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Q: online gambling ( Answered 5 out of 5 stars,   2 Comments )
Question  
Subject: online gambling
Category: Business and Money > eCommerce
Asked by: onlinegames-ga
List Price: $100.00
Posted: 11 Oct 2005 12:41 PDT
Expires: 10 Nov 2005 11:41 PST
Question ID: 578975
I need a number of questions answered in relation to online gambling,
I require each answer to have a clearly stated source. If all
questions can not be answered I can accept that but please try. Time
is of the essence here. If possible for all questions, please not only
direct them to general online gambling but also Poker Rooms in
particular. If any clarification is required please feel free to ask
as I intend to check this question regularly.

? I require the revenue acquired in the year 2004 for online gambling,
and if possible 2005.

?  would like a list of the top 10 online gaming casinos and
top 10 online poker rooms, and the revenue that they are known to
make. If all 10 casino revenues can?t be shown just a couple will be
enough, but some must be given.

I don?t expect page long answers, the more in depth the better but as
long as the questions are answered and a source is provided that will
be fine.

Thank you in advance for your time.

Clarification of Question by onlinegames-ga on 11 Oct 2005 12:46 PDT
Any other information that is seen to be relevant will be highly
appreciated and tipped.

Clarification of Question by onlinegames-ga on 11 Oct 2005 12:49 PDT
I would also like a few articles in relation to the future of online
gambling and the trends that are currently being experienced within
the industry. Some general statistics in relation to trends will also
be highly regarded.

Clarification of Question by onlinegames-ga on 11 Oct 2005 12:53 PDT
Sorry about all the clarifications. 
Personal opinions in relation to the sustainability, future and
possibly weaknesses of the industry will also be highly regarded if
you have experience in business and relevant supporting evidence.
Information that I see relevant will be tipped to the maximum amount.

Request for Question Clarification by bobbie7-ga on 11 Oct 2005 16:33 PDT
Hello Onlinegames,

I located a recent commercial market report about Online Poker that I
believe would meet your needs. The price of the report is about
$US380.

Would something like this interest you?  If so, I can post the Table
of Contents so that you can get an idea of what is included.

Thanks, 
Bobbie7

Clarification of Question by onlinegames-ga on 11 Oct 2005 16:56 PDT
hey, thanks for the quick response, I would be willing to add a tip
for the information of where I could obtain this report however I
would like the primary questions answered. As these are my current
concerns.

Request for Question Clarification by bobbie7-ga on 11 Oct 2005 17:09 PDT
Hello Onlinegames,


Here is some general revenue information

Online gambling forecast

Web based gambling revenue will double in the next five years. The
online gambling market is expected to hit $24 billion by 2010.

Year      Revenue
2004:      8 billion
2005:     12 billion
2010:     24 billion

MIT Technology Insider: August 2005
http://www.technologyreview.com/articles/05/08/images/datamine_4.gif
http://www.technologyreview.com/articles/05/08/issue/datamine.asp



Here is the Table of Contents for the Online Poker report I mentioned.
  Please let me know what you think of this report.

Executive summary
Online poker ?Symbiosis of the two current mega trends: online gambling and poker
One of the most talked about phenomena in the gambling industry
Poker as part of the growing online gambling market
The poker boom
What makes online poker so successful ?Major success factors
The growing online poker market
Market size and revenues
- Amounts wagered and revenues made
- Forecast for 2005
- Top geographical regions
Who are the poker players?
- Demographics and motivation
Business model of poker sites
- Revenue streams
- Cost elements
Elements of good poker sites
Managing business risks specific to online poker
Overview of relevant online poker sites
Most important criteria for evaluating poker sites
Evaluation and analysis of leading online poker sites
Case Study ?Paradise Poker
Kahnawake/Canada ?Home of online poker sites
Entertainment and poker ?The perfect match
Poker ?The new star in movies and on TV
- Examples of successful Poker TV coverage
Good Entertainment needs stars and heroes ?Poker can provide plenty of both
Software providers
Market situation and business model
The most important factors in evaluating online poker software
Overview of major software suppliers
Future development
Growth estimates
Successful strategies for the future
Networks
Big brands moving into the online poker market
Acquisition, mergers, and consolidation ?Where to grow?
- Multiples of the Sportingbet/Paradise Poker deal
Europe ?Liberalization and increasing media coverage
Asia ?Billions of potential users, gambling mania, and an increasing
Internet penetration
Alternative investment opportunities ?Participating in the poker boom
Recommendations
Recommendations for existing online poker operators
Recommendations for potential new market entrants such as state
lotteries and media companies
Recommendations for financial investors

