Recession has left many looking at the online gambling industry as a source of alternative income. In a recent report, iGaming Business demonstrated that by the end of 2010 the online casino market will be worth $4.7 billion dollars globally. This is based on gross gaming yield figures. The report also indicated that that by the end of 201 the industry will be worth $5.8 billion dollars, and continue to increase to a market valuation of $7.1 billion dollars gross gaming yield by the end of 2014. What this means is that the online casino gambling industry is set for rapid growth, increasing nearly 79% when compared to 2009 gross gambling yields.
iGaming Business is the key provider of reports of this nature for the online gambling industry. They are seen as the standard of intelligence for growth reports in the online casino industry. Meanwhile, the Global Business of Online Casinos tracks trends and strategies of successful online gambling casino operators providing a step by step look at the history of the industry using statistics on start-ups and established companies who expand.
Insiders in the industry state that on average, it takes $1.5 million dollars in start up costs to get an online casino up and running. However, few employees are needed for online casinos, whereas many more dollars go into employee costs for traditional brick and mortar gambling sites. In fact, average start up for a traditional gambling establishment can exceed $300 million dollars due to the need for funding added operational costs. This means that many online markets are being diversified because of the lower start-up and operational costs which is contributing to the extensive growth in the industry.
Two such enterprises are Virgin Group and Sky in the UK. They entered the online gambling scene by launching their own branded online casinos. This is one way to market and monetize existing online content to create alternative revenue streams. Industry reports support the concept that other companies will be employing similar strategies contributing to similar online revenue models. Another trend for monetizing online gambling websites is to use social networking technology and wireless communications to boost gambling revenues. Everyone is looking for next great app for their phone, or social networking pleasure and many operators are using this as the impetus for their online gambling research and development seeing it as a huge growth opportunity that will continue into 2014.
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