An overview of the online gambling environment around the world. Dan Enright

1. Online Gambling Market Research 2010
June 01, 2010
Author: Dan Enright
Contact: Dan Enright Consulting
San Francisco, CA 94107
Email: info@danielmenright.com
Phone: 415-282-6792
1

2. Table of Contents
I.
Purpose
II. Methodology
III. Executive Summary
IV. Internet Usage Charts
V. UK and Europe
VI. Australia/N.Z and Asia
VII. Global Online Gambling Legal Matrix by Country
VIII. Reference Section
2

3. I. Purpose. Research current worldwide online gambling trends and legal status by country.
Conduct primary research for online gambling in the UK, Australia/N.Z. and Singapore.
Provide statistical data through secondary research on relevant regional world markets.
II. Methodology. Primary research was conducted through an online survey to residents of
the UK, Australia/New Zealand and Singapore. Secondary market research consisting of
user generated internet content was used to investigate, correlate and bring insights forward
on market facts, issues and trends.
III. Executive Summary
Online gambling was initially greeted with great enthusiasm in 1996 starting in Canada and
moving across the globe as governments sought a new revenue channel through the internet.
Within years, social pressure and unregulated controls brought many governments to
question their online gambling practices. Beginning in 2002, social ills and loss of
legal/financial controls brought the scrutiny of many governments who elected to restrict or
ban the practice. Today, with the global financial collapse, many governments are reviewing
their online gambling laws. Billions in revenue are being transferred to other economies and
governments are in need of new revenue streams. Once again, online gambling laws are
expected to be relaxed or eliminated throughout the world in 2010 and 2011. In spite of the
current global financial crises, the world's gambling market is set to grow from US$345bn in
2007 to US$433bn by 2012 according to a new report published by Global Betting &
Gaming Consultants (GBGC)1 . Global gambling revenue is estimated to pass $144 billion in
2012 after growing at an annually compounded rate of 6.5 percent per year, according to a
PricewaterhouseCoopers LLP report2 . By 2012, it is estimated that the online gambling
industry will generate over $24.4US billion in revenue worldwide 3.
In terms of primary research insights, women are more apt to influence and or control the
purchasing decision for online shopping/auctioning. More women play games online (video
games excluded) while more males tend to gamble on online. When users go online they
tend to use the popular portals to view content or shop online including but not limited the
internet powerhouses Yahoo, Google, eBay, uBid, Amazon, and others. This could be in
part due to their product offerings, content, customer experience and search features.
World internet users today are dominated by Asia, Europe and North America regions of
the world mirroring the developed nations of the world (Chart A3). For the first time in
2009, China has surpassed the United States as having the most internet users now topping
298 million (ChartA1). Given the fact that English is a top global language both as a primary
and secondary language, it remains the most often used language on the internet followed by
Chinese, Spanish and Japanese (Chart A2).
Online Gambling Market Research 2010 – con’t
1
Global Betting and Gaming consultants, Oct, 2008
Global Gaming Report. www.casinocitytimes.com
3
Online casino, Nov, 2008 http://www.onlinecasinoextra.com
2
3

4. IV. Internet Usage Charts4
A1. Top 20 Countries by user
Internet Top 20 Countries - Users
Argentina
Poland
Vietnam
Iran
Canada
Indonesia
Turkey
Mexico
Italy
Spain
S. Korea
Russia
France
UK
Germany
Brazil
India
Japan
US
China
20
20
21
23
24
25
26.5
27.4
28.4
28.6
36.8
38
40.9
43.8
55.2
67.5
81
94
227.2
298
Millions
4
Internet World Stats. www.internetworldstats.com 2009
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5. Online Gambling Market Research 2010 – con’t
A2. Top 10 Internet Languages
Top 10 Internet Languages
600
500
400
300
200
100
En
gl
i
Ch sh
in
e
Sp s e
an
Ja is h
pa
ne
s
Fr e
en
Po
rtu ch
gu
e
G se
er
m
an
Ar
ab
i
Ru c
ss
i
Ko a
re
Al
l O an
th
er
s
0
Millions of Users
A3. World Internet Users by Region
World Internet Users by Region
a/
Au
st
Ea
st
O
ce
an
i
M
id
dl
e
Af
r ic
a
Eu
ro
pe
Am
er
La
ica
t.A
m
/C
ar
ib
b
No
rth
As
ia
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
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6. Online Gambling Market Research 2010 – con’t
V. UK and Europe
There are two main approaches that were adopted by the various countries in Europe.