List of Exhibits
Online poker?s continuous growth potential and expected dominance of
online gambling offers ?Results of survey
Gross win development by sales channels ?Example
Broadband penetration in major countries world wide in 2004
Major success factors of online poker -Results of survey 
Forecast of rake and number of active online players for 2005
Regions with top potential for online poker -Results of survey
Poker players according to gender in the US and the UK
Reasons to play online poker
Rake/commission structure and tournament fee ?Example
Revenue and average revenue per active player (2001-2004) ?Example
Most important elements/characteristics of a good poker site -Results of survey
Number of poker sites used by the average player -Results of survey
among online poker players
Minimum number of registered users for a good poker site -Results of survey
The most successful marketing tools for online poker sites -Results of
survey and survey of online poker players
Examples of print advertising and sponsoring of online poker sites
The biggest online poker sites
Evaluation of the largest online poker sites
Example of online poker user experience
Active players of Paradise Poker (2001-2004)
Revenue and operating profit of Paradise Poker (2001-2004)
Selection of TV coverage of Poker in January 2005
The most popular TV poker shows -Survey of poker players
Poker-playing Hollywood celebrities
The most relevant factors in evaluating online poker software -Results of survey
Global annual commission revenue (rake) in 2-3 years -Results of survey
Successful strategies/market players in the future -Results of survey
Was the price Sportingbetpaid for Paradise Poker justified? Results of survey
Key multiples of the Sportingbet/Paradise Poker deal
A fully liberalized European gambling market by 2009? Results of survey
Internet access in China -2000-2004
Example of customer support experience
Example of customer support and trust issues
Overview of participants of survey



I also found another market report for online gambling in general.(208
pages) This one is a bit more expensive. It costs about US$485.


Description:
This report is "the most comprehensive resource for the online
gambling business market data available from any source."

?? is designed to be a "strategic business planning resource" for
executives in all segments of the online casino and gaming business.
There are numerous ways this handbook will benefit your company - from
market development strategies to competitor analysis - from consumer
trends to providing independent market data to support your business
plan. This is an easy and inexpensive way to fill any gaps in your
company?s market research.?

?The report is designed to provide an expanded understanding of the
online gambling industry. An analysis is provided, including current
and expected market opportunities, for the major industry sectors.
Market data is presented for the online jurisdictions along with
discussions relating to activities and opportunities. The report
provides a profile analysis of over 70 key players, and a future
market outlook. Although recent news headlines mainly address the many
issues facing the online gaming industry, the market is increasing at
an encouraging pace. The increase in the number of online gamers
continues to grow, keeping in line with the rapid escalation of people
accessing the Internet.?


I look forward to your comments, 

Thanks,
Bobbie7

Clarification of Question by onlinegames-ga on 11 Oct 2005 17:39 PDT
Hello, that research looks great and I would like to get the
information as to where I could obtain it from and thanks for the
revenue information. If you could also answer the second question as
although I intend to most likely buy the research papers I need the
second part of the information quickly and at the moment don?t have
time to go through a research paper as large as I assume this would
be.

Request for Question Clarification by bobbie7-ga on 11 Oct 2005 17:46 PDT
Hello again onlinegames,  

Another researcher is curently working on your other question.

Shall I post the links for ordering the two reports as the official
answer to this question?

Thanks,
Bobbie7
Answer  
Subject: Re: online gambling
Answered By: bobbie7-ga on 11 Oct 2005 18:59 PDT
Rated:5 out of 5 stars
 
Hello again Onlinegames, 

I did additional research and found relevant information for you.


An article, Online Gambling Sites Expect Big Payoffs,  published in
USA Today in February, 2005, says:

?More than 2,000 gambling Web sites this year will rake in nearly $10
billion in revenue, most from U.S. consumers.  That's up 40% from
2004.?

?Poker revenue is expected to double to more than $2 billion and
attract 1 million players a month. Americans play at 266 Web sites, up
from 53 in June 2003, says gaming site CasinoCity.com.?

PartyPoker.com, which is expected to haul in $1 billion in revenue this year

Offshore Gambling Association
http://www.osga.com/artman/publish/article_2497.shtml


==========================================



?Paradise Poker was purchased by Sportingbet, a publicly traded online
sportsbook, in October of 2004 for $297.5 million. Currently, other
online poker firms are considering becoming publicly traded firms.
Party Poker, Empire Poker, and Pacific Poker are all potential
candidates for a public offering.?

Other players are Poker Stars, Party Poker, Full Tilt Poker and Noble Poker.

Poker Tips
http://www.pokertips.org/history/online-poker.php


==========================================


?The purchase of Paradise Poker (one of the four largest poker
companies) for $297m by Sporting Bet in October 2004 has set a
mind-blowing precedence. Since last July, Paradise has continued to
experience substantial growth in rake and tournament fee income. In
recent months, Paradise's aggregate monthly rake and tournament fee
revenue has risen to over $7m and it is reported to have over 721,000
registered customers and over 97,000 active players.?

(?)

?Online poker is just starting to take hold in continental Europe.
Currently, British players make up about 80 per cent of the European
market and it?s interesting to note that between 30-40 per cent are
female players, compared with only five per cent of women players in
the offline world. Therefore, apart from other markets such as the Far
East, the rest of Europe is only now beginning to open up.?

