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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.
Danske Spil Bingo Moves to Microgaming -
The national lottery of Denmark, Danske Spil, is live on the Microgaming Bingo Network. Danske Spil, the Danish national lottery, is live on the Microgaming Bingo Network following a change to its licence conditions.
Quickfire live on Strendus -
Quickfire powered by Microgaming is extending its reach in the LatAm region with the signing of Strendus. Strendus is the online division of Logrand Entertainment Group. The group comprises several companies that operate gaming and entertainment establishments in Mexico, running 14 land-based casinos in total.
Quickfire content live on BetatHome -
Online gaming and sports betting company bet-at-home was founded in 1999. Today the company has 4.8 million registered customers around the world, offering sports betting, casino, live casino, Vegas games, poker and virtual sports.
Microgaming has donated £30,000 between four charities -
Gift of Giving provides Microgamingís customers the opportunity to vote for one of several charities in their region. In lieu of Christmas gifts, £30,000 is split equally between four global regions: Isle of Man, UK and Europe, Africa, and Rest of the World.
Entertainment Betting Odds: 90th Academy Awards -
The Shape of Water leads Sundayís 90th Academy Awards (8 PM ET, ABC) with 13 Oscar nominations, but when it comes to Best Picture, this highly-acclaimed film is a +140 second-favorite behind Three Billboards Outside Ebbing, Missouri at Ė115.
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