If online gambling laws continue to become relaxed across the United states, it could represent a huge opportunity for entrepreneurs and investors.
Industry size
Offline gambling is actually a enormous market with validated demand, and several believe on the internet gambling is going to be llarger. Overseas, on the net betting is producing an estimated $32 billion in annual income — practically the size in the Usa casino market. Juniper Analysis estimates that betting on mobile devices alone will likely be a $100 billion worldwide industry by 2017.
New Jersey’s Governor Chris Christie not too long ago signed a law allowing Atlantic City’s casinos to run internet sites that take bets on games like blackjack, slots and poker, but require bettors to be physically present inside the state. Delaware lately passed equivalent laws. Nevada’s law, signed on February 21st of 2013, lets land-based casino operators provide on the web poker only.
No one appears far more qualified to exploit the chance than social gaming company, Zynga, with their established user base, expertise in driving engagement and virality, and iterative data driven product development approach. They’ve already hired an executivefrom 888 Holdings, a gambling business, begun investing in state and federal lobbying efforts, and have applied for an operator license in Nevada and count on to launch their initially real-money gaming merchandise in international markets within the initial half of 2013.
Given the lengthy licensing approach and regulatory concerns, new entrants are looking to partner with currently existing casino operators.
MGM Resorts and Boyd Gaming Corp, its partner inside the Borgata casino in Atlantic City, have arrangements with Bwin.Party, which runs Internet gambling from Gibraltar.
Inside the U.K., Zynga has partnered with Bwin.Party to offer you games including “FarmVille” slots for real-money betting.
Rational Group, the Isle of Man-based business that operates PokerStars, the world’s leader in real-money on-line poker, acquired the Atlantic Club Casino Hotel, one New Jersey’s 12 licensed casinos and will obtain and NJ Casino license with the transaction.
Concerns over social responsibility will have some consequences on investment considerations in the market.
Some large companies have policies against involvement with gambling, which reduces exit opportunities for companies within the business.
In addition, some large public equity investors, such as hedge funds, have policies against investing in gambling related companies and some general and limited partners of venture capital and private equity funds have similar policies, which could reduce liquidity in private markets.
Betable allows social game developers to add genuine, working gambling mechanics to their games.
Chris DeWolfe, a co-founder of the pioneering social site Myspace, is launching a gaming studio with a gambling component. Investors include Jeff Bezon’s, Founder of Amazon, and Eric E. Schmidt, Google’s Executive Chariman.
Many believe that on the net gambling will soon become as simple as buying an e-book or streaming a movie, and that the convenience of being able to bet from your couch, will present incredible opportunities for entrepreneurs.