Online Gambling Growth Affected by Black Friday and Blue Monday

June 24th, 2011  |  Published in Casino News

It is inevitable that Black Friday and Blue Monday affect the growth of online gambling. However, stake holders are always left wondering by how much. Therefore, the reputed consulting organization, H2 Gambling Capital based out of the Manchester, U.K. recently released an assessment which revealed that online gambling growth will slow to 4.4 percent in 2011. This marks the slowest annual growth of the industry since data tracking began in 1998.

Low Global Growth

In early 2011, H2 Gambling Capital predicted gross win forecasts of 25 billion Euros. This represented a growth of 10.2 percent compared with 2010. However, H2 has since downgraded its estimate to 23.76 billion Euros as a result of Black Friday and preliminary results to date. This equates to the aforementioned 4.4 percent growth.

Reasons for Slow Growth

The firm listed several reasons for the slowing of growth in the online gambling industry. The greatest impact was that of Black Friday on the United States poker market. The H2 press release stated, “Black Friday occurring in the US that have decimated the scale of the Internet poker industry in that market. At this stage we have calculated that the impact will equate to as much as 765 million Euros of lost market value this year and further 100 million Euro loss next year.

Japanese Earthquake and Tsunami

The next most considerable reason was the effect the Japanese earthquake and tsunami had on the Japanese Racing Association, the largest interactive operator in the entire world. H2 indicated that the business decreased by around 13 percent in 2011. Other reasons include the economic backdrop and slow regulation of various online gambling markets.

The Silver Lining

The report further stated that the online gambling expected win excluding the United States and Japan was scheduled to grow by 12 percent in 2011. The primary contributor to this figure was the anticipated launch of online poker cash games and casino gambling in Italy toward the middle of 2011. H2 is expecting sizable growth in the market due to the move toward regulation in other European countries like Greece, Spain and Belgium.

Other than in the United States and Japan, it appears as if online gambling has a bright future. Once the cleanup and rebuilding is complete in Japan and the legalization of online gambling is implemented in the United States, the number will continue to rise.

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