Study On Online Gambling Market
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Contents
Executive Summary
Introduction
Market Definition
Market Sectors
Market Size
PEST Analysis
Porter Five Force Analysis
Competitors Analysis
Boston matrix
Shareholders
SWOT Analysis
Conclusion
Executive Summary
For thousands of years, mankind has enjoyed spending money on games of chance. Today this has developed into a multi-billion dollar worldwide phenomenon- the gambling industry.
While the total number of gambling enterprises has fallen in recent years the overall number of people employed in the industry has increases, suggesting that enterprises are now larger than they were a decade ago. The way people bet has been revolutionised of recent years with the online gambling industry taking over the traditional high street bookmakers. Betting exchanges on the internet where punters can offer bets to other punters. Meaning the average punter can now act as the bookie and say that a certain event will not happen.
To understand the impact of the gambling industry, one has to consider the percentage of people that partake in gambling. Knowing it has been around for two millennia, it is interesting to observe today 80 to 85% of people will gamble in any given year.
The gambling industry has evolved greatly in recent years due to the development of online gambling, this is clearly the reason for the rapid growth in the market. Along with new markets such as the online poker industry, that has taken the world in a massive fad with millions playing poker online.
The gambling industry tends to be an industry in which people will use their disposable income, but the desire to win more and the increased joy from having a larger bet causes people to spend more money on gambling than they wish. This is a market driver for the industry but also the general increase in people gambling has become the main market driver in recent years.
(Party Gaming) For the five year period from 2005 to 2009, it is estimated that revenues generated by the global online gaming market will increase to approximately $22.7 billion, representing a compound annual growth rate of approximately 22 per cent.
From this estimation of expected spending in the online gambling market, it shows a market with great potential.
Introduction
The following report analyses the dynamic market within which gambling exists, and the way the online gambling industry beginning to takeover the gambling industry. From the report on the market it will be possible to have a clearer understanding of whether the market will continue to grow or whether the market can not continue to grow at such a rapid rate.
The following report analyses the dynamic market within which online gambling exists. The report will focus on areas such as
PEST Analysis
Boston Matrix
Porters Five Forces
Competitors Analysis
SWOT Analysis
Shareholders
Such consideration of the market will enable a clearer understanding of whether the market will continue to grow at such a rapid rate.
Market Definition
Market sectors
There are four main gambling sectors that attract the vast majority if online gambling
Online Poker
Online Casinos
Sports Betting
Betting Exchanges
Online poker and betting exchanges are dominating the market and have only been introduced in recent years to the online gambling market.
Sports betting and casinos still have large market share of the market but growth has slowed down.
The size of the online gambling market for 2004 was $8.2 billion for the world. In 2004 in the U.K Ј7.4 billion was spent in gambling. Even though stats are not that easy to compare it shows that online gambling has not yet dominated the gambling market and there is potential for further growth.
PEST Analysis
PEST Analysis is analysis of macro-environments that affects all firms. PEST stands for Political, Economic, Social, Technological factors of the external macro-environment. Such external factors are beyond most firms control and sometimes present themselves as threats. On the other hand changes in the external environment can lead to new opportunities; this is certainly true for the gambling industry.
Political
Political and legal factors are those controlled by governments, local authorities, or other trade or activity orientated regulatory bodies (Brassington and Pettitt, 2000). Gambling legislation is put in place in order to prevent consumers been taken advantage and also help control consumers with gambling problems. The internet is open to great abuse in all areas of the internet and gambling is no exception. Within five minutes it is possible to be gambling on the internet at as high stakes as one desires, this obviously has its dangers. Companies have recently been pushed to be more responsible for caring for their customers. Some of the companies now have a system which its customers can use. The system offers the customer control of how much they can deposit in a designated time period, this helps the customers control their spending. Though this may affect profits for a company, it gives the impression that they care for their customers, which promotes their company. The laws for online gambling are reasonably relaxed and with it been a worldwide market that anyone from any