Gambling News
“ Online Casino 888.com
Considers UK Float” by Gavin Haycock and Steve Slater ”
Gambling market seen to be growing to over $10 billion a year.
Main driver seen to be Poker
New estimates foresee the online gambling market will soon reach over
$10 billion a year with Poker driving most of the growth. Currently, sports
betting represents about 45% of the market and other online gambling games
represent 32%, but analysts predict that Poker will outrun both of them
in the next few years. Another game being keenly watched by investors
and analysts who anticipate a similar enormous growth is Internet Bingo
and other skill games.
The growth in the Internet gambling industry has been dramatic, with
industry experts estimating even more phenomenal growth in the future.
A number of factors drive this growth, among which are improved broadband
and cellular technology, general development of internet technology, the
growing popularity of poker, and the ease and convenience of being able
to gamble from your home. Internet gambling also appeals to a wider audience
than traditional gambling venues, and it is attracting younger and more
affluent players, as well as more female players than conventional casinos.
Online gambling is also less intimidating and much less informal than
regular casinos or betting houses.
So it is no surprise then to see that more and more Internet gambling
companies are deciding to list their companies. An example of such a company
is 888.com, which floated this year with a valuation of 830 million pounds
(1.6 billion dollars) and has hired Credit Suisse First Boston to prepare
the floatation. So far the London stick exchange is the most popular center
of choice for listing online gambling companies since London welcomes
the Internet gaming industry, whereas the U.S. has been actively trying
to restrain it. Despite this, the majority of online gamblers are U.S.
citizens.
It also comes as no surprise that there are a great many shareholders
and clients as well as high level institutional investors interested in
online gambling companies. From an investor’s viewpoint, the online
gambling business has many attractive qualities compared to normal businesses;
there are no distribution costs, no logistical problems, and no production,
inventory or storage costs.
Peripheral businesses involved in Internet gambling, such as CryptoLogic,
a software company that develops Internet games, and NETeller, an online
payment processing and transfer company, are also flourishing from the
growth in the Internet gambling industry.
There are many dramatic growth stories which show a healthy future for
the online gambling industry which serious investors are monitoring closely.
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