “last option to grow”?
- Products and channels to come: Mobile, iPad, live betting, online lotteries, instant, MMOGs, which will stay a niche product and which will become relevant?
- U.S., Asia, India: Near-term reality or only wishful thinking, the regions to watch.
- Market players: Future role of state lotteries and incumbents, media companies, local operators.
- The movers and shakers: The fastest growing gambling websites in the past 12 months.
The report also includes unique insights we gathered from our survey of more than 100 market insiders and operators.
2 Liberalisation – blessing or curse?
2.1 Effects of a market liberalisation – why liberalised markets may not be “heaven on earth”
2.2 A market is liberalised and nobody cares – an unlikely scenario?
2.3 Liberalisation will lead to gradual growth (by getting the casual players)
2.4 The future of liberalised markets
3 Consolidation in the online gambling industry – finally gaining strength?
3.1 Consolidations that will be predominate in the near future - not only the operators will be affected
3.2 The hottest guesses for potential mergers and acquisitions in the next 2-3 years
3.3 Factors driving consolidation in the online gambling industry
3.4 Geographical expansion – acquisitions push local business 16 3.5 Acquisitions to extend product portfolio
3.6 Online and offline gambling – a new symbiosis
4 B2B strategies of operators – growth driver or signs of maturing B2C markets?
4.1 Entering the B2B market - motivation and challenges
4.2 Conflict of interest being operator and B2B provider at the same time – key challenge or thing of the past? 21 4.3 Initial successes or first signs of stagnation?
