Gambling Companies Merge to Find Markets Elsewhere
With the current
legislation waiting to be passed in congress, online gambling
companies are looking for other ways to boost their business if
the new U.S. laws are passed.
European online gambling companies are quickly searching for new
opportunities and business ventures to increase the volume of
business in Europe and Asia and decrease their exposure in the
This turn around follow the arrest and indictment of online
gambling executive David Carruthers last month as he was on a
layover in Dallas Fort Worth airport.
Online gambling experts believe that the current climate
concerning online gambling in the U.S. will see a trend of
companies consolidating, especially major companies joining
forces with other gaming companies who are not exposed to U.S.
Online gambling companies are preparing themselves for the worst
case scenario - that is the anti online gaming legislation will
be passed. The U.S. market makes up for more than half of the
entire $12 billion online gaming revenue.
The stock market is also bracing itself for the worst. After the
arrest of Mr Carruthers, some rival online gambling companies
saw drops of up to 20% of their company shares, also many
advertising companies were pressurized by the government to drop
online gaming advertising campaigns.
Online gambling companies are now shifting their focus to the
largely untapped Asian market. Japan is one of the biggest users
of internet gambling sites and their banking systems are among
the most advanced in the world but the number of users doesn't
compare to the American market. China has huge potential because
of the enormous population, although some laws in China prohibit
internet service providers from allowing some online gambling
sites to operate. This heavy arm of the law is a major obstacle
Asian gaming revenue totalled $2.1 billion last year, which is a
fairly sizeable amount but still only accounts for one third of
the American market.
Because of these obstacles, the development of the European
market is beginning to look like a more viable option. Many
European companies with a strong European presence are likely to
be merged with other online gambling companies in an effort to
gain a strong presence in this market.
The U.K. has relaxed its gaming laws and is in the process of
legalizing online gambling, in an effort to skim off tax
revenues from these companies. Italy has taken a much firmer
stance, the same as the United States, and is blocking any
potential online gambling companies from operating there. This
is in an effort to protect their state run casinos.
Whatever happens in the Senate, most online gambling companies
are preparing themselves for the worst and are taking measures
so that they may weather the storm. The potential of online
gambling in the rest of the world holds much promise; it is just
a matter of building and nurturing new markets. Most gaming
companies consider this set back as "business as usual."