Traditional Western Europe which includes France, Italy, Spain, Portugal, Belgium and
Germany initially aimed to restrict or even prohibit online gambling. More liberal European
countries such as the UK, Scandinavia and the Netherlands attempted to establish a
regulated and safe online gambling environment for their citizens. The UK today is a world
leader in comprehensive online gambling regulation. See section VII for legal status of online
gambling by country.
European Parliament studies indicate the sector is growing by between eight percent and 17
percent a year in the EU, even as other industries shrink amid the economic downturn.
Online gambling trends in Europe
Europeans have always had an aversion to the American style of casino gambling. Not only
are businesses smaller, but they are more protected by the government and more heavily
based on what they call "good causes" and social control.
Recent efforts to create a single EU-wide market for online gambling were rejected by the
European Parliament earlier this year. In March 2009, the bloc's legislative body voted by a
large majority against such a move, while branding the sector a risk factor in fraud and
addiction. While a setback for an open style market, expect remaining restrictions or limits
for online gambling to diminish in 2010 and 2011 as governments look to control the market
and gain greater revenue from online entities.
Primary Research Highlights:
-
More women then men shop and play games online. This is a trend that is
similar worldwide in developed nations.
Men are more apt to gamble online then women. Men have a greater propensity
for risk with money.
Online gambling is legal/restricted/throughout Europe except for Germany.
Expect restrictions to be reduced in the coming years.
Office pools or betting pools are not widely known outside of the US.
Online purchases tend towards apparel items under $100.00.
Online purchases are made with bank cards and to a lesser extent with credit
cards. Credit cards are still not widely used in some European countries (Germany,
Italy) due to cultural norms and associated costs with using credit.
Popular online games are card, word and puzzle.
Customer support and search are top rated site features.
Product offerings, information and photos are standard features. Users tend to
use sites that are familiar, easy to use, secure, and provide the necessary data in which
to make decisions.
Google and Yahoo are most often used portals.
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7. Online Gambling Market Research 2010 – con’t
VI. Australia/N.Z and Asia
Time-honored Asian gambling has been a recreational tradition among most Asian countries
since about 900AD when the Chinese first invented playing cards. Not only do the Asians
love gambling in a wide variety of forms, skill games to common casino table games, but
they are also one of the fastest developing markets for online gambling. See section VII for
legal status of online gambling by country.
The Asia Pacific region is the world’s fastest growing gambling region with new resorts in
the Chinese enclave of Macau as well as Singapore and Thailand helping generate increases.
For the 2008 fiscal year, Macau's gaming revenue rose by 31% year on year to a record of
US$13.7 billion. Fast forward to present day and recent statistics put gaming revenues on
track to surpass last year’s result. In fact, revenues generated in September 2009 were 60%
above the comparable period a year ago. Current forecasts call for revenue growth to
increase approximately in the 20% range in 20105.
Asia is an online gambling industry hot-spot because:
- Asia is the fastest growing region in the world
- Asia is experiencing strong economic growth.
- Asians have a strong tendency to gamble.
- Middle-class Asians are emerging as a new buying market in the entertainment field.
- Many legalized gambling markets remain undeveloped.
- Australians are free to gamble online through offshore sites
Questions of legality in Asian countries
Asians have moved in and out of the online gambling industry due to the never-ending
changes made to their legal systems and gambling legislations. Despite the massive appetite
for gambling of all forms, as well as a permissive technical infrastructure, the legality of
online gambling has been declared explicitly criminal in many Asian jurisdictions and
remains entirely questionable in others. The reason behind this is a complete lack of
comprehensive gambling laws and or reference to the remote gambling industry. In
Singapore, for example, betting-houses are prohibited, yet are defined as any place used for
habitual wagering on events or contingencies despite the public ability or inability to have
access to it. The definition can be interpreted in a number of ways, and it is therefore risky
for industry professionals to base their business on this fine line.
Other hurdles blocking the expansion of the industry include cultural and political instability.
Areas such as Laos and Cambodia have significant safety issues, and various religious
constraints imposing restrictions in most countries aside from Macau and the Philippines.
5
Wall Street Strategies, Oct, 2009
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8. Online Gambling Market Research 2010 – con’t
Horse-racing and lotteries are the most commonly accepted forms of online and offline
gambling in Asian countries. Where it is permitted, online casino gambling is popular with
poker the preferred game.
