Online poker business trends

Since the passing o f the UIEGA by USA, online gaming has been passing through a lot of uncertainty about the legal status of online gaming in the USA. There is much speculation about the future and no clear picture. However it does seem that individual states would be allowed to have their own legislation and regulations relating to online gaming.

Industry growth

Online gambling is still considered a growth industry, as it only began to boom and see real growth in the late 1990s but has experienced some slowdown due to the US Government passing the UIEGA. However, there are also new markets opening and these have to some extent reduced the impact of the slowdown in the market growth of online gaming. Sites looking to survive in the future need to work on their strategies and customer retention policies. Various estimates on the size of the online gambling industry range from about $20 billion-$50 billion per year in revenue, with about 20,000-30,000 active sites serving customers. The online gambling industry encompasses a wide range of sites, including online casinos, sportsbooks, poker rooms, bingo parlors, lotteries, horse racing sites, and more.

According to According to GBGC the global gaming revenue forecasts are set to increase even more until 2015 as can been seen in the graph below.

You can find a very good report on the present state of online gambling industry here: KPMG Online Gaming Report

Future Prospects

The future of online gaming lies in the development of the delivery mechanisms as well as the convenience with which people can connect with each other. The explosive growth of social media sites as already proven that it is possible to bring a large group of people with common interests online quite easily. With the arrival of mobile communications technology such as tablet and smartphones, the availability of online gaming to customers can only become easier. Therefore there is a large market share that can satisfy every niche service provider.

Market Consolidation

There has been a lot of talk about market consolidation in the industry. However, the problems associated with very large operators will continue to provide adequate space for smaller players, particularly in niche and emerging markets. For example, a player who deposits on Wed and wants to cash out on Thursday will find it impossible to deal with the bigger sites. Such customers are always going to gravitate towards the sites that provide immediate service.


We thus conclude that there is sufficient scope for small and big operators to gain adequate market shares in various geographic areas regardless of global competition. This can be achieved successfully by tailoring services to serve the local customers and meet their specific demands.