Academical year 2008-2009
FACULTEIT TOEGEPASTE ECONOMISCHE WETENSCHAPPEN
Online Gambling: Sector report
Student: Bart Van Dongen, 20062998
The online gambling industry is a very young market. In this short life it has already grown extensively and experts say it will continue to grow in the future. Current revenues of the sector are estimated at $ 10 billion to $ 12 billion yearly and a related growth rate as high as 20%. The thriving market has, as any market, its problems. The legislation on the online gambling subject is not very clear in most countries. Also the lack of confidence of consumers is a major issue. Nevertheless the online casinos have succeeded in globalizing the gambling sector and obtaining higher profit margins than the original casinos because of the significantly lower start-up, maintaining and security costs. The gambling sites can provide services for a very large group with a wide variety of games to choose from. Because this market is so profitable, it is suggested to invest in. To avoid the listed problems an investment in an already existing company would be a good option. Further investigation on the possible gains and the most advantageous legislative environment is strongly advised before choosing the company to invest in.
The available research on this sector is very limited because of the premature phase and the very dynamic market conditions. Further investigation is strongly advised and necessary to obtain a broader understanding of the sector and its opportunities for potential investors.
Table of contents
Executive Summary 2
1. History and the development of online gambling 5
2. Difference between online and casino gambling 6
3. Online gambling: today’s possibilities 7
Gambling is an activity which can be found in almost every country or...