Industry information. Must Read.
Online Gambling Study Hits The Net
Industry - May 6 1998
According to recent strategic research by Frost & Sullivan (http://www.frost.com), World Markets
for Online Gambling are expected to grow exponentially throughout 1998, as competition
intensifies and increasing number of new participants enter the market. Although the legislative
environment for Internet gambling is still hazy, by the year 2000, the United States and many
other countries are expected to have either determined or begun legislative debates on the legality
of Internet gambling in their respective countries.
The Internet is rapidly becoming an essential means of commerce and communication
across the globe. As the number of people accessing the Internet continues to grow, so will
the number of on-line gamblers, creating an abundance of business opportunities for
informed market players. For the company that aims to capture the business and loyalty of
online gamblers, extensive marketing and advertising campaigns will prove key to
establishing its competitive market position and overall success in the market.
To provide an in-depth analysis of the market, this study divides the Internet gambling
industry into two segments: online gambling software and online gambling operations.
Although the market was relatively small in 1997, both segments are expected to grow
significantly throughout the forecast period.
The on-line gambling software segment focuses on software sold for developing on-line
casinos and sportsbooks, generating $11.4 million dollars in revenues during 1997. Market
drivers, of which all market participants should be keenly aware, include international
gambling cultures, industry self-regulation and Internet user demographics.
Expected to experience phenomenal growth in the years to come, the on-line gambling
operations segment focuses on on-line casinos and sportsbooks where players can gamble
with real money via electronic cash transactions. In 1997, this market generated $444.0
million in wagering transactions, and accounted for 96 percent of the total Internet gambling
market. High profitability, historical precedent, and international gambling cultures will propel
this market to phenomenal growth.
"The rush has already begun, as many companies have rapidly been setting up online
operations to establish early leads and mindshare in the market," says Frost & Sullivan
information technology industry analyst Steven Woo.
The company that plans to capitalize on the opportunities in the World Markets for Online
Gambling will find this market research to be an invaluable source of market analysis and
insight.
Technologies covered in this report include: Java, security, encryption, 3D animation,
client-server, video/sound cards, electronic transactions, e- cash, Internet, online,
entertainment, bandwidth, and virtual.
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