Punters warm to online poker: 12th January 2005
http://www.theregister.co.uk/2005/01/12/online_poker/





------------------------
Party Poker (PartyGaming)
------------------------

?Party Poker became a publicly traded company on the London Stock
Exchange in June, 2005. Party Poker?s £1.14 billion stock-market
flotation was the biggest IPO in the UK for more than five years. Its
shares rose 11% on the first day of trading.?

(?)

?Party Poker accounts for more than half of the worldwide poker.? market.


(?)
?Party Poker reported $600 million in revenue and $350 million in profit in 2004.?



---------------------------
Paradise Poker (Sportingbet)
---------------------------

?ParadisePoker.com is operated by Sportingbet, a British company
traded on the London Stock Exchange and listed on the U.S. pink
sheets.

Sportingbet?s share prices nearly triple after it acquired Paradise
Poker. Online poker accounts for 40% of Sportingbet?s profits and most
of its earnings growth in 2004. Sportingbet is currently valued at
£870 million ($1.6 billion)?


----------------------------
Empire Poker (Empire Online)
----------------------------

?Empire Online is a marketing group which directs new players to
online poker and casino websites, principally Party Poker and
Casino-On-Net (888.com), two of the largest gambling networks in the
industry. Empire Online earns an ongoing commission for every player
it refers.?

(?)

?In 2004, online poker-related income represented 67% of Empire?s
revenue. In 2005, the number increased to 77%.?

Online Poker Center
http://www.onlinepokercenter.com/articles/online_poker/investing_in_online_poker_stocks.php



==========================================


Sportingbet Confirms Offer Approach for Online Poker and Casino
Promoter Empire Online

?Following Friday's announcement by online poker and casino promoter
Empire Online that the company was entertaining a £790 million (~ $1.5
billion) offer approach.?

(?)

?Sportingbet confirmed the offer approach, but also stated that the
current talks with Empire ?may or may not lead to an offer.?

?Empire Online is estimated to be worth approximately £773 million (~
$1.4 billion), and has earned a value of this caliber by driving
traffic and offering marketing services to online gaming sites.
Although Empire Online helps promote both online poker and casino
sites, the bulk of its revenue is derived from online poker. In
addition, the proportion of revenues earned through promoting poker
online can be expected to grow, as poker continues to become
increasingly dominant in the online gaming market.?


Source: Poker777 Staff 
Monday, 5 September 2005
http://www.poker777.com/20050905/sportingbet-confirms-offer-approach-for-online-poker-and-casino-promoter-empire-online_0f4c_odihjr.php


==========================================


As a result of the Sportingbet Plc acquisition of Paradise Poker, some
Paradise Poker revenue details were revealed.

?Since 31 July 2004, Paradise has continued to experience substantial
growth in  rake and tournament fee income. In August and September
2004, Paradise's
aggregate monthly rake and tournament fee income was US$6.6 million and US$7.0 
million respectively.? 



Read more here:Poker Pulse
http://www.pokerpulse.com/pp/about.htm


==========================================


Here?s a directory of all current online poker rooms
http://www.pokerpulse.com/action/rooms.htm


==========================================


I am reposting the general revenue information below for your convenience.


Online gambling forecast

Web based gambling revenue will double in the next five years. The
online gambling market is expected to hit $24 billion by 2010.

Year      Revenue
2004:      8 billion
2005:     12 billion
2010:     24 billion

MIT Technology Insider: August 2005
http://www.technologyreview.com/articles/05/08/images/datamine_4.gif
http://www.technologyreview.com/articles/05/08/issue/datamine.asp



==========================================



Research and Markets is the provider of the two reports I mentioned.
http://www.researchandmarkets.com/info/about.asp



Here are the direct links to each market research report.


Online Poker ? Driving Gambling To New Heights 
EUR? 313.00 is around $US380
http://www.researchandmarkets.com/reports/297197/
Table of Contents
http://www.researchandmarkets.com/reportinfo.asp?report_id=297197&t=t&cat_id=7



Online Gambling Market Research Handbook 
EUR? 401.00 is around US$485
http://www.researchandmarkets.com/reportinfo.asp?report_id=10768
Table of Contents
http://www.researchandmarkets.com/reportinfo.asp?report_id=10768&t=t&cat_id=5




Search terms:
Online gambling revenue billion +poker 


I hope the information provided is helpful!

Best regards,
Bobbie7
onlinegames-ga rated this answer:5 out of 5 stars and gave an additional tip of: $50.00
Exactly what i needed, thank you for the quick response.

Comments  
Subject: Re: online gambling
From: bobbie7-ga on 12 Oct 2005 00:15 PDT
 
Onlinegames,

Thank you very much for the five star rating and generous tip!

Sincerely,
Bobbie7
Subject: Re: online gambling
From: mikedisanto-ga on 12 Oct 2005 08:38 PDT
 
Here is an Executive Summary for starting an Online Poker site.  You
might find it useful in your research.

It has endnotes and statistics that summarize the online gamming
industry (i.e. poker rooms) and forecasts for one, three and five
years from iGamingNews.com

http://venturesolutionsllc.com/pdf/Online_Gambling_Executive_Summary.pdf

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