Global Gambling The Odds on Winner
15 Oct 2004
October 15, 2004 -- The Global Gambling Market has still been expanding in spite of the world economy slowing down according to a report entitled Double or Quits by Global Betting and Gaming Consultants (GBGC) released today to coincide with the opening of the G2E Global Gaming Expo in Las Vegas. Now as the oeCD sees economic growth in the globes largest economies growing during the 2nd half of 2004 GBGC expects that the industry is set to benefit from a double whammy as it receives payback from continued deregulation whose seeds were sown during the slowdown along with the rewards of massive investment in technology.
It has been the global slowdown that has acted as the primary catalyst for expansion says Warwick Bartlett GBGCs Lead Partner. We are seeing governments deregulate gambling so as to raise what are essentially voluntary taxes, a process we predicted two years ago and one that is now well underway he said.
Who would have thought Hong Kong Jockey Club would become one of the worlds largest bookmakers on soccer, the legalisation of casinos, slots and betting across the former Eastern Block, new legislation in the UK to allow resort and on line casinos and now the potential for casinos in far eastern markets such as Japan, Singapore, Taiwan, and Thailand alongside a newly opened up Macau market said Bartlett.
What assists the industry is that it has no inhibitions about utilising new technology and this really creates a dynamism that few other industries seem able to match. Video Lottery Terminals, (VLTs), Fixed Odds Betting terminals (FOBTs), Virtual Racing, on line casinos and betting along with sophisticated computer management systems have pushed the industry along through the acquisition of new gamblers as the ease of access has been improved, indeed it is this also that is challenging governments to deregulate their old laws said Simon Holliday GBGC Partner and co-author of the report.
There is a cautionary note as there will inevitably be some companies that will lose out. The companies that are likely to be the winners are those with the best marketing skills and that have the best and most cost effective scaleable technology. Marketing has always been important and will always be so but technology has now become key those that have a lead will be able to move ahead significantly said Warwick Bartlett. Bartlett sites the US casino majors, particularly MGM Mirage and Harrahs, GTECH, Ladbrokes and Betfair in the UK, Intralot from Greece, Boss Media from Sweden as being amongst those companies with excellent prospects.
The global gambling industry has already seen a substantial surge in value over recent years. During 2003 the net total lost by the worlds punters (Gross Gambling Yield) to the industry was US$208bn up 12.2% from US$185bn during 2000. GBGC is a leading specialist international betting and gaming consultancy that as well as delivering bespoke assignments on behalf of clients publishes the quarterly Global Gambling 50 Index and organise the highly acclaimed UK industry seminar in London each year.
