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Why a Saturated Online Gaming Market Spells Good News for Gamblers

Personal_Finance / Gambling Jun 26, 2019 - 01:51 PM GMT

By: Submissions


Anyone looking at all the casinos online today could well wonder exactly how an industry that simply didn’t exist three decades ago could have become quite so huge.

Any Google search will reveal literally hundreds, if not thousands, of operators clamouring for business and trying to stand out from the crowd. While it’s not easy to exactly quantify how many online casinos there are, one good barometer for measuring the size and health of the industry is to look at the UK Gambling Commission figures. The Commission was set up to oversee all aspects of the industry so is the single most reliable source of information in a world where the operators themselves are reluctant to release much information about their operations, beyond what is required of them by law.

Figures released by the Gambling Commission in May 2019 showed that over the previous year the gross gambling yield generated by the industry was £14.5 billion, a significant amount but a 0.4% decrease on the figure from the year before. Of this amount, £5.6 billion had been raised by remote gambling in all of its forms. In this case, the amount had increased by 2.9% compared with the previous year. So even in a market that is shrinking, nominally at least, the online sector is in very good health.

As with all booming sectors this has an effect that some people may find rather counterintuitive in that it attracts more and more entrants. Logically, one might expect that the entrepreneurial approach might be to pick on a field in which competition is less and the opportunities to stand out is greater. After all, one of the reasons that the Tesla car make has become known the world over has been because Elon Musk spotted a hole in the market – innovative electric cars – and decided to go for broke.

To take the argument back to the online gambling market, where does this leave the players? Do they simply have so much choice that they don’t know where to go for the best games or is it the perfect example of a booming free market that means that everything is available, whatever your particular requirements.

The fact is that the so-called saturated market has proved to be very good news for gamblers and this is perhaps why this part of the sector continues to expand at a very respectable rate while gambling revenues in general are showing signs of decline.

Competition breeds innovation

The first thing that any online casino that wants to thrive has to do is to offer a distinctive and appealing service to its players. And, the greater the competition, the better their offering has to be.

So huge amounts of investment have gone into the branding of the biggest and most successful players in the market, exceeded only by their investments in new games and ways to play. For players this is undoubtedly good news, especially as novelty and innovation are what almost all look for in their online gaming. So it’s possible to argue that it’s this arms race to be the biggest and the best which has led to the sorts of innovations that are now fairly commonplace today. These include the “live casino” where dealers play real games in real time very closely replicating the “bricks and mortar” casino experience.

Or, if you were to look at the online casino’s biggest money spinners, the slots, you’d also find that the sheer range and choice of new slots sites available has never been greater and the interactive technology behind them has never been so advanced. So, in sheer terms of the pleasure and excitement that can be derived from the saturated online gaming market it has surely been good news for players everywhere.

Offers bring players

Of course, the greatest businesses in the worlds would get nowhere if they didn’t have the right marketing too and this brings us to perhaps the most beneficial aspect of the saturated market for the player. Anyone familiar with the 5Ps of marketing will know that one of the most critical is promotion. When competition’s fierce, making special offers is often all it takes to sway consumer choice. And if it works for soap powders with money off vouchers, it certainly works for online casinos too.

It’s fair to say that every single one of them makes some kind of joining offer to lure in new customers. For some it’s a simple cash incentive for others it’s the offer to match the player’s initial deposit up to a set level. For bingo sites it can be a number of free games, or access to exclusive ones to welcome new members. Slots, meanwhile, are easy to promote with the bonus of a number of free spins.

These offers are so widespread that, just like the chance we get to compare credit cards or home insurance on aggregator sites featuring meerkats or opera singers, a large number of so-called affinity sites have sprung up. These give players the chance to get an overview of all the many offers available and compare them with each other. By clicking through and joining via the affinity site they get to enjoy the bonus and the affinity site earns some commission.

Another great piece of tried and trusted marketing wisdom is that it’s easier to retain existing customers than to gain new ones, all the leading sites in this busy market also have variations on loyalty schemes. The more regular the player, the higher the rewards they can receive, and the more likely they’ll be to stick around – a small price to pay for big benefits.

It would certainly be fair to say that the saturated market has many distinct advantages that put the ball very firmly in to player’s court. And with new entrants to the sector appearing virtually daily, we can only expect those advantages to grow and grow.

By Jamie

© 2019 Copyright Jamie - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

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