In some areas, the government has been keen to preserve a monopoly control over online
gambling, such as the Philippines, who for several years was dominated by the state. Today's
emerging Asian markets include Vietnam, Myanmar and Thailand.
Online gambling trends in Asia
Online gambling in Asia has developed greatly since the first Asian online casino was
launched in 2000, yet still has a long way to go before becoming a fully-fledged developed
market. The belief held by analysis experts and industry professionals is that the restrictive
environment that has been maintained until now has only strengthened the Asians' desire to
turn to online gambling in an attempt to prove their governments and legislations ineffective
in trying to prohibit it. Similarly, offshore competition believes that eventually, jurisdictions
will be forced to legalize it. In addition, many of today's governments are trying to adopt
more flexible approaches for society, and as such Macau and the Philippines are being called
the Las Vegas of Asia.
With so many developments and so many expectations hanging on them, the pace of online
gambling growth in Asia is not expected to slow down any time soon. As with other regions
in the world, the need to control online gambling along with the need for new revenue
streams will cause governments to lower or reduce online gambling restrictions in 2010
through 2011.
Primary Research Highlights:
-
More women then men shop and play games online This is a trend that is
similar worldwide in developed nations.
Men are the prevalent online gamblers in this region. Men have a greater
propensity for risk with money.
Online gambling is restricted throughout Asia except for Macau, Philippines
and Australia. Expect governments reduce restrictions in 2010 through 2011.
The term pools is somewhat understood in Asia. In Singapore, people tend to
play games in groups or pools. Also, another contributing factor to the awareness of
the word pools is a popular gambling site called Singapore pools.
Online purchases are higher in Australia than in Europe. Due to the geographic
nature of the country, people expect to pay more for goods and shipping.
Online purchases are made with bank cards vs. credit cards. Fees tend to be
higher for purchases using credit cards than with bank cards.
Popular online games are card, word and puzzle.
Google and Yahoo are most often used portals. Users prefer sites that are
familiar, easy to use, secure and provide the necessary data in which to make
decisions.
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9. Online Gambling Market Research 2010 – con’t
VII. Global Online Gambling Legal Matrix by Country
World Wide Online Gambling Legal Situation
Legalized
Jun 23, 2008
Interactive gaming (casino games and poker) and
interactive wagering (sports betting) are legal and
regulated on the islands of Antigua and Barbuda.
Argentina
Banned
Sep 30, 2009
Argentina will be working toward legalizing and
regulating online gambling over the next few
months.
Australia
Partly Legalized
May 27, 2008
According to the Australian Interactive Gambling
Act 2001, it is illegal to provide online gaming
services to Australian citizens but it is not an
offence to actually play poker or casino games
online. Sports betting is legal with many
government licensed providers in operation.
Austria
Partly Legalized
Apr 30, 2008
State monopoly, challenged and currently reevaluated under European Union pressure.
Belize
Partly Legalized
Jun 24, 2008
Online gaming licenses may be issued to companies
operating from Belize, in line with the Gaming
Control Regulations of 2004. Sites licensed in
Belize, however, are not permitted to accept
wagers from Belize residents.
Bulgaria
Undetermined
May 01, 2008
In the process of legalizing and regulating online
gambling in the country.
Canada
Undetermined
May 08, 2008
While online gambling is not yet legal in Canada,
many Canadians play at websites located at
jurisdictions other than Canada, and even at
Kahnawake-based online casino sites, hosted by
the Mohawk First Nations of Canada.
China
Banned
Apr 30, 2008
Online gambling is banned in China, as is casino
gambling, save the mightily successful region of
Macau, where there is talk that Internet gambling
may be introduced next.
Costa Rica
Partly Legalized
May 12, 2008
It is against the law to accept bets on gambling
games in Costa Rica, but the industry has designed
ways around it. As for games, some are legal,
some not, and the legal status of the rest is
undetermined.
Cyprus
Legalized
Jun 23, 2008
Online lotteries, betting exchanges, casino gaming
and sports betting are all legal in Cyprus. The
government has proposed a stricter online
gambling law that has yet to become law.
Denmark
Partly Legalized
Apr 30, 2008
State monopoly online gambling, reconsidered by
Danish government in light of European Union
criticism.
Dominica
Legalized
Jul 01, 2008
Dominica offers licenses to online casinos and
sportsbooks. There is no tax on profits or income of
non-permanent residents. The company must
maintain a physical presence in Dominica.
