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Q: online gambling 2 ( Answered 5 out of 5 stars,   2 Comments )
Question  
Subject: online gambling 2
Category: Business and Money > eCommerce
Asked by: onlinegames-ga
List Price: $200.00
Posted: 11 Oct 2005 12:44 PDT
Expires: 10 Nov 2005 11:44 PST
Question ID: 578977
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 primary advertising methods employed by the online
gaming industry. They must also be accompanied by an example of
companies generally employed to provide the advertising services and
if possible the costs associated.

? I require as detailed as possible market segmentation for online
Gambling, i.e.: Who plays, when they play, level of skill, age,
average length of time that a user is subscribed to one site, the
average amount of money wagered, ext? Preferably for online poker
specifically.
? Also I need to know what creates loyal players and what are the
primary concerns of online gamblers are; preferably for online poker
specifically.
? Any other information that is seen to be relevant will be highly appreciated.

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.

Request for Question Clarification by umiat-ga on 11 Oct 2005 17:18 PDT
Hello, onlinegames-ga
 Before I get much further, in light of my colleagues reference to the
market research reports on gamblin - I am wondering if you want me to
continue researching an answer to this question.
umiat

Clarification of Question by onlinegames-ga on 11 Oct 2005 17:41 PDT
Hello, I would like to get the research paper however I don?t have
time at the moment to go through what I assume will be a very large
article, so yes please do continue to provide answers to these
questions as these are my primary concerns at the moment. Thank you.

Request for Question Clarification by umiat-ga on 11 Oct 2005 17:51 PDT
Thanks, onlinegames-ga,
 I will see what I can find for you.
umiat

Request for Question Clarification by umiat-ga on 11 Oct 2005 17:53 PDT
Also - how soon do you need this? It may take a bit of time. Can you
wait a day or two?

Clarification of Question by onlinegames-ga on 11 Oct 2005 21:26 PDT
Hello, that?s fine although a quicker response would be highly
appreciated. However I would prefer quality of speed.

thanks again in advance...
Answer  
Subject: Re: online gambling 2
Answered By: umiat-ga on 11 Oct 2005 23:43 PDT
Rated:5 out of 5 stars
 
Hello, onlinegames-ga!

I have compiled what information I could readily find outside of
market research reports to help answer your questions pertaining to
online poker and gambling. The scarcity of information on this subject
is the primary reason that expensive market research reports exist! In
lieu of those, I have tried my best to come up with some sources which
can provide a basis of knowledge to help you formulate an answer to
your various questions. While I could not find definitive answers for
all of them, I believe I have compiled enough references and excerpts
to give you a good overview.


============
ADVERTISING
============

From what I have found, it appears that the gaming sites themselves
are responsible for their own, innovative methods of advertising!

=

"In the 1980s, Alex Czajkowski penned a weekly computer column for his
college newspaper at Carnegie Mellon University dubbed "Beating the
System." Today, that title neatly describes his job. As a marketing
executive for an offshore Internet gambling company, he and his
business rivals are drawing from an ever-expanding bag of tricks to
promote online betting in the U.S. -- where the casinos and the
advertising of them are considered illegal by the government.

"Shut out by most mainstream media outlets, Mr. Czajkowski's company,
Sportingbet PLC, which runs Sportsbook.com, has sponsored a top
American bull rider, a professional women's volleyball duo and an
Arena Football League team. It has also placed full-page ads in two
airline frequent-flier magazines, and its racy billboard-style ads
featuring Playboy model Brooke Burke are displayed on the sides of
trucks parked at National Football League games."

"Why can't I advertise on ESPN? Sports Illustrated? Those are the
viewers that care about my product," said Mr. Czajkowski, marketing
director for the Americas region for London-based Sportingbet, which
is publicly traded in the United Kingdom and lets people bet on
sporting events and play casino games."

With online gambling booming in popularity and poker, in particular,
enjoying a newfound fan base, the companies behind Internet casinos
have grown increasingly creative in their efforts to promote their
products. Most print and broadcast outlets refuse to accept ads
explicitly for Internet gambling, citing the government's assertion
that it is illegal for U.S. residents to gamble on offshore sites."