4.4 Key B2B offers of online gambling operators
4.5 B2G deals with state lotteries and public operators – the next frontier?
4.6 Conclusion – better some than none
5 Future of bonuses and rakebacks
5.1 Bonus and loyalty expenses – the increase of costs is gradually slowing
5.2 Overview of different types of bonuses, loyalty programs, and rakebacks
5.3 The effects of the bonus and rakeback competition
5.4 Corrections to end the bonus and rakeback race
Channels and products
6 Overview – the products with the most growth potential
7 New channels – impact of mobile, iPad, social networks, and MMOGs
7.1 Mobile gambling – will the iPhone finally make it happen?
7.2 The iPad – a new boost for live betting
7.3 Social networks and communities – a chance for online gambling?
7.4 MMOGs – new dimension of online gambling or “just” a marketing vehicle?
8 Live betting – growth potential not yet exhausted
8.1 How live betting works 55 8.2 Live betting lets operators become broadcasters
8.3 Live betting on the way to dominate the online sports betting market
8.4 Live betting case studies
9 Online lotteries – a market that was long neglected
9.1 Online lotteries – why neglected for so long?
9.2 Key players and business models in the interactive lottery market
10 Casual gambling – sustainable business or just “getting the fish”?
10.1 Overview – casual gaming and gambling
10.2 Casual gaming and gambling as the “Trojan horses” for casino, poker, and betting?
10.3 Online gambling industry invests in casual gaming and gambling
10.4 Casual gaming/gambling case studies – on the way to becoming a sustainable business
10.5 Online bingo 70 10.6 Online keno 74 10.7 Online instant/scratch games
11 Fantasy sports – potential entry strategy for restrictive markets?
11.1 The fantasy sports players – similar target group as poker and betting
11.2 Business model and market
11.3 Online gambling operators offering fantasy sports
11.4 Potential first step into the U.S. market for online gambling operators
12 Games for women – growth driver or just “nice to have”?
12.2 What distinguishes a specifically “female“ offer?
12.3 Case studies of gambling sites focusing on females
12.4 Some figures raise hopes in the industry
12.5 Conclusion – a long road ahead
13 The movers and shakers
13.1 Who will be the future winners?
13.2 The fastest growing gambling websites of the past 12 months
14 Local market players – do they spell the end of global operators?
14.1 Local operators dominate liberalised online gambling markets
14.2 Prominent examples of successful local market players
15 The future role of state lotteries and other incumbents
15.1 State lotteries in the Internet – they are growing and there is no end in sight
15.2 Blurring the borderline between private and state operators – the markets are merging
15.3 Privatisation – a prerequisite if state operators are to prevail?
15.4 Poker networks of state lotteries and operators
16 The impact of the media industry – partners or competitors?
16.1 Overview of media companies active in online gambling
17 Private online lottery operators – lottery brokers and others
17.1 Online lottery brokers
17.2 Own independent lotteries offered by private operators
17.3 Case study Tipp24 – revenue and stock up 350%, winning business model or exceptional case?
18 Changes for providers of gambling technology and other services
18.1 B2B operators vs. pure technology/service providers – who will win?
18.2 Providing services to state AND private operators – strategic decision or conflict that has become obsolete?
18.3 Online payment methods – a dynamic market environment
19 Growth regions in the near future
19.1 The regions with the biggest growth potential for online gambling
19.2 Determining growth potential via regional search analyses
19.3 The overview – potential growth regions can be found on all continents
20 U.S. market – between liberalisation and the UIGEA
20.1 Developments on the federal level 127 20.2 Developments on the state level
20.3 Conclusion – U.S. market, hype or near-term reality?
20.4 Market entry strategies for the U.S. market
21 Europe – still enough potential for growth
21.1 France – will it be a success?
21.2 Italy – liberalisation and no end in sight
21.3 Spain – stagnation or just waiting for success?
21.4 Germany – potential liberalisation in 2012: lobbyists, on your marks!
21.5 Denmark – paving the way for Scandinavia?
21.6 Switzerland – non-EU state plans partial liberalisation
21.7 Netherlands – hearings are under way
21.8 Others countries to watch out for
22 Asia – everlasting dream or reality soon?
22.1 The Asian market – facts, figures, and reality
22.2 Asian countries to watch
22.3 Payment issues in Asia
22.4 India – real chance or only bluff?
24 List of exhibits
25 About MECN and contact
List of exhibits
Exhibit 1: The drivers most likely to shape the online gambling industry in the next 2-3 years – Results of MECN survey
Exhibit 2: Mergers and acquisitions expected to predominate in the next 2-3 years – Results of MECN survey
Exhibit 3: The hottest guesses for potential mergers and acquisitions in the next 2-3 years – Results of MECN survey
Exhibit 4: Factors driving the trend toward consolidation
Exhibit 5: Online gambling operators’ motivation for entering the B2B market – Results of MECN survey
Exhibit 6: Key challenges B2B strategies must deal with – Results of MECN survey
Exhibit 7: JV of Playtech and William Hill
Exhibit 8: B2B revenues of 888’s Dragonfish – Q1 2008 to Q1 2010
Exhibit 9: Overview about B2B offers of key online gambling operators
Exhibit 10: Relevance and development of customer bonus and loyalty costs at Bwin
Exhibit 11: Relevance and development of customer bonus at Sportingbet
Exhibit 12: Varying objectives and popularity of bonuses
Exhibit 13: Overview of bonus programs of key operators
Exhibit 14: Will the majority of operators increase or decrease their spending and commitment to bonuses and rakebacks – Results of MECN survey
Exhibit 15: Will the majority of operators increase or decrease their spending and commitment to VIP/Loyalty programs – Results of MECN survey
Exhibit 16: Different types of rake methods