Antigua &
Barbuda
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10. Dominican
Republic
Partly Legalized
Jul 02, 2008
The Dominican Republic licenses online
sportsbooks. No new license, however, has been
granted to a sportsbook operating primarily from
outside the Dominican Republic since 1996.
Finland
Legalized
May 11, 2008
Online gambling is popular in Finland, but the
country is trying to curb the casino sites through
such propositions as allowing gamblers to recoup
their losses.
France
Partly Legalized
Sep 30, 2009
The French Parliament will vote on a bill that will
open up the local online gambling market to foreign
companies in addition to its current state run
monopoly.
Germany
Undetermined
Nov 05, 2008
All 16 German state legislatures have voted to ban
online gambling, which makes it illegal, only the
case is challenged by the industry at the European
Union Court.
Gibraltar
Legalized
May 01, 2008
Gibraltar has been a major online casino center for
years, and maintains a steady position as such.
Hong Kong
Partly Legalized
Jun 29, 2008
Only the Hong Kong Jockey Club is authorized to
offer betting on lotteries, horseracing and football
online. Offshore providers are not permitted to
offer online gambling services in Hong Kong.
India
Undetermined
Sep 15, 2008
There are no laws that address online gambling in
India. There are casinos in Goa hotels, while
gambling is prohibited elsewhere, but the status of
its Internet form of gambling is not determined.
Ireland
Legalized
May 26, 2008
Online gambling is legal in Ireland. Gambling
winnings in Ireland are tax-free.
Israel
Banned
May 01, 2008
Online gambling is banned in Israel, and its
parliament has even considered censoring the
Internet to prevent access to online casino sites.
Italy
Legalized
Sep 18, 2008
Online gambling has been legalized in Italy in
September 2008, in stages, as the government
attempts to limit the hours people play online and
control the market generally speaking.
Jamaica
Legalized
Jun 30, 2008
All forms of gambling in Jamaica are regulated by
the Betting, Gaming and Lotteries Commission
(BGLC).
Japan
Banned
Mar 19, 2009
Today only horse and motor racing are legal to
gamble on in Japan, while the Lottery, Pachinko,
and Mahjong are classified as amusements, thus
legal. The government has started debating
legalizing online casinos in Japan.
Korea South
Banned
Jun 10, 2008
The law in South Korea makes it illegal for players
to gamble online.
Liechtenstein
Partly Legalized
Jun 29, 2008
Only the government-controlled lottery, PlusLOTTO,
is permitted to offer gambling services over the
internet.
Macau
Undetermined
Jun 30, 2008
The Macau Jockey Club and the Sociedade de
Loterias e Apostas Mutuas de Maceau are
authorized to offer online sports betting. There is
currently no regulatory framework for foreign
providers wishing to operate remote services from
Macau.
Malaysia
Banned
May 12, 2008
Though football sports betting is popular in
Malaysia, online gambling is illegal.
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11. Malta
Legalized
May 01, 2008
Mauritius
Legalized
Jul 01, 2008
Mexico
Legalized
May 11, 2008
Several online casinos operate in Mexico since
2002, when the government granted licenses for
these gambling operations.
Netherlands
Partly Legalized
Apr 30, 2008
State monopoly under fire by European Union
members for stifling free and fair competition.
New Zealand
Partly Legalized
Jun 10, 2008
TAB and the New Zealand Lotteries Commission are
authorized to offer lottery products and sports
betting over the internet. Other online gambling
providers, however, are prohibited from entering
the market although is not illegal for New
Zealanders to gamble with offshore providers.
Norway
Partly Legalized
Dec 17, 2008
The government banned online gambling in
December 2008, a ban that will come into force by
the end of 2009. The ban, challenged by the EU,
means only state-owned gambling services will
remain legal.
Panama
Legalized
Jun 24, 2008
Panama began to regulate electronic games of
chance and wagering activities in 2002. Internet
gaming providers can essentially operate tax-free
when accepting foreign wagers.
Philippines
Legalized
May 26, 2008
Few companies allowed to issue licenses to online
casinos based in the Philippines.
Poland
Banned
Apr 24, 2008
Internet gambling is unregulated, but government
officials announced that will change in the second
half of 2008.
Portugal
Partly Legalized
Sep 30, 2009
The EU Court of Justice has ruled that the Portugal
state-run monopoly, banning external online
gambling providers from catering to the Portuguese
players, is legal as long as it is justified in
combating crime and fraud.
