Jun
20th

Online Gambling Affected by Black Friday

Although it was obvious that the events of Black Friday and Blue Monday would affect the online gambling volumes, stake holders in the online gambling industry were not quite sure by how much. However, H2 Gambling Capital, the reputed consulting firm from Manchester, has produced an assessment showing that the situation is even worse than imagined.

The consulting firm has reported that online gambling growth will slow down to 4.4% this year which is the slowest the online gambling industry has experienced since 1998.

At the beginning of this year with nobody predicting Black Friday, H2 Gambling Capital predicted that gross win forecasts for 2011 for online gambling would be €25.00 billion – a growth of 10.2% on the gross win for 2010. However, H2 Gambling Capital has now downgraded the gross win to €23.76 billion which is 4.4% growth.

There were several reasons listed by H1 Gambling Capital for the slowing down in growth of online gambling which include the impact of Black Friday on the online poker market in the United States. The consulting firm reported that Black Friday and subsequent actions occurring in the United States have decimated the scale of the Internet poker industry in that market and that they have calculated the impact to equate to as much as €765 million of lost market value this year with a further €100 million loss next year.

Another reason for the slowing down in growth of online gambling was the impact of the Japanese earthquake on the Japanese Racing Association which is the largest interactive operator in the world. The H2 Gambling Capital has predicted that the Japanese Racing Association’s interactive business will drop approximately 13% year-on-year during 2011.

The firm also reported that the slower-than-expected regulation of online gambling markets and the economic backdrop were other reasons for the decline.

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