05/10/2008 00:00:00

Recession Creates a Perfect Storm for Internet Gambling - Land Based Businesses to Suffer, Says New Report from GBGC

In spite of the current global financial crises, the worlds

gambling market is set to grow from US$345bn in 2007 to US$433bn by 2012

according to a new report published by Global Betting & Gaming

Consultants (GBGC) entitled: Change

is on the Cards.

However, it wont be plain

sailing for some sectors, according to GBGCs

Chief Executive, Warwick Bartlett.

The slowdown in the USA will hit the

pockets of Americans and Las Vegas will feel the effect of that along

with high energy costs and a transportation system reliant on road and

air. The US has not invested sufficiently in high speed rail and

destination resorts going forward will suffer as the cost of

carbon-based fuels continues to be an issue of cost and supply,

he said.

Bartlett is also of the opinion that the UK has missed out on the

opportunity to attract the global gambling market to the UK where he

feels the gambler is better off due to the probity of the operators,

social responsibility, and the value offered.

The bookmakers in October 2001 did a

deal with the then Chancellor Gordon Brown to repatriate their internet

gambling sites back to the UK in exchange for betting to be taxed on

bookmakers gross profits. For

five years it has worked well but now the bookmakers are losing market

share to offshore operators and the government needs to re-think its

strategy. The offshore bookmakers are now investing the tax saving in

marketing and scooping up the business. The current gentlemens

agreement is not sustainable in

my view, said Bartlett. The

UK is missing the opportunity to create jobs, wealth, and taxation in a

sustainable industry.

Change is on the Cards

points to an expanding market across Europe as governments come to terms

with rulings from the European Courts of Justice that gamblers should

have the same choice and value as shoppers. In Asia, the consultancy is

optimistic about the prospects for the two mega casinos in Singapore

with the potential for the second largest gambling nation, Japan, to

have a legal casino within 5 years.

The current economic downturn with high energy costs, cheap

broadband internet connection and a smoking ban in all licensed premises

in most countries of the world is creating a perfect storm

for internet gambling.

People are leaving their cars in the

garage, playing online bingo or watching a match on TV and placing a bet

from the comfort of an armchair,

said Bartlett. The land based

businesses are going to find it hard to compete with the value on the

internet and with as much as 30% of gambling revenue now leaving the UK

and going offshore the government should take note.

Global Betting and Gaming Consultants (GBGC) are based in the Isle

of Man. We are a specialist consultancy that concentrates

on the gambling industry. Change is on the Cards is the

fourth edition of the unique Global Gambling Report. Over a 1,000 pages

of analysis on each legalised gambling jurisdiction. GBGC

have appeared on most major TV networks and been quoted by The Financial

Times, The Daily Telegraph, Daily Mail, Forbes and Wall Street Journal.

Global Betting and Gaming Consultants

The USA

4th to 10th

October

Warwick Bartlett, +441624 827138 (office)

Cell

+44 (0)7624483921

Email: warwick@gbgc.com

or

UK

Lorien Pilling, +44 1624 827138

Popular news

LatestMost read
 

Post comment

Version: LiveBranchBuild_20100824.3 - EUROSRV22 - 2010-09-02 21:25:14 - 2010-09-02 20:25:14 - 3 - Website: OKAY