H2 Gambling Capital Predicts Slow Growth for the Online Gambling Industry

June 20, 2011 - by mosesbet · Filed Under gambling news Leave a Comment 

H2 Gambling Capital, a company that tracks trends in the online gambling industry, recently released a report indicating that egaming growth is likely to be slow this year. The firm predicts that the growth in the industry could be as low as 4.4%. This will be the slowest growth that the online gaming world would have seen in the past thirteen years – when H2 Gambling Capital started tracking the gambling industry.

After the preliminary results were released, the firm revised the gross win it predicted for the egaming industry for 2011. The company’s initial forecast, which it released at the beginning of the year, suggested that the industry would show a year-on-year growth of 10.2%. However, current reports indicate otherwise. So, instead of having a gross win of € 25 billion, the online gaming world may only show €23.76 billion.

The company, based in Manchester, stated that the key reason for this drop in figures is the Black Friday that hit the online gaming world in April. Another factor that had a strong impact was the earthquake that hit the Japanese Racing Association (JRA), which is currently the biggest interactive operator the world over.

According to H2 Gambling Capital, several aspects of JRA’s business were down after the earthquake, especially its mobile betting, as the networks had been cleared for enabling emergency care. Exacerbating the effect of these two events have been the delays in regulation sanctions, and the current situation of the economy.

H2 Gambling Capital stated that the actions taken by gambling sites and authorities in the wake of Black Friday has brought down the size of the online gaming industry in the US. According to the company, in the aftermath of the event, it estimates the lost market value for this year to be around €756 million. This is likely to permeate into the next year, and cause a loss of approximately €100 million then. The interactive business arm of JRA is expected to be down by an estimated 13% year-on-year in the coming year.

The silver lining to the cloud for the online gaming world is that by excluding the markets in Japan and US, the gross win for the rest of the egaming industry in 2011 can be expected to grow year-on-year by 12%. These predictions take into account cash casinos launches slated to take place in Italy by mid-2011. Another factor that can have a positive impact on the industry is the unregulated gaming activity that may begin in Spain, Belgium and Greece by 2012.

According to H2 Gambling Capital, the possibility of online poker becoming licensed and regulated for players in the US, is quite encouraging. The company stated that though there are indicators that buy-ins have taken place over party lines for the consideration of licensing, it is possible that strongly regulated activity in the US may begin only in the next 3 to 5 years.

 

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