Does mobile phone gambling go too far?
The practice of mobile phone gambling has gained prominence since 2005, according to a forecast from Jupiter Research center. The report suggested that mobile phone based gambling services would generate revenues as high as $19.3 billion by the end of the year 2009.
This number was contradicted by the research report on online gambling services conducted by Gartner in 2010. It stated that the amount of actual revenue stood as low as $5.6 billion. It has been anticipated that this huge difference between the two figures is on account of the introduction of various prohibitive actions taken by the US government against mobile phone gambling.
The market for mobile phone gambling is in a state of flux. Another big market for online mobile games is Europe. It has been observed by the world leading gaming evangelists that the European Union has not formulated a legislative framework for mobile phone gambling. Every country has different regulations for online gambling. For instance, Finland has authorized a government body to run the online gaming sites right from licensing to dissolution. On the other hand, Norway has resolved to completely prohibit online gambling activities.
A research report by Juniper suggests that the total amount of mobile phone gambling bets would increase to $48 billion by the year 2015.
This report used the following parameters to base this hypothesis:
- Growth in mobile phone gambling
Gaming experts around the world have witnessed a steep surge in demand for mobile phone gambling from players from various countries. It is simply human nature to stay engaged to their favorite pastimes and spend their leisure time in a productive manner. The main reason behind this inclination revolves around the monetary gains that players manage to make by playing a variety of online games. Most sites are in a position to offer lucrative bonuses to players without hesitation. This is a paradigm shift if you closely observe the trends followed by conventional land based casinos.
Many theories revolve around the cost of operations, which mainly propound that online casinos have an edge over conventional casinos with respect to costs. The nature of online casinos is neither capital intensive nor labor intensive. They have been successfully running the show with the least number of employees and negligible capital compared to conventional casinos. This is why they have been able to offer huge bonuses and cash rebates. Furthermore, gaming sites are now moving towards mobile phone gambling, as the trends indicate that players are looking for easier entertainment.
- Growth in lotteries and sports betting
Lotteries and sports betting have seen a stable demand in recent years. Traditional land based formats have seen cash rich patrons investing huge amounts with a view to earning strong returns. Trends suggest that players are seeking ways and means to find a single solution integrated with their hand held devices that enables them to access lotteries and betting services on the go. This is one of the reasons why gaming software development companies have been receiving requests from leading online casinos to develop comprehensive software. It would be beneficial for companies to stay invested in software that offers robust mobile gaming services to their clients.
- Ease of audit regulations
Stringent audit regulations have prevented many interested players with limited budgets from setting up a mobile casino. The latest buzz in the industry suggests that legislative authorities are going to ease audit regulations for mobile casinos. This raised the level of positive sentiment in the market. Many new companies have filed for licenses and are all set to take the industry by storm. The existing players are devising ways in which they would be able to set up this complimentary unit for distributing their gaming services. The process of making their sites compatible with mobile technology has already begun.
- The growth in mobile phone gambling providers in emerging markets
Many SMEs want to explore this industry, as it requires limited capital and doesn’t really involve lengthy set up procedures. This clearly indicates that the mobile gambling industry is all set to give tough competition to alternate online entertainment mediums. They also forecast the market to grow in size exponentially. All it needs is a little foresight to understand the nature of the market and its trends. Emerging markets are being flooded with groundbreaking ideas to serve new customers.
- The abolition of the Unlawful Internet Gambling Enforcement Act of 2006 by the US
There are many views in the market on the abolition of the Unlawful Internet Gambling Enforcement Act of 2006 by the US. The country is one of the leading markets for mobile gaming services. Players in the US have had trouble finding gaming providers, as many leading sites refrain from accepting US players. Gradually, the industry will break free from the burden of these legal issues with the abolition of this act.
- The ease of entry and exit barriers
The entry and exit barriers for this industry are likely to ease. This would encourage companies to not only fund, but also venture into providing mobile gaming services to the masses. This would lead to the formulation of a fair playing ground for all companies. This is a necessary measure that legislative authorities around the world are executing.
- The liberalization of mobile phone gambling policies in Europe
Europe has finally showed signs of liberalizing the mobile gambling services industry by forming clear regulations that better depict the legality of the services. Europe is considered to be one of the largest markets for these services and liberalization is a positive sign for all the parties concerned.
Sites offering mobile phone gambling have entertained millions. It is highly likely that mobile based gambling is going to reach greater heights in the theater of online entertainment. So, for people who still doubt whether mobile gambling will succeed, we suggest that you go with the assumption that it is here to stay.