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US Ad Agencys Hoping For Internet Gambling Boom

Monday October 29,2012 : US ADVERT AGENCIES HOPE FOR AN INTERNET GAMBLING BONANZA
 
Around $3.5 billion to $4 billion could be spent over the next few years, says internet gambling consultant
 
Recent moves towards legalised online poker in the United States could provide an advertising bonanza to US media, the marketing publication Advertising Age reported over the weekend.
 
Heralding the potential rise in marketing activity, the publication opines that it could be the next boom for the advertising industry, quoting numbers from the respected online gambling consultancy H2 Gambling Capital, whose Simon Holliday says that around $3.5 to $4 billion could be invested in marketing over the next five years - more than General Motors spent in U.S. advertising in 2011.
 
And by 2017 the US internet poker business could be generating more advertising than the insurance sector.
 
Nevada is likely to be the first to go online legally, Advertising Age notes, but at least ten other states have online ambitions.
 
Holliday estimates the gross value of the online-gambling market to be $1 billion in 2014, reaching over $13 billion over a decade.
 
"Driving players to their sites is the biggest single cost of these companies," he told the publication. "It is probable that 25 to 30 percent of company net revenues will be spent on advertising and marketing budgets in the initial years, as there is a land grab."
 
The biggest beneficiaries will likely be digital media and agencies.
 
Mitch Garber, an experienced online gambling executive who heads up Caesars Entertainment's interactive division, said:
 
"Five years ago, the combined spend of all onsite-based gaming companies in online advertising was very small, limited to SEO for attracting visitors to book hotel rooms online and to come to the website. It's changing dramatically. ... There's no question that as an industry we'll be spending more time and money on interactive advertising."
 
Garber said that in his experience television is the most successful medium for attracting players, although his company would not be doing away with magazine, TV and billboard advertising.
 
Advertising Age reveals that Caesars Entertainment recently opened a search for a creative agency to oversee digital-media planning, buying and search.
 
The internet sector has particular appeal for the young adult demographic, and much of the creative in new marketing will probably be targeted on that, one advertising executive said, observing that most online gamblers are in their 20s, while the average land casino gambler is north of 50.
 
He anticipates that major land casino operators could double their marketing budgets to succeed in a legalised online gambling environment in the United States.
 
However, online gambling operations are costly and time-consuming because agencies must purchase licenses in states in which they're supporting casino advertising. Licenses for one casino client have already cost his agency around $500,000, said the agency executive.
 
Google's anti-internet gambling policies will also have to change in the event of legalisation.
 
John Schadler, founder and managing partner at Las Vegas-based agency SK&G said, "There will be a rush at the inception of the online sites to gain market share and notoriety. ... That requires initial branding efforts and initial media spend at a pretty strong level.
 
"It becomes an exercise in brand awareness," he added. "We're inventing a category."

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Gambling News :

Interwetten 2016 Earnings Results - Privately-owned online sports betting operator Interwetten delivered robust full year results for the 2016 fiscal period, in which the company has almost achieved doubling its revenues over the past four years, success it attributes to its in-house developed platform

EU Online Gambling Tax Harmoney Dead - Tax expert says European Court of Justice Attorney General's opinion on UK-Gibraltar litigation signals that EU courts are happy for individual member states to impose their own laws on online gambling.

Jack Lam Facing Big Fines in the Philippines - It's going to be costly for Macau online gambling and junket tycoon Jack Lam to return to the Philippines following his rather hurried departure last year with allegations of economic sabotage, bribery and tax evasion swirling around him.

Walter Merricks Term As Gambing Commissioner Extended - The UK Government has extended Walter Merricks’ term as Commissioner of the Gambling Commission for a further year, ending December 31, 2017.

Loot’enKhamun Pays $3.8 Million Jackpot - A London-based construction worker’s year got off to a great start when he hit the Loot’enKhamun jackpot at bwin casino.

PlaySugarHouse To Carry Konami Content - Content provider Konami will provide its Gypsy Fire and Fortune Stacks slot games to Rush Street Interactive-operated PlaySugarHouse.com on an exclusive basis in the New Jersey real-money online and mobile wagering market.

ITF TERMINATES BETWAY SPONSORSHIP DEAL - The International Tennis Federation (ITF) has reportedly terminated Betway’s three-year sponsorship partnership as an extension to their anti-match fixing and sports integrity policy.

GSA To Launch European division - The expansion enables the GSA to better focus on the regional needs of its members outside of North America and underscores its recognition and commitment to growing European membership.

Paddy Power Trading Update - Company prevails despite adverse sports and US election results; Trump success cost the group GBP 5 million, whilst punter successes took another GBP 40 million in Q4-2016.

Tabcorp SunBets project - The details were revealed this week in an IT News article quoting Tabcorp's chief information officer, Kim Wenn, who described the SunBets project as Tabcorp's biggest global venture yet.

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