"PartyGaming PLC, a large online gaming company based in Gibraltar,
has been credited by its rivals for making shrewd end runs around the
advertising restrictions in the U.S. The company runs ads on cable
news channel CNBC for a Web site that teaches people how to play
poker, but does not allow actual gambling. The advertised site,
PartyPoker.net, makes no mention of the company's popular gambling
site, PartyPoker.com, though it would be easy for someone to make a
typing error and land on the betting site. PokerStars, based in Costa
Rica, employs a similar strategy and has run ads on NBC and the cable
game-show network GSN."

"Another company, Golden Palace Ltd., based on the Caribbean island of
Antigua, has used an assortment of marketing stunts to attract
bettors. It recently spent $15,099 on eBay for the right to
temporarily display the name of its Web site, GoldenPalace.com, on the
chest of swimsuit model Shaune Bagwell. Earlier this year, it coughed
up $4,050 on eBay to garner advertising space on a pregnant woman's
stomach. And the company spent $28,000 on an eBay auction last year
for a 10-year-old grilled-cheese sandwich that appeared to bear an
image of the Virgin Mary."

"Online casinos want to be connected with sports to stay close to what
they see as their target demographic. Sportsbook.com's typical
customer is a man in his early 30s with an annual income of more than
$70,000, Mr. Czajkowski said. He has tried to reach such people by
putting up posters in bars during events such as the NFL playoffs,
running billboard ads during the men's college basketball tournament,
and running ads in the in-flight magazines for Continental Airlines
Inc. and American Eagle Airlines, the commuter carrier for AMR Corp.'s
American Airlines. His company also sponsors prizefights on cable TV's
Home Box Office, and he has tried to woo fans of minor sports such as
rodeo, where Sportsbook.com sponsors top bull rider Dustin Elliott.
Mr. Czajkowski said his annual marketing budget is more than $10
million."

"Sportsbook.com made a splash last year when it signed a promotional
deal with Ms. Burke, the model who has appeared in Playboy and has
hosted cable TV shows. "That was something new and got a lot of
attention on the posting forums [for online gamblers]," said John
Vega, founder and CEO of Dimebetting.com, a rival site. But Mr. Vega,
who relies primarily on e-mail marketing, search-engine directories
and word-of-mouth to promote his site, said he wonders whether many of
the marketing tactics used lately by Internet casino companies mostly
amount to "hype" and have little impact on revenue."

"However, because of the restrictions on mainstream advertising, Mr.
Czajkowski said, it's hard to turn any one campaign into a smash hit.
Instead, he tries to have his brand show up in so many places that it
leaves an indelible mark on bettors' minds. In the days leading up to
the Super Bowl, he said, sign-ups by users of Sportsbook.com doubled
from a year earlier, and he credited his wide variety of strategies.
"If you ask anyone - what works," he said, "the answer is that we do
100 little things. That's our mantra."

Read entire article - "Online Gambling Sites Get Creative To Beat
Advertising Restrictions," by DAVID KESMODEL. THE WALL STREET JOURNAL
ONLINE. February 24, 2005
http://online.wsj.com/public/article_print/SB110850472711755662-Oj3pMh24ucihrvGv0V4xkwgPIHo_20050326.html


==

Magazines:

Online poker rooms and casinos find magazines a good source of
advertising, as evidenced by the display of advertisers in CardPlayer
magazine (see ads for  PartyPoker.com, FullTiltPoker.com,
PokerStars.com, UltimateBet.com, Bodog.com):
http://www.cardplayer.com/mediakit/advertisers.php?page=ad

=

Advertising rates for online poker rooms and casinos can be found in
CardPlayer Magazine:
http://www.cardplayer.com/mediakit/onlineprintrates.php?page=pr

"Online Gaming Advertisers - For example: online poker rooms, online
casinos, and miscellaneous companies who do most of their business
online (we do not accept online sportsbook ads).

                   Gross       Net  
Per Insertion -   $9,800*     $8,500* 
 
(Also see rates for Back Cover, Inside Back Cover and Permanent page insertion)

==

From "PEOPLE v. WORLD INTERACTIVE GAMING CORP." 
http://www.oag.state.ny.us/internet/litigation/wigc.html

"WIGC is a Delaware corporation that maintains corporate offices in
New York. WIGC wholly owns GCC, an Antiguan subsidiary corporation
which acquired a license from the government of Antigua to operate a
land-based casino. Through contracts executed by WIGC, GCC developed
interactive software, and purchased computer servers which were
installed in Antigua to allow users around the world to gamble from
their home computers.

