BUSINESS

Online gambling earning up to $30 billion globally

TAGs: Business, H2 Gambling Capital, odobo, Online Gambling

h2-gambling-capitalOnline gambling is a very, very lucrative industry; that much we can all agree on.

H2 Gambling Capital, the industry’s leading consulting, market intelligence and data team, recently conducted a commissioned report by games developer Ododo titled “Opportunities for Game Developers in Regulated Real-Money Online Gambling”. The general objective of the report was for H2 Gambling Capital to outline the size of the global regulated online gambling market and introduce new and useful data on potentially lucrative opportunities for game developers like Odobo.

Although the primary objective is as such, certain details contained within the report shed some light on actual figures, specifically the gross revenue of real money online gambling around the world, pertinent to the financial state of online gambling in the world.

In the report, H2 Gambling Capital mentioned that with the exception of lottery and skill-based games, regulated real-money online gambling already generates up to $30 billion in gross wins globally. Accounting for the biggest piece of the pie is the UK and Europe with 54 percent of the market.

The report also indicated the potential of the US market in light of recent legislation getting passed in a number of US states. If things go according to current expectations, the US is slated to earn gross winnings of just over $7.4 billion by 2017, representing around 30 percent of the global online gaming market with continuous growth expected annually.

In addition, H2 Gambling Capital also estimated the pace by which convergence between real-money gambling and social casino gambling can grow in the coming years. With just over $30 billion generated in 2012, the number could grow to as much as $40 billion by 2015 if current forecasts prove to be on the spot. H2 Gambling Capital also indicated that social casino game developers and operators can take advantage of additional revenues from real-money gambling to jump start its their marketing strategies that could eventually give developers with an RMG presence a leg up over competitors without a presence in the sector.

The report states that developers of real-money games earn royalties of seven to 15 per cent of the gaming revenue generated by play of their games. This royalty results in average revenues per user for the game developer of 30-40 times those resulting from social gaming.

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