Romania
Undetermined
Mar 19, 2009
Casinos, the kind you find in hotels and resorts, are
legal in the country. Online gambling, however, is
not addressed by the law in any way.
Banned
Jul 02, 2009
Online gambling is banned, along with all forms of
casino gambling, in all but 4 regions in Russia,
starting July 1, 2009.
Seychelles
Legalized
Jul 01, 2008
Seychelles offers licenses to online gaming
providers under the Interactive Gaming Act of
2003. Companies need not be based in the
Seychelles but must have a company
representative living on the island.
Singapore
Undetermined
Aug 14, 2008
Singapore laws strictly prohibit online gambling and
the advertising or promotion of gambling venues.
South Africa
Legalized
Jul 27, 2008
The National Gambling Amendment Bill was
approved by the President in July 2008 and caters
for the legalization and regulation of the South
African online gaming industry.
Spain
Legalized
May 04, 2008
Gambling online is legal in Spain, where regions
have the liberty to set their own rules regarding the
issue.
Swaziland
Partly Legalized
Jun 29, 2008
Swaziland-based sites are banned from accepting
Russian
Federation
Malta is a central location for online casino
companies.
Mauritius has been offering licenses to online
gaming operators based in the country since 1996.
11

12. wagers from South African residents. Piggs Peak
Casino, however, is authorized to offer online Rand
gambling to Swaziland, South Africa, Namibia and
Lesotho.
Sweden
Legalized
May 11, 2008
Online casino gambling is legal in Sweden, under
European Union rules and regulations, but a ban on
advertising is currently in place, though challenged.
Taiwan
Undetermined
Mar 19, 2009
A gambling ban was lifted by the government in
January, 2009 and the government has since began
formulating a plan for the future of casinos in the
country. Are online casinos next to be favorably
addressed?
Tanzania
Legalized
Jun 30, 2008
In December 1999 the Gaming Control Act was
amended, legalizing online gambling in Tasmania
and providing a licensing system for fixed-odds
wagering, sports betting, simulated games and
lotteries.
Thailand
Banned
May 04, 2008
Thailand forbids any sort of gambling on the
Internet.
Turkey
Partly Legalized
May 26, 2008
A law was passed in 2007 outlawing online
gambling in Turkey, although the partially stateowned sports betting company, IDDAA, remains
unaffected.
UK
Legalized
Apr 24, 2008
Legalized and regulated under the Gambling Act
2005.
Ukraine
Banned
Jul 02, 2009
Online gambling, along with casinos across the
country, are banned.
USA
Banned
Apr 24, 2008
Banned under the Unlawful Internet Gambling
Enforcement Act, Title VIII of the Safe Port Act,
with exceptions of fantasy sports, online lotteries,
and horse racing.
Vietnam
Undetermined
May 04, 2008
Currently, all forms of gambling save the state
lottery are illegal in Vietnam, but the country is
considering regulating an online gambling industry.
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13. Online Gambling Market Research 2010 – con’t
VIII. Reference section
Gambling/Gaming Sites
www.ida.gov.sg/.
www.sgclub.com/online_games
www.casino.co.uk/
www.gamingdirectory.co.uk
www.gamegarage.co.uk/
www.casino.co.uk
www.onlinegaming4u.co.uk
www.gamingalerts.co.uk
www.online-gambling-insider.com
www.onlinecasinoadvisory.com
www.gamblingsupertop.com
www.gamblingsupertop.com
www.alexa.com
www.hitwise.com
MarketResearch.com
www.casinocitypress.com
www.gao.gov/new.items/d0389.pdf
www.onlinecasinoreports.com/
www.encyclopedia.com/doc/1G1-158884005.html
www.casinoadvisor.com/antigua-the-worlds-first-online-gambling-jurisdiction-article.htm
www.onlinegamblingmythsandfacts.com
www.webpronews.com
www.idc.com
Other
web.worldbank.org
www.unescap.org/stat/statdata/apinfig.htm
www.adb.org/statistics/
www.internetworldstats.com/stats3.htm
www.internetworldstats.com/asia.htm
www.asiasociety.org/
www.aseansec.org
dsal.uchicago.edu
www.paulnoll.com
en.wikipedia.org
www.eustatistics.gov.uk/
www.intute.ac.uk/
www.eurunion.org/profile/facts.htm
www.internetworldstats.com/stats4.htm
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