Tag Archives: giants
Room For More Growth Say Bingo Industry Experts
According to some internet bingo industry insiders the internet bingo industry is leveling out after a period of rapid expansion. During the last few years the UK has seen a proliferation of new internet bingo websites but things seem to be slowing down somewhat. It would appear that the online bingo gold rush is over. For a while it was incredibly difficult to keep up with all the launches of new bingo sites but according to experts the industry is now leveling off. Competition for players is still keen and most bingo sites are offering players ever increasing bingo bonuses, higher jackpots, more bingo and side games and vastly improved technology. Some internet bingo experts believe 2010 will be the year when internet bingo comes of age complete with mergers, acquisitions and takeovers.
Some gambling giants have entered the internet bingo market. Las Vegas gambling giant Harrahs has launched a new bingo site and the venerable bookmaking firm of Ladbrokes has operated a top internet bingo website for years. Despite the entrance of gaming giants established smaller internet bingo operators are holding their own against the large operators. Bingo operators who take their players for granted do so at their own peril and smaller operators are responding to challenges by gambling giants with highly original marketing using social networking websites such as Twitter and Facebook. Many smaller operators have added more side games and it has been reported that online roulette is running a close second to bingo in popularity among female players.
Since the larger operators have bigger budgets they can easily offer huge jackpots and engage in massive marketing campaigns. Since younger players are more tech savvy online marketing campaigns have been very effective for smaller operators allowing them to remain competitive in a somewhat cutthroat business environment. Internet bingo websites that offer opportunities for social interaction between players have a high player retention rate.
Figures suggest that internet bingo will be a $2 billion dollar a year industry by 2012. Industry experts say that internet bingo revenues for 2010 could easily approach $1.2 billion dollars. The CEO of Virtue Fusion, a bingo software developer, Bob McCulloch believes that the internet bingo industry has a very bright future. McCulloch stated, “After the developments we have seen over the past few years, it is somewhat inevitable that industry commentators are questioning if the UK market has started to reach maturity. It might now be worth hundreds of millions of pounds but there is still room for growth for online bingo. There is certainly more scope for new licensees on the network, though it is likely this will be at the expense of some of the smaller and less creative operators” In other words, smaller operators must stay ahead of their more well heeled competitors of go under.
Gaming Giants Bidding For Illinois Lottery Contract
Gaming Giants Bidding For Illinois Lottery Contract
Four huge gaming firms are bidding on the Illinois lottery contract and two of these gaming giants have teamed up to bid on the 10 year contract. Both firms, GTECH Corp. and Scientific Games Inc., have had contracts for instant lotto tickets and lottery equipment since 1989. GTECH, which is based in Rhode Island has been a major player in the gaming industry and is a subsidiary of Lottomatica which is the world’s largest lottery operator. According to GTECH , both companies control 63% of all lotteries around the world giving both companies extensive experience in operating lotteries.
GTECH currently provides Illinois with lottery terminals and ticket dispensers at lottery retailers throughout Illinois and also provides the central gaming system computer that operates the terminals. Last year the Illinois legislature indicated they wanted to move the state lottery towards private management. Lawmakers hope private management will boost sales by an additional $150 million which would be used to fund infrastructure projects. Illinois lottery revenues have remained steady at about $2 billion dollars a year. Illinois had considered total privatization of the lottery until the Justice Department ruled that states cannot relinquish control of lotteries.
Other gaming giants bidding on the Illinois contract include Camelot from the UK. Camelot has extensive experience running the UK National Lottery. Intralot S.A., based in Greece, is also expected to bid. Illinois is also considering online lottery ticket sales and most of the firms bidding on the Illinois lottery contract have experience providing online lotto ticket sales. At the present time confusing federal regulations regarding online gambling are preventing several states from implementing online lottery ticket sales. Thanks to a new bill introduced in congress all that may change in the very near future.
If the regulations are changed and Illinois is successful in implementing online lottery ticket sales most states are expected to follow. Most players say they would purchase lottery tickets online citing convenience as the main reason for online purchases. Players would no longer have to make a trip to a lottery retailer and stand in long lines to buy lotto tickets. Most states with lotteries already have lottery websites and it would be very easy to add online ticket sales. The technology and software for online ticket sales are readily available and most of the firms bidding on the Illinois contract are ready to launch online ticket sales. It will be very interesting to see the results of the bidding war.