Source: Informa Media Group


Electronic Gambling revenues to grow tenfold

23rd January, 2002

    Electronic gambling revenues are forecast to grow almost tenfold between 2000 and 2006, according to a new report from Informa Media Group. The Electronic Gambling report forecasts that revenues will reach $14.5 billion by 2006, assuming that the legislative status quo will not change dramatically. 

    For instance, Internet gambling will remain an offshore activity for punters in the U.S. and Japan, with no iTV or legal mobile gambling services available by 2006. Gambling is one of the few content sectors that has so far avoided the dotcom crash, and the economic downturn is expected to only slightly affect the sector.

    By 2006, 55% of electronic gambling revenues will come from fixed-line Internet, with 41% coming from iTV and 4% from mobile gambling. The breakdown of users is slightly different, with Internet accounting for 49%, iTV for 44% and mobile 7%. The reason for the difference is that Internet gamblers are expected to be more frequent and serious users, who bet higher amounts mainly on casino games. ITV gamblers are more likely to bet smaller sums on sports events.

    There will be 142.5 million electronic gamblers by 2006, who will bet an average $102 each annually. The 70 million Internet gamblers will bet an average $114 each, whereas the 62 million iTV gamblers will bet $95 each.

    Tight legislation and the unlikelihood that the law will be relaxed means that the slice taken by the U.S. will fall from 63% of electronic gambling revenues in 2000 to 24% in 2006. Europe and Asia Pacific will take on much more important roles as electronic gambling services become more widespread. Europe's proportion of total revenues will rise from 20% in 2000 to 53% in 2006.

    The European proportion of electronic gambling users will be even higher at 58% by 2006. This indicates that sports betting, which usually involves lower expenditure than casino gambling, will be the most important means of electronic gambling in Europe. 

    Competition is to intensify since land-based operators (bookmakers and casinos) are migrating online and new registrations of Internet-only casino and sports betting operations in gambling-friendly jurisdictions are still going strong. The entry of larger international players will eventually lead to consolidation in the Internet sector.

    Electronic Gambling is published by Informa Media Group, which produces several business information documents, including the Broadband Media and New Media Markets newsletters.

Gambling Forecast Table - PDF file

Contact details:
Chris Groner
Media Analyst/Reporter
Tel: 020 7017 4256

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