"GCC promoted its casino at its

 * website, 
 * advertised on the Internet,  
 * and in a national gambling magazine. 

The promotion was targeted nationally and was viewed by New York residents.

==

From "Nevada Bets On Legalized Internet Gambling." Gambling Magazine
http://www.gamblingmagazine.com/articles/23/23-469.htm

"In New Jersey, where a similar bid to legalize cyber-betting failed,
state prosecutors sued three offshore companies that run online
casinos, claiming the companies violate state laws by taking bets.

The state filed the lawsuit last month, saying the companies
advertised in New Jersey,

** in part by placing billboards along the Atlantic City Expressway,
which leads to the state's casinos." **


==

From "HOW MUCH DO YOU WANT TO BET THAT THE INTERNET GAMBLING
PROHIBITION ACT OF 1997 IS NOT THE MOST EFFECTIVE WAY TO TACKLE THE
PROBLEMS OF ONLINE GAMBLING?," by Andrea M. Lessani. The UCLA Online
Institute for Cyberspace Law and Policy. May 1998.
http://www.gseis.ucla.edu/iclp/alessani.html

One online casino advertised by toll free numbers on their website and
mail solicitations:

"1) Minnesota residents accessed and received transmissions from the
appellants' Web site; (2) Minnesota residents called the toll-free
number advertised on the Web site; and (3) at least one Minnesota
resident was placed on the appellants' mailing list



=====================================
DEMOGRAPHICS- MARKET SEGMENTATION
====================================

"A recent study conducted by researchers at Eastern Michigan
University offers valuable information on the characteristics of the
internet gambler. Though the sample consisted entirely of casino
patrons, the researchers wanted to find out how internet gamblers
differed from those who only gambled on land based casinos in terms of
demographics and behavioral characteristics, as well as what predicted
willingness to try internet gambling."

The key results of the study were:

* Education level seems to predict internet gambling - 52% of internet
gamblers had a bachelors degree or higher while among those who did
not, 23% had a Bachelors degree or higher. 27% of internet gamblers
had a high school diploma or less while among casino-only gamblers
that group represented 57%.

* Marital status may be a reliable predictor of internet gambling -
75% of those who did not and would not try internet gambling were
married while only 56% of internet gamblers were married.

* Internet gamblers spent the most time online and have the most
access to the internet - Of online gamblers, 92% had internet access
at home and 59% at work. Of those who would not consider online
gambling 73% were online at home and 42% at work.

* Internet gamblers were more comfortable with and trusting of
internet security and services. - Over 95% of internet gamblers had
made purchases online compared to 59% of those who had never gambled
online. 86% of those who would consider online gambling had made a
purchase over the internet. A significant difference in comfort level
was detected between internet gamblers and non-internet gamblers when
asked when asked whether or not they were comfortable doing their
banking on the internet.

* Those who would not consider internet gambling agreed most strongly
with statements such as "I do not:
  Take chances 
  Spend money on unusual items 
  Like new different styles 

* Several important conclusions can be drawn about internet gamblers
based on the study. - 37% of casino goers gamble online as compared to
5% of the general population. Internet gamblers spend less time in
land based casinos than non-internet gamblers. If a person starts to
gamble online he or she is likely to continue and likely to visit a
land based casino less frequently.

From "Internet Gamblers: Who, Why, and How Often? (Profile of the
Internet Gamblers: Betting on the Future Woodruff, C., Gregory, S.
(2005). Profile of Internet Gamblers: Betting on the Future. UNLV
Gaming Research & Review Journal, (9)1, 1-14.)
http://www.public-health.uiowa.edu/pattc/Gambling/Gambling-research.htm


* (Read further for Differences within Gender Groups)


==


Poker Demographics compiled by Card Player.com: 

Gender:
Male: 96%
Female: 4% 

Age:
Under 21: 2%
21-40: 52%
Over 40: 46%

Poker Skill Level (as rated by the reader)
Advanced: 21%
Intermediate: 61%
Beginning: 18%

How Often Travel Over 100 Miles to Play Poker:
3 times or more annually: 36%
1-2 times annually: 38%
Never: 26%

How Often Play for Money at a Public Poker Room:
4 or more days per week: 8%
1-3 days per week: 18%
Less than weekly: 74%

