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Is Online Poker Saturated
11/14/09 - Interesting reading this week included a piece in Marketing Week which suggested that the online poker market has reached its peak and may be about to decline.
The article quotes a Mintel research report that the sector has stagnated with gross gaming yield valued at GBP 265 million last year. What’s more, this year the market is expected to decline by 7 percent to GBP 247 million.
The downturn follows impressive growth of 72 percent between 2004 and 2007.
Mintel’s study found that almost a third of players have changed their poker habits as a result of the impact of the recession - playing the game less often or for smaller stakes. Average spend per year has fallen by almost 20 percent in the past two years, down from GBP 345 in 2007 to GBP 281 in 2009.
Recent public company results appear to support this suggestion.
Matt King, senior leisure analyst at Mintel, says: “Poker revenues have clearly peaked. The recession is the most obvious culprit, with around a third of poker players now playing less often or for lower stakes because of the economic downturn.
"However, there may be other inherent problems that the industry has to address.”
Among these, Kings points to rakeback promotions, which he claims are minimising margins and “showing the emphasis is on customer numbers, not the profit generated per customer.”
Mintel notes that the online poker sector does have a loyal following, with over half of pokerheads playing once a week or more, while around a third of online players play once a week or more. It also points out that whilst the recession has impacted online poker, its effects have been much less than for the live game played in commercial venues like casinos, clubs and pubs.
Player boredom has played a part in the decline in live poker, suggesting that site refreshment is needed as well as more innovation, the study notes. By contrast, a real strength of the online poker sector is the diversity of sites available, which allows players motivated by various forces to find a site or room that appeals to them.
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Mybet Earnings Struggle -
The statement this week reveals that Mybet continued to be hampered by negative trends from historic quarters, making its original performance estimate "unrealistic".
Tom Horn Awarded Malta Gaming License -
Online gambling software provider Tom Horn Gaming has been awarded a Malta Gaming Authority license that permits the company to host and manage Malta-based gaming operators.
Calvin Ayre invests in new Antigua Business Center -
Ayre joined with government officials this week in a ground-breaking ceremony for a five-story centre on Antigua which will be home for the venture. The "green" building will be solar powered and provide employee-friendly services like catering, a gym and child care.
Attack of the Zombies Slot -
Online gambling games developer Genesis Gaming has unveiled its latest game, with a theme based on a horror story of the undead, exploiting the current trend....and just in time for Halloween.
Why is FullFlush Poker Still Down -
Its now almost a month since Full Flush Poker went offline "for a platform upgrade" and stopped communicating with its reportedly many unpaid and unhappy players. All trace of the operator - and means to communicate with it - have vanished.
Time Running Our For Pennsylvanian online gambling -
Hopes that this week would see the Pennsylvanian Senate voting on an online gambling and DFS legalization bill already passed by the House four months ago dwindled Wednesday when no progress was made and the legislatures season officially closed.
Yggdrasil Gaming Expanding -
The Swedish online gambling games developer Yggdrasil Gaming is to establish a new parent company and expand its Stockholm office as it bolsters its presence in Sweden with a raft of new hires.
FanDuel and DraftKings Settle With NY Attorney General -
Speculation earlier this week that daily fantasy sports market leaders FanDuel and DraftKings were about to agree a settlement on consumer fraud suits prepared by the New York AG was confirmed Tuesday when a $12 million settlement was announced.
Stan james Now Live With EPOS -
The company switched to the Optima server less system across its entire estate in July after previously using Optima EPOS technology. The switch was completed early this (October) month and has already delivered noteworthy savings for the company.
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