This latest study from KPMG examines the key trends affecting the online gaming industry. The online gaming market is composed of a number of different types of games, each with its own business models and technology. They include: sports betting; online poker: casino games including slot machines and roulette; online bingo; and online lottery.
Selected key trends identified by the report:
Online gaming growth continues worldwide as the potentially richest marketplace remains largely unrealized. Many European countries have been shifting their online gaming regulations to open up markets to non-native competitors. In France, legislators have been discussing a bill that would end the state monopoly on online gaming, allowing privately owned websites to offer wagers on horse racing, soccer and poker. Italy, one of Europe’s largest gaming markets, has also been reforming its gambling laws. Perhaps even more attractive are Asian countries where online gaming is still outlawed, but where traditional gambling is often thought to be part of the culture. China is an exploding market for Internet games; however it does limit land-based casino gambling activities to Macau, and prohibits online gaming altogether. Korea, an enormous market for online multiplayer games such as World of Warcraft, may have online gamblers, however gambling online remains illegal in Korea as well.
Social gaming i.e. games hosted on social networks such as have taken off in the past year, and online gaming companies are closely watching this growth for even more social games such as bingo. According to a study by media analyst Screen Digest, with growing broadband penetration, increase promotional activity, a trend towards regulatory relaxation and the current economic downturn driving demand for in-home entertainment , online bingo has become the fastest growing sector of the online gaming market and offers huge potential for further growth. The Screen Digest study notes that the UK market, estimated to generate over £220m o f revenue in 2008 (by gross win), is the largest, most mature and most competitive online bingo market globally. Other markets ripe for expansion are likely to include Spain and select markets in Eastern Europe, Asia and Latin America.
The full report is available from the KPMG website
Photo from Creative Commons: Flickr: Jeremy Brooks