Exhibit 17: Options for stopping the rakeback and bonus “race” – Results of MECN survey
Channels and products
Exhibit 18: Growth potential of various online gaming/gambling products – Results of MECN survey
Exhibit 19: Overview of mobile offers (platforms and games) of key online gambling operators
Exhibit 20: Examples of iPhone offers – sites and apps
Exhibit 21: The iPad could finally make iTV a reality
Exhibit 22: Gambling websites on the iPad – first experiences
Exhibit 23: Examples of live betting offers
Exhibit 24: Live streams offered at key online betting operators
Exhibit 25: Average share live betting will contribute to total sports betting turnover of key online operators in 2-3 years – Results of MECN survey
Exhibit 26: Development of live sports betting gross revenue margins – example
Exhibit 27: Development of live sports betting turnover and gross revenues at Bwin – 2007 to 2009
Exhibit 28: Lottery games of Bwin – Balls of Fire
Exhibit 29: Core sectors of the online casual gaming and gambling market
Exhibit 30: Casino/slot games at online bingo sites
Exhibit 31: “Real” gambling offers and links to them on casual gam(bl)ing sites
Exhibit 32: Overview of casual games supplier for major operators
Exhibit 33: Games revenue compared to Bwin’s total revenue - 2007 to 2009
Exhibit 34: Bingo revenue compared to PartyGaming’s total revenue - 2007 to 2009
Exhibit 35: Traffic growth of Gameduell.de - 2009 to 2010
Exhibit 36: Example of live (presenter) bingo
Exhibit 37: Revenue development of Bingo.com
Exhibit 38: Examples of online keno offerings
Exhibit 39: Internet keno sales of Veikkaus and FDJ – 2006 to 2009
Exhibit 40: Internet scratch/instant sales of Veikkaus and FDJ – 2006 to 2009
Exhibit 41: Examples of fantasy sports sites
Exhibit 42: Future relevance of women as target group for the online gambling industry – Results of MECN survey
Exhibit 43: Women poker tournaments
Exhibit 44: Traditional poker marketing targeting males
Exhibit 45: Examples of online gambling sites targeting women
Exhibit 46: Gambling activities by gender – most popular gambling types for women
Exhibit 47: Which market players will be most relevant in the online market - Results of MECN survey
Exhibit 48: Online gambling sites with the highest growth of visitors in the past 12 months (March 2009 to March 2010)
Exhibit 49: Italian online poker market shares - March 2010
Exhibit 50: Top players in the future French online gambling market – Results of MECN survey
Exhibit 51: Future market relevance of state operators/lotteries and incumbents in the online gambling market in the next 2-3 years – Results of MECN survey
Exhibit 52: Interactive/Internet sales in % of total sales – overview of leading state/public lotteries and operators - 2007 to 2009
Exhibit 53: Subscriptions revenue (Internet & mail-in) of U.S. lotteries in 2009
Exhibit 54: The markets of state and private online gambling operators start to merge
Exhibit 55: Different forms of privatisation – a step-by-step process
Exhibit 56: Potential scenarios for poker/bingo networks of state lotteries and operators
Exhibit 57: Examples of gambling offers at media websites
Exhibit 58: Integrated/branded gambling offers of online media sites
Exhibit 59: Online gambling offers of Sega
Exhibit 60: Media companies active in the online gambling market
Exhibit 61: The future market relevance of media companies in the online gambling market in the next 2-3 years – Results of MECN survey
Exhibit 62: The role of the media industry in the online gambling market – Results of MECN survey
Exhibit 63: The Lotter website
Exhibit 64: Website of EuroTelemillions
Exhibit 65: Stock development of Tipp24 to +350% from January 2009 to April 2010
Exhibit 66: International websites of Tipp24
Exhibit 67: Revenue and EBIT development of Tipp24 – Q1 2008 to Q4 2009
Exhibit 68: Who will dominate the B2B market in 2-3 years – Results of MECN survey
Exhibit 69: State lottery technology/service provider buying into online gambling
Exhibit 70: Level of prevalence of various payment methods among online gambling sites
Exhibit 71: Regions with the biggest growth potential for online gambling in the next 2-3 years – Results of MECN survey
Exhibit 72: Regional online search interest in online poker
Exhibit 73: Search analysis – emerging vs. traditional online poker markets
Exhibit 74: Searches with “PokerStars” and “online poker” in comparison (USA)
Exhibit 75: Countries to watch for as potential hotspots of future online gambling
Exhibit 76: The most relevant markets (countries) for online gambling in the next 2-3 years – Results of MECN survey
Exhibit 77: European focus – countries to watch for as potential hotspots of future online gambling
Exhibit 78: Biggest U.S. online gambling lobbyists in 2
Exhibit 79: Development of gross revenues for New Jersey casinos
Exhibit 80: Selected U.S. states and their approaches to online gambling
Exhibit 81: Will the U.S. market be liberalised first on a federal or on a state level? – Results of MECN survey
Exhibit 82: Number of years until we’ll see the first significant liberalisation on the state and/or federal level – Results of MECN survey
Exhibit 83: Most promising U.S. market entry strategies – Results of MECN survey
Exhibit 84: Relevance of the French gambling market for operators - Results of MECN survey
Exhibit 85: Development and market size breakdown of the French interactive/online gambling market - 2006 to 2009
Exhibit 86: Future roles of PMU and FDJ in the online betting market - Results of MECN survey
Exhibit 87: The first French licencees – local operators dominate
Exhibit 88: Development and breakdown of online gambling turnover/sales in Italy – 2008 to 2009
Exhibit 89: Development and breakdown of online gambling turnover/sales in Italy – January to April 2010
Exhibit 90: Analysis of global websites offering Asian language support
Exhibit 91: Localised Asian offers of key online gambling operators
Exhibit 92: Regional revenue split and development of PartyGaming
Exhibit 93: Regional revenue split and development of Playtech
Exhibit 94: Asian countries to watch
Exhibit 95: Key obstacles across the significant markets in Asia
Exhibit 96: Industry sectors of survey participants