How Often Play for Money at an Online Poker Room:
4 or more days per week: 8%
1-3 days per week: 10%
Less than weekly: 82%

Broadband vs. Dial-Up Access to CardPlayer.com
Dial-Up: 25%
Broadband: 75%
(ISDN, DSL, Cable, T1)

Source: September 2003 Card Player Reader Survey
http://www.cardplayer.com/mediakit/demographics.php?page=de

==

"Most studies suggest that the demographics of online gambling are
broadly similar to those of the offline gambling population, with a
spread of income, gender and education. Nielsen-Netratings claims that
5.9 million Europeans visited online gambling sites in January 2003,
up from 2.8 million in the preceding January."

From Caslon Analytics profile: web demographics.
http://www.caslon.com.au/demographicsprofile10.htm

==

"Online poker is minting a whole breed of young, aggressive players
who are taking the sport by storm in part because they can gain
experience quickly. Poker online moves fast, with time restrictions
for considering bets. With no waiting for a human to shuffle and deal,
people often play more than 30 hands in an hour. Some play at multiple
tables, using extra-large or dual computer monitors.......And those
players can get a chance to do what is impossible in almost any other
sport: Start from nowhere and be able to challenge the best in the
game. "How many people wouldn't love to go one-on-one with Michael
Jordan?" said Daniel Negreanu, 30, a top professional who moved from
Toronto to Las Vegas in his early 20s to pursue a poker career. "Poker
offers people of all sizes and ages the chance to be a superstar."
 
See "Poker's Popularity Proves a Hot Hand for Gaming Industry," by
Jonathan Krim. Washington Post. September 6, 2004
http://www.washingtonpost.com/wp-dyn/articles/A64457-2004Sep5.html

==

"Spurred by the growing coverage on TV, teens are putting down their
video- game controllers and picking up the cards. Thousands of
players, from college kids to grandmothers, are joining the action on
the Internet. According to PokerPulse, $100 million is wagered each
night in online poker. Some of the larger sites can attract up to
40,000 or 50,000 players a night.

Read "Poker That Needs No Poker Face." BusinessWeekOnline. August 16, 2004
http://www.businessweek.com/magazine/content/04_33/b3896121_mz070.htm  

==

Women and Online Poker:

"According to the folks at Sportsinteraction.com, women now outnumber
men at Internet casinos; they cite industry studies that show "many
women prefer to double down while sitting at home in front of a PC."
Since the first online casino was launched in 1995, Internet gambling
has grown exponentially, with estimated revenue of more than $6
billion a year and nearly 2,000 Web sites offering everything from
sports betting, lotteries and blackjack to bingo. According to one
industry study, 53 percent of those who gamble online rather than in
casinos in the United States were women, and the numbers - like those
of women gamblers generally are growing."

"Online poker and other games of skill have become alternatives for
women because they don?t "have the same macho element, the same level
of competitiveness and people butting heads as they do in a casino,"
added Anthony Munnelly, vice president of sports and events for
Sportsinteraction.com. "Because it is so private, you can hide your
losses even more easily than a trip to the casino or bingo hall, and
people can be in extremely deep trouble before the family has any clue
as to what is happening," she said."

"For women, in particular, the risks are great, she said, noting
studies that show men and women gamble for different reasons. "Action
gamblers" tend to be men, in search of a "high" by playing games of
skill like poker, blackjack or sports betting. Women, on the other
hand, tend to be "escape" gamblers, attracted to games of chance like
slot machines, video poker, lotteries or bingo, using gambling as a
way to escape depression or physical or emotional pain. "This is a
very lonely person?s activity," said Berlin of Internet gambling, "and
maybe this is why many women are being lured into it."

From "Women drawn to online poker," By Mackenzie Carpenter. Pittsburgh
Post-Gazette. July 28, 2005
http://www.fortwayne.com/mld/journalgazette/living/12242080.htm

==

"Online gambling firms are looking to expand their internet poker
provisions into Europe, feeling that the region has the highest growth
potential, according to a survey of industry stakeholders by online
poker portal Pure-Poker.com. The survey, of internet gambling industry
members revealed that 51.1 per cent rated Europe (UK, France, Germany,
Spain, Italy and Scandinavia) ahead of North America (41.8 per cent)
and other worldwide regions. The results suggest that the poker
industry is expanding eastward away from the traditional US markets,
looking to Europe for faster rates of growth in relatively untouched
and wealthy markets. Other factors that make Europe an attractive
growth prospect includes the high penetration of broadband, good
levels of disposable income and the favourable legal status of online
poker. Europe is attractive from a cultural perspective too: industry
members said they consider Europeans to be card-game savvy - many of
the traditional card games originated in Europe - and a large majority
are comfortable with English language websites."

