Online Casinos Set For Downturn
After the shares skyrocketed this summer witnessed by many online casinos, it now seems the industry has to deal with the reality of stock flotations. Like all sectors within the market place, the online casino industry will see financial highs and lows. Recent speculation about the IPO’s of several well known online casinos and software developers have been the source of much reporting by international media regarding the online casino industry. While stock values may have depreciated, it seems that player support is holding steady throughout the sector and there has been a steady growth in revenues at one online casino that reported a 32% increase in profits. This seems to indicate that despite speculation on the value of the company stock, the nucleus of online gambling remains profitable.
Studies indicate that online casino poker is perhaps the most profitable game online. The increased popularity of poker over the last several years has no doubt been a key factor in it’s profitability of online casinos. From televised celebrity poker showdowns, to multi-million dollar high stakes tournaments, it seems that everyone wants a piece of the action. One online casino is predicting that poker gaming could results in a ten fold business growth within the next three years.
But the addition of more and more new online casino operators into the market as well as the difficulty in holding on to old players may be the cause for some of the older, established online casinos to lose their grip of the market. Customer retention appears to be the latest source of concern amid some of the bigger online casino operators. Drastic moves have been made in recent days, such as the cutting off of casino skins sites, in order to hang on to existing customers. This has also resulted in the increased competition among the gambling sites.
Google News - 2005-10-24 11:44:44