Video Games Ads -- Arizona-based market research company In-Stat/MDR predicts that the online video games market, which grossed $1 billion in 2003, will grow to close to $4 billion by the end of 2008. The company expects the video games industry to begin taking more revenue as providers tap into the same in-game advertising opportunities that TV networks have historically enjoyed. It now costs a player about $1 per hour to play online games and about $0.13 per hour to watch TV. According to In-Stat/MDR's senior analyst Eric Mantion, "When the costs of online gaming per hour starts to approach the level of TV, you can expect people to spend a comparable amount of time gaming. The secret strength of online games will be when the volumes of people playing grow to the point where advertisers will start buying ads that will not only be interactive, but also targeted at specific demographics of players."
High-Profile Events -- The Wall Street Journal recently reported that high-profile racing and sporting events have been giving "legal and illegal gambling sites on the Internet" increasing profits and numbers of customers. The report included figures from Christiansen Capital Advisors, which estimated that online betting on the current NBA playoffs should total $85 million, compared to $74 million last year. CCA also estimated that the more than 1,800 online gambling sites around the world should clear $7.46 billion in 2004, compared to last year's $5.69 billion.
NYRA Under Watch -- Neil V. Getnick, who has been appointed by a court to supervise the New York Racing Association, is investigating whether the betting agency misused funds from the NYRA One accounts, used by hundreds of telephone bettors, to pay bills and other expenses. NYRA spokesman William Nader insists that the NYRA One accounts are now fully funded and have been for a long time, although he conceded that in the past the NYRA might have used some of the money held for bettors in the accounts. Getnick is also trying to determine whether NYRA misused $14 million of horse owners' funds that were held in purse accounts and combined with the NYRA's finances.
Phoenix Interests -- Thoroughbred Interests, Inc., a Kentucky-based company whose core business had historically been pinhooking thoroughbreds, has changed its name to Phoenix Interests Inc. to reflect its intent to broaden its focus beyond the thoroughbred industry and into gaming and entertainment sectors. The company has also changed its ticker symbol to PHXI.OB. The company's chairman, president and CEO, Jim Tilton, Jr., said, "We are very enthusiastic about repositioning the new entity into the multi-billion-dollar online gaming sector and exploring possible acquisitions in the racing, gaming and entertainment sectors. We feel it is appropriate to change our name to better reflect our broader focus. We intend to remain involved in the thoroughbred industry, but it will not be our only focus. We believe the broader focus will allow us to significantly increase our revenues and earnings."
Boss Licenses Patent -- Sweden-based I-gaming software provider Boss Media has signed a technology license agreement with Dr. Scott Lewis to use Lewis' patented optimization technology for online gaming products. Lewis said he "looks forward to working with other leading companies in the gaming industry to license this technology as the ‘gold standard’ for advanced gaming applications."
Mobile Phone Sales -- Gartner announced this week that worldwide sales for mobile phone units reached 153 million during the first quarter of 2004, prompting Gartner to raise its sales estimates for the year to more than 600 million. One hundred fifty-three million sales marks the highest first quarter ever and is 34 percent more than last year's first quarter sales mark of 114 million. Nokia is still the leading seller, with sales up 5 million year-on-year to 44.2 million, although its market share is down to 28.9 percent after being at 34.6 percent in last year's first quarter. Motorola took a 16.4 percent market share, Samsung took 12.5 percent and Siemens took 8 percent during the quarter.
Brussels Office -- The interactive Gaming, Gambling and Betting Association (iGGBA) has opened an office in Brussels to represent the remote gambling industry in discussions at the E.U. level. The association has already met with officials from the European Commission and in the future will advise the European Parliament and Council further on the Services Directive.