From "Online gaming firms see Europe as ripe for internet poker," by
Leigh Phillips. DME. 09/03/2005.
http://www.dmeurope.com/default.asp?ArticleID=6589

==

As reported by PC Pro: "The French have taken to online gambling like
a duck a l'orange to water, according to Europe-wide figures from
analysts Nielsen//NetRatings. "February's numbers showed that more
than 22 per cent of those online spent over an hour betting. This was
about three times the average UK online gambler spent having a
flutter. The French can also boast of nearly twice as many sessions as
their UK counterparts. "That's not to say the UK isn't committed. More
than 14 per cent of online Brits gamble on the Internet - a rise of 45
per cent year on year. "...But one French reader has pointed out that
there is another factor driving online gambling in France. 'In France,
the only legal betting is through state controlled channels, which are
PMU (Pari Mutuel Urbain) for horse races, Lotto, National Lottery ...
Casinos and gambing machines are only allowed in some towns that have
a special status ... anything else is stricly illegal,' he says..."

From "British vs. French." April 21, 2005.
http://www.launchpoker.com/news/_british-vs-french_/

==

"Paul is a currency broker who plays poker to relax when he gets home
after a hectic day at work in London. The 26-year-old logs on most
nights of the week, sitting down at a virtual card table and battling
opponents for up to four hours at a time. As a hobby it is not unusual
and poker is one of the UK's fastest growing ways to gamble.

"So what is it that makes the pastime so attractive and why has the
value of the global market more than tripled in size to close to
$1.5bn (£827m) over the past two years?"

Why we gamble

* A way of escaping from stress or problems
* Lure of the buzz, excitement, high adrenaline release
* The competitive element - trying to beat other players, the bookie, or the 
  dealer
* The thrill of risk taking, placing large bets

"One reason is that poker is seen as a game of skill rather than luck,
where one player is pitted against another and as Paul puts it, "the
cream always rises to the top". Another is the spread of the internet
and our increasing confidence in the safety of online businesses. On
top of that, gambling is becoming an increasingly hip and accessible
means of entertainment - just look at the resurgence of Las Vegas in
the US and plans to build massive casino complexes in the UK."

"According to research group Forrester, 76% of the UK's 29 million
adult internet users admit to regularly placing a bet either online or
offline."

"What makes the internet such a good medium for gambling is that the
computer, or the front door into the casino if you prefer, is often
sitting somewhere in our house."

"Previously, there was always a chance that your gambling urge would
come at a time when there was nowhere open to place a bet. Now "it's a
problem 24-7", said Adrian Scarfe, clinical practice manager at
gambling addiction counselling and advice service Gamcare. "In the
last three years we have seen a change," he explained from his office
near London's financial centre. "Internet gambling has risen steadily
and in my view it will continue to rise." According to Gamcare's
latest report, of the 4,452 first time callers that provided details
of their gambling experiences, 9% stated that the gambling was taking
place on the internet."

"Interestingly, in a world where gambling addicts are predominately
male, more and more women are signing up for online gaming services."

From "The growing allure of online poker." Source: BBC News Online, 02/06/2005 
http://www.mentalhealth.org.uk/profilenews.cfm?pagecode=PEGIGALN&areacode=mh_gambling_news&id=8038
 
  
==

From a 2002 study:

"The new study revealed a surprising trend: Online gamblers tend to
have lower education and income levels -- a demographic that bucks the
trend of overall Internet users compared with the general population.
The study said online gamblers also tend to be younger and unmarried.
It found no significant gender differences."

Read "Study: Online Gamblers May Have Serious Problems," by Tim
McDonald. NewsFactor Network. March 18, 2002
http://www.newsfactor.com/perl/story/16814.html


==

"Internet gamblers were also more likely to be unmarried and younger
than those who never used the internet for gambling. They also tended
to have lower education and income levels than non-Internet gamblers,
which is surprising, according to the researchers, since access to the
internet is traditionally associated with people that have higher
income and education levels. No significant gender differences were
found between internet and non-internet gamblers.

