Commentators see trend of consolidation in online gaming
Posted by Gavin Smith on 29 Apr 2009 at 08:04
The internet gaming sector is now seeing an increasing trend towards consolidation of ownership, according to commentators.
Online-casinos.com said consolidation had become more common since new rules were brought into the UK in 2007.
The site gives the example of Sportech PLC's acquisition of Vernons in 2007, meaning that Sportech is now in charge of all of the UK's three major football pools brands.
Other deals are likely in the near future, according to the site, which also mentions the decision of Malaysian firm Genting International to lift its stake in Rank Group, which has sparked new bid speculation.
Elsewhere the entire gambling market on the internet is expected to grow considerably, after firms running remote gambling and based in Britain now fall under the Gambling Commission following the 2005 Gambling Act.
This, the site says, means it will be easier to properly estimate the size of the industry as these firms are now responsible for producing statistical reports every three months.
Elsewhere the one format which looks in trouble is bingo, mainly because of changes in regulation and increases in taxation.
Bingo on the internet could help the sector and could mean higher revenues for companies which have started to offer the game over the web.
Online-casinos.com also notes bigger internet firms are "buying up the affiliate businesses associated with various forms of online gambling".
Much of the business has been prompted by the spread of broadband and the fact more and more people are playing over the internet.
The site also ponders if the developments are good for players, with competition growing, and adds things "look good" for customers for the time being.
