Is Online Gaming Industry Recession Proof?

By: emma g Click author's name for more of his/her articles

The good news is that the growth in popularity of online gaming sites has injected interest in the traditional gambling sector with increasing numbers of players including casinos and bingo halls into their regular entertainment. Ernst & Young stats however, that some parts of the industry having already suffered due to adverse regulatory changes whilst other parts are still untested by the recession.

Ernst & Young attributes the online effect in the ability to attract players from across the world as a huge advantage over traditional gaming. Some of the top online poker rooms such as Full Tilt Poker have peak time player traffic of over 20,000 unique users from the US , UK , Europe and Australia for example. Unlike traditional land based casinos there is no restriction on the number of players that the site can support and no added costs for increased capacity. Land based casino have huge expenses in staff wages, regulatory costs and overheads which the online gaming sector avoids.

“The online gaming industry is likely to do better than other gaming sub-sectors as it is not solely reliant on the state of the UK economy, it is still going through a growth phase and with consumers saving money by staying at home I believe it will be a winner.” commented the head of hospitality and leisure at Ernst & Young, Cameron Cartmell.

Online gaming operators can also take comfort in the fact that people are increasingly staying at home and placing low stakes online and, that because online gaming attracts a younger audience, it means players are less affected by falling share or property prices.

The strength and stability of the online gambling industry was reinforced last year when Google lifted their ban on paid advertising for UK licensed operators.

Much of the growing popularity comes from the huge financial benefits that online gambling operators offer players. For years Online Poker rooms have offered Massive deposit bonuses and loyalty programs. Since 2004 Online poker players have also been enjoying a system known as Rakeback which is similar to a cash back scheme. These types of promotions are unique to the online gaming industry because of the close relationships the operators have with affiliates.

One can only wonder if the newly appointed online gambling friendly president and continued appetite for online gambling will force the US Government to reassess their anti online gambling laws in order to profit from one of the few industries that is likely to not only weather the recession but actually grow.

Article Source: ABC Article Directory

About The Author: Emma Gilbert has been writing online poker resources for several years. Recently Rakeback deals at sites such as Full Tilt Rakeback, Absolute Poker Rakeback and Ultimate Bet Rakeback where players can find news, rake races, tournaments and promotions.