"The availability of internet gambling may draw individuals who seek
out isolated and anonymous contexts for their gambling behaviors," say
the authors. "Accessibility and use of internet gambling opportunities
are likely to increase with the explosive growth of the internet."

5.2  The Social and Commercial Impact of Interactive Gambling Services:

"Because internet gambling is accessible via cyberspace rather than
fixed sites if presents an even greater risk than gaming machines to
minors. Mark Griffiths and Richard Wood examined the effect of video
games and the Internet on adolescents. They argue that technologically
advanced forms of gambling may be highly appealing to adolescents and
therefore constitute a high risk factor.  The authors also argue that:

* "Online gambling is essentially a solitary asocial activity. Problem
gamblers are far more likely to gamble alone rather than as part of a
social event."
 
* "Gambling with e-cash lowers the psychological value of money.
People spend far more with non-cash equivalents in both gambling
environments (eg. chips, tokens, smart cards) and non-gambling
environments (eg. credit cards, store cards).

* "It is very difficult for Internet gambling operators cannot easily
screen out vulnerable groups from play eg inebriated people,
adolescents, people with criminal record, adolescents, people with
mental illness."

* "Unlike other forms of gambling, Internet gambling operators know
exactly how long a gambler is at their site, what he or she gambles
on, the size of each individual bet, and what other sites the gambler
has visited. Such detailed customer tracking allows the potential for
unscrupulous operators deliberately to target the large spenders who
may very well be the problem gamblers."
 

Excerpts from "Review of Interactive Gambling Act 2001." Submission to
the Department of Communications, Information Technology and the Arts.
April 29, 2003.
http://66.102.7.104/search?q=cache:SauwnjZnEeIJ:www.dcita.gov.au/__data/assets/word_doc/10945/South_Australian_Heads_of_Churches_Gambling_Task_Force.doc+gender+of+online+gamblers&hl=en

==

"Gambling by mobile phone has rocketed, with the number of betting
pages downloaded expected to approach 3 million this year; a rise of
367 per cent in 2004. The conclusion of research by Mintel has sparked
concern that the almost unlimited access to gambling provided by
mobile phones will fuel a rise in adiction. Another potential problem
is children gambling by phone.

From "Gambling by mobile phones is booming" by Martin Hickman. The
Independent. Sept 21, 2005.
http://news.independent.co.uk/uk/this_britain/article314007.ece

==

An interesting insight:

"Online poker is a bit different. Teenagers generally can?t play poker
for money legally, in either real or virtual cardrooms. But with the
play money games available at virtually every online poker site,
teenagers can get plenty of practice before they turn 21. And as is
the case with video games, they tend to have a lot more disposable
time than players just a few years older. Although I don?t know the
demographics of the play money games on the popular online poker
sites, I do know that those games are thriving, typically outnumbering
the money games handily."

"Although many serious poker players trace their skills back to well
before they could legally play in casinos, few if any could claim the
sheer volume of practice one can now get routinely, both online and
via computer-based tools. I?d personally played the equivalent of
hundreds of hours of tournament no-limit hold?em online before I ever
sat down at a casino table. I can?t claim to have terrorized the
tables, but I?ve certainly done much better than I would have if I?d
had to pay for my lessons in cash. And the practice I was able to get
was fairly limited compared to what?s available today. There are
certainly additional skills associated with live poker that may keep
some of these players from excelling beyond the online arena. And
likewise, there may be players who will be only mediocre at online
poker who will benefit greatly from face-to-face competition. But on
the whole, the ready availability of training at a variety of forms of
poker raises the possibility of a dramatic change in the kinds of
players in the average cardroom."

"Although online poker has obviously had some impact on live poker, my
guess is that a big wave of online-trained players hitting the
brick-and-mortar cardrooms is still a few years off. The popularity of
online poker probably matured about two years ago, although it hasn?t
peaked, and it takes time for all those players to filter into the
cardroom. Most intriguingly, 16-year-olds who started spending endless
nights learning to play poker at that time are still too young to play
poker for money, either online or live. In all probability, there?s a
growing generation of underage future poker players getting orders of
magnitude more practice than any previous generation."

