A recent study by Datamonitor estimates that the U.S. online gambling biz will reach $5.5 billion dollars within five years. Additionally, it suggests that the western European market could equal U.S. revenue by 2004.
"Western Europe is already a large market for traditional gambling, the success of online gambling will be a logical evolution for this industry," said Frederic Diot, Datamonitor analyst. Countries in western Europe include the United Kingdom, France, Germany, Spain, Italy and Sweden. Many of these governments are entering the net gambling market via online lotteries. Plus, many land-based gambling operations have indicated a desire to
go online, said the report.
Datamonitor interviewed industry players such as Hilton, GTECH, Starnet Communications and associations like the Gaming Board of Great Britain for information. Additional data came from investment banks reports, traditional and online gambling operators company information and third-
party data.
Datamonitor suggest that online gaming (as opposed to gambling) will split into two markets: hard-core gamers who'll engage in online duels through character-driven and often violent games while casual online gamers will gradually become the larger market playing classic games, trivia and quizzes for casual entertainment. The influx of players will generate staggering revues, which Datamonitor estimates will reach $4.9 billion by 2004.
The report, "Online games and gambling in Europe and the US, 1999-2004, 3rd edition" is available from Datamonitor through their website, www.datamonitor.com. The company's technology practice area is one of the largest IT and communications analyst firms in Europe, specializing in tracking market and company dynamics in IT, networks, interactive services, telecommunications and the Internet.