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Online casinos financial report Vs land based casinos (Page 1 of 2)

In this article I will analyze these two industries, trends, regulations, profits and overall status.

It is clear that there is a battle going on between the online casinos to land based casinos. I took for example one of the biggest and strongest land based casinos – MGM ( $7.7 B) and one of the successful online casino company-888 Holdings ($1 B).

These companies are good examples since they are leaders and reflect the industry very well.

The war started a long time ago but I think it escalated in 2006 with the coalition of anti-gambling conservatives, together with Las Vegas interests and law enforcement which forced the government to ban online gambling.

Analysts estimated, at that time, that the amazing success of online casinos was over. Traded online casinos went down and everybody thought they were finished but it turned out to be the biggest mistake ever. Since then, land based casinos have been losing their power to online casinos.

Countries all over the world have realized that it is better to regulate online casinos rather than ban them because people will always find ways to gamble and to play the casino and banning them loses millions in taxes.

Take for example MGM

MGM together with Dubai world fund (which is a government investment fund. Its assets under management are excess of $100 billion and the revenue was $10.6 billion to in 2006) are short of funding in their $3.5 billion ( still pending) project “CityCenter” in Las Vegas due to the reluctance of the banks to give such a big loan to the project. German Deutchebank and Suiss Credit are among those banks.

The raising of finance for e $3.5.billion projects should have been completed

by end of June 2008. The cost of the project is $100 million a month.

“At present, no company in America has been able to borrow such sums from the banks” said James Maren, President of MGM Mirage in an interview with Bloomberg TV.

Just look at the trading charts of MGM. Earnings per share went down nearly 50 for the last year due to a decrease in players and a decrease in earnings.

There are several reasons for this:

First, the economy is in bad shape, gas prices are constantly rising, inflation is rising and US debt is more than $9.4 trillion and rising $1 billion a month. The stock market is also not doing well.

Second, it has become very expensive for Americans to travel to Vegas. When you pay more than $4 a gallon, you don’t drive and you don’t fly, simply because you rather save this money then spend it on traveling.

Third, online casinos are on the rise and taking a lot of players from them. With fast internet connections, smart and sophisticated online casinos and huge numbers of casinos guides, you have everything you need you need to optimize your bet.

888 HOLDINGS

888.com is one of the successful online casino operators on the web. It trades on the London Stock Exchange; market value is about $1 billiard.

Switching to Internet Bingo?

Thinking of switching to internet bingo? If so, you’re not alone. Experts in the online bingo industry are predicting a huge increase in the number of bingo players on the internet. Who plays bingo and why the sudden surge in the number of bingo fanatics who are choosing to play online?

The old stereotype of little old ladies sitting in a church basement chain smoking is no more. In recent years there has been a surge of younger players both on the internet and at land based halls. While male bingo players are still relatively rare (about 15%) studies have shown an increase in the number of men playing bingo on the internet. Bingo, whether online or land based, is still dominated by females. Online, women comprise 85% of players while at land based halls they account for 70% of all players.

Several factors combined are contributing to this increase in online players. Internet Bingo sites can offer much larger jackpots and a wider variety of brand name prizes than their land based counterparts. In Europe and the US smoking bans have literally emptied some land based halls and sent players to the internet. In the UK alone it is estimated that the new smoking ban could account for as much as a 63% increase in new internet bingo players. Convenience is a major factor for the switch to internet bingo. Given the fact that most bingo players are women and a majority have children, many women choose to play online because they can play and watch their children at the same time. It is obviously more convenient for a woman with children to play bingo on the internet. No baby sitter is needed and occasionally a parent will allow the children to participate in the game.

When making the switch to internet bingo what makes players choose one site over another? There are many reasons cited by experts in the industry. Most internet bingo players, like a majority of the general population, are not tech savvy and a site that is user friendly is more likely to attract players than one that is difficult to use and uses technical jargon. The attractiveness of a site, while a minor factor, can often make a player choose one site over another. As with any other business customer service and reputation are major factors attracting players and retaining them. In the past there have been some fly by night operations that gave the whole industry a bad rap. Most of these are now nonexistent.

The jackpots and prizes offered by internet bingo sites are significantly larger than those of their brick and mortar counterparts. Prizes such as expensive plasma televisions and all expense paid vacations are common on the internet but virtually unknown in land based bingo halls. The social aspect of bingo is cited as one of the main reasons players congregate in land based bingo halls. Internet bingo offers the same social interaction through the use of chat rooms. Internet Bingo has a real advantage here because the internet is global in scope and players from different cultures and countries can interact. Over half of online bingo players use the chat rooms and cite it as a major reason they play on the internet.

Internet Bingo is a steadily growing industry around the globe. With all the competition between the many sites consumers have the upper hand. Clearly internet bingo is the wave of the future.