From "The Generation of Experienced Novices," by Daniel Kimberg. Card
Player Magazine Volume 16, No. 23
http://www.cardplayer.com/poker_magazine/archives/?a_id=13624&m_id=77

==

"The APA study found that 74% of people who gamble online are
"problematic" or "pathological" gamblers. And, according to David
Robertson, with the National Coalition Against Legalized Gambling,
teens are most at risk to fall into the habit of gambling on the
Internet." "Gambling is the fastest growing addiction among youth
today," Robertson said. "They spend more money on gambling than they
do on drugs, and the American public doesn?t know that or doesn?t
recognize it or doesn?t want to see it." What makes Internet gambling
even worse is the anonymity of it, said Dr. Bill Maier, a child and
family sychologist in residence at Focus on the Family. "In the old
days, a person had to go to Las Vegas to gamble and he could be seen
there sitting at the slot machines for 36 hours and people are raising
an eyebrow. Now, you can go into your office or your bedroom for 36
hours and blow your entire life savings on Internet gambling and no
one knows."

From "Most online gamblers have serious addictions." Family News in Focus
http://www.afa.net/gambling/articles.asp 


Additional:

"14m Europeans gambling online," by Leigh Phillips. DME Europe. 2005
http://www.dmeurope.com/default.asp?ArticleID=7383



=======================
LOYALTY/CONCERNS/BETS
=======================

"Nearly a third (31 percent) of online gamblers are not satisfied with
Internet gambling sites. Only 15 percent of respondents feel online
casinos are more fun than their offline counterparts. Furthermore, 89
percent are willing only to play for free, and a majority of those who
do risk money spend less than $10 per visit."

"The most serious gripe is that some 60 percent of the 2,000 people
surveyed believe online gambling sites are "fixed." Despite their
discontent, the online gambling public visits multiple online gambling
sites, with most people visiting two."

"The message of this research is that those behind online gambling
sites must do more to win the confidence of people who visit their
site," said Rudy Nadilo, president and CEO of Greenfield Online."

"Of those who opened accounts to play for money, most use a credit
card or a debit card to fund their accounts. Nearly 70 percent,
however, are concerned about the safety of using their credit or debit
card at an online casino. While most respondents do not want
government intervention, nearly three-quarters (72 percent) feel the
convenience of online gambling will foster more gambling addictions."

From "Online Gamblers Are Not Satisfied, In Spades."
http://www.gamblingmagazine.com/articles/23/23-259.htm 

==

The following information concerning bet size does not focus solely on poker:

"Betting on games is the lead line in gambling in North America,
although online casinos and poker are even more popular - which is not
yet reflected in Sportingbet?s profile in the US and Canada. But the
biggest gamblers of all are to be found in Australia: where the global
average spend on gambling is one per cent of total consumer spending,
it?s five-and-a-half per cent in Australia/New Zealand, according to
The Economist Intelligence Unit. Sportingbet?s average bet size in
Europe is £22; it?s $59 in America and a whapping £226 in
Australia/Asia. I ventured that Asia must be an outstanding market
opportunity, given the role of gambling in the culture."

From "The £1 billion bet - Mark Blandford gave Ruari McCallion the
full SP about SPORTINGBET?S online revolution of the gambling
industry." British Industry. June 2004
http://www.themanufacturer.com/britishindustry/content_page.html?article_id=146

==

Bet size on sports gambling sites:

"Carruthers says that most of those betting on his site are hardly
wagering the monthly rent. The average NCAA tournament bet on his site
is $60, compared to $50 during the regular season. Last year 1.6
million bets were placed on the tournament for a total of $96
million."

From "Don't bet against online gambling," by Chris Isidore, CNN/Money.
March 25, 2004.
http://money.cnn.com/2004/03/26/commentary/column_sportsbiz/sportsbiz/

 
==

Also see "Just 13% of online gambling site visitors have wagered for
real." Internet Business News,  Oct 17, 2001.
http://findarticles.com/p/articles/mi_m0BNG/is_2001_Oct_17/ai_79199148

==

With the prevelance of online poker and gambling sites, companies have
to institute loyalty and affiliate programs to retain customers. The
following articles touch on these schemes:

"Casino Customer Relationship Index." Pokerroom.com Forum. September 20, 2005 
http://www.pokerroom.com/pokah/forum/messageBody.php?threadNumber=79382

Rakeback Sites
http://www.bettingmarket.com/rakeback.htm



======================
ADDITIONAL INFORMATION
======================

Excerpt from "Review of Interactive Gambling Act 2001." Submission to
the Department of Communications, Information Technology and the Arts.
April 2003.
http://66.102.7.104/search?q=cache:SauwnjZnEeIJ:www.dcita.gov.au/__data/assets/word_doc/10945/South_Australian_Heads_of_Churches_Gambling_Task_Force.doc+gender+of+online+gamblers&hl=en

 
"One area in which the availability of gambling services has increased
is online. The fact that the presence of casinos is not limited to
terra firma but instead increasingly take the form of online venues
further complicates this problem. According to Informa Media group,
online gambling revenues will increase 400% by 2006 ($15.5 billion) up
from $3.81 in 2002 (eMarketer, 2002). Datamonitor (2001) likewise
forecasts that U.S. and European revenues from online gambling will
increase from $6.7 billion in 2001 to $20.8 billion by 2005. This
increase in cyberspace-based gambling opportunities leads one academic
to opine:

"In many countries there appears to be a slow shift from gambling
being taken out of gambling environments and into the home and the
workplace (and in the case of Internet gambling it has gone from being
site specific to being in cyberspace" (Griffiths, 2002, pp. 148-149).

==

The following paper has some interesting insights you might find
useful for your research;

"Motivations to Regulate Online Gambling and Violent Game Sites: An
Account of the Third-Person Effect," by Fang Wan, University of
Manitoba and Seounmi Youn, Emerson College. Journal of Interactive
Advertising. Fall 2004 http://www.jiad.org/vol5/no1/wan/#gender

==

"Which online poker sites are safe bets?," by Jennifer Mulrean. CNN Money
http://moneycentral.msn.com/content/SavingandDebt/P112493.asp

==


 I hope the information I have provided is helpful and provides a good
start for your research.


Sincerely,

umiat


Search Strategy

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Clarification of Answer by umiat-ga on 11 Oct 2005 23:54 PDT
Two more:

Competition for players is heating up!

"PartyGaming move points to peak in online gambling," by Nils Pratley.
The Guardian.  October 11, 2005
http://www.guardian.co.uk/business/story/0,3604,1589133,00.html

"Investor confidence in internet poker hit a new low yesterday as
PartyGaming, the market leader, effectively forced a divorce on the
so-called "skin" companies whose online marketing skills have helped
to fuel the game's astonishing growth. PartyGaming's decision to sever
long-standing partnerships with these "white-label" operators will be
seen as the start of intense competition among poker sites. Until now,
most sites have concentrated on recruiting newcomers to online
gambling. Yesterday's move may herald competition for established
players.....

==

"Gambling most popular vice for young men." UK News. October 7, 2005.
http://www.lse.co.uk/ShowStory.asp?story=TR618348L&news_headline=gambling_most_popular_vice_for_young_men

"Nine-in-10 have a flutter in some form or another, 38% at least once
a week and a startling 63% once a month, according to Nuts magazine.
The survey of 1,100 men and women aged between 18 and 35 found we are
becoming a nation of gamblers. Scottish men are the biggest punters
with 48% placing a bet at least once a week and spending on average up
to £40 a month."

"The biggest motivator for men to gamble is to make a game and event
more interesting to watch (30%). But almost as many said they gambled
because they are convinced they will make a big win one day (28%).
Some claim that the increase in online sites has made it easier for
guys to gamble (11%) and others say celebrities have made it more
fashionable (two per cent)."

"The amount of money bet has risen sharply in recent years largely
because of the rise in online gambling. Just ten years ago the UK was
spending £1.4m on online betting, a stark contrast to the £6.4m that
is being spent now. Four million are gambling each month online, and
since 2003 the amount of money bet on line has risen by 566%!"
onlinegames-ga rated this answer:5 out of 5 stars and gave an additional tip of: $20.00
I must say you guys are amazing. EXCELLENT!!! Nothing more I can say.
I amazed you could come up with such details in such a short time
frame.
A million thanks.

Comments  
Subject: Re: online gambling 2
From: umiat-ga on 12 Oct 2005 06:53 PDT
 
And a million thanks to you for your kind words and extreme generosity!
Subject: Re: online gambling 2
From: mikedisanto-ga on 12 Oct 2005 08:42 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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