Online Gambling Looks A Good Business Bet
By James Tapsfield, PA
Britons have always been fond of a flutter – whether it be on sporting events such as the Grand National and FA Cup Final, or the outcome of the general election.
But it seems the internet age is pushing our love for gambling to a whole new level.
Every day more Brits are logging on to websites offering the opportunity to try your luck, and their eagerness to take a chance has made online gambling one of the fastest-growing industries in the world.
PartyGaming, whose PartyPoker.com online poker game room has amassed more than one million users since 2001, announced plans for a flotation on the London Stock Exchange today that would value the company at up to US 10 billion (£5.5 billion).
Analysts estimate that revenues from the industry globally have doubled over the past three years to US 9 billion (£5 billion). Some predict that within a decade it could be worth US 125 billion (£69 billion).
Figures like that are sure to put a smile on the face of management and investors, but not everyone is convinced that the explosion in internet gambling is a good thing.
A spokesman for help group Gamblers Anonymous said it was beginning to receive calls from people who had become addicted to betting over the web.
He said: “We’re starting to come across people who have got hooked online. It’s not a high proportion of the calls we get currently, but it is something we’ve noticed as being on the increase.”
Although GA does not think online gambling is an intrinsically bad thing, it does raise serious concerns for those who might be vulnerable to addiction, according to the spokesman.
“The internet removes some of the obstacles that society puts in front of people to stop them doing things.
“If you’re a blue-collar worker and live in a local community you’re unlikely to go into a bookies and bang £500 on a horse.
“Other people would see you and it might not be the way you’d want to be viewed.
“But if you can do it in your own home it’s much easier. I think the internet makes it much easier for people to start gambling.”
Mark Griffiths, Professor of Gambling Studies at Nottingham Trent University, agrees.
He says: “Remote forms of gambling, such as online, interactive TV and over mobile phones, do present challenges.
“It’s very convenient – if you have the time you can do it all day, every day, whereas you couldn’t do that in the bookies.”
Another problem is the lack of “gatekeepers”, according to Prof Griffiths.
“If I was drunk or a minor and walked into a casino they would not let me gamble. But there aren’t those checks online.”
He added that people were often tempted to bet more because they were playing with “virtual money” rather than hard cash.
However, Wes Himes from the Interactive Gaming Gambling and Betting Association – which speaks on behalf of the trade – said companies took their responsibilities to players seriously.
“People use credit cards every day, and that is virtual money.
“All our members take measures to monitor their sites, and alert people to how long they have played and how much they have spent.
“But obviously people need to apply their own personal restraint.”
According to Mr Himes, the huge growth of the online betting sectors is mainly due to new customers being brought in rather than people moving over from the traditional industry.
“From the evidence we’ve seen the whole pie seems to be getting bigger. If you look at the UK the market’s been growing steadily over the last few years.
“We haven’t seen a shift of people’s money from the old industry to the new.”
Some of the most popular sites feature poker games and betting exchanges where people can cut out the bookies by gambling directly with fellow punters. Online accounts with high-street bookmakers have also proved extremely popular.
One of the most striking aspects about the rise of remote gambling is the way it has attracted women.
Prof Griffiths said he thought companies tended to overestimate the number of women using sites, but there was no doubt that far more were gambling over the web than had ever used the traditional industry.
“The internet is a gender-neutral environment.
“Most women don’t want to go into betting shops, which are male dominated. But in online poker games women can pretend to be men and men can pretend to be women.
“If you’re a housewife and you’ve got a few hours in the afternoon while your child’s asleep, it fits into that kind of schedule.”
Mr Himes said that in some online gambling areas women made up 50 per cent of users.
“Women tend to go with games they are familiar with such as bingo, or easy games such as blackjack,” he said.
“The internet has a whole different demographic profile.”
The gambling industry has staked a great deal on the web’s ability to bring in new customers willing to take a chance.
But with revenues already increasing exponentially, and more households connecting to the internet every day, it looks like the future of online gambling could be the only genuine dead cert out there.
Britons have always been fond of a flutter – whether it be on sporting events such as the Grand National and FA Cup Final, or the outcome of the general election.
But it seems the internet age is pushing our love for gambling to a whole new level.
Every day more Brits are logging on to websites offering the opportunity to try your luck, and their eagerness to take a chance has made online gambling one of the fastest-growing industries in the world.
PartyGaming, whose PartyPoker.com online poker game room has amassed more than one million users since 2001, announced plans for a flotation on the London Stock Exchange today that would value the company at up to US 10 billion (£5.5 billion).
Analysts estimate that revenues from the industry globally have doubled over the past three years to US 9 billion (£5 billion). Some predict that within a decade it could be worth US 125 billion (£69 billion).
Figures like that are sure to put a smile on the face of management and investors, but not everyone is convinced that the explosion in internet gambling is a good thing.
A spokesman for help group Gamblers Anonymous said it was beginning to receive calls from people who had become addicted to betting over the web.
He said: “We’re starting to come across people who have got hooked online. It’s not a high proportion of the calls we get currently, but it is something we’ve noticed as being on the increase.”
Although GA does not think online gambling is an intrinsically bad thing, it does raise serious concerns for those who might be vulnerable to addiction, according to the spokesman.
“The internet removes some of the obstacles that society puts in front of people to stop them doing things.
“If you’re a blue-collar worker and live in a local community you’re unlikely to go into a bookies and bang £500 on a horse.
“Other people would see you and it might not be the way you’d want to be viewed.
“But if you can do it in your own home it’s much easier. I think the internet makes it much easier for people to start gambling.”
Mark Griffiths, Professor of Gambling Studies at Nottingham Trent University, agrees.
He says: “Remote forms of gambling, such as online, interactive TV and over mobile phones, do present challenges.
“It’s very convenient – if you have the time you can do it all day, every day, whereas you couldn’t do that in the bookies.”
Another problem is the lack of “gatekeepers”, according to Prof Griffiths.
“If I was drunk or a minor and walked into a casino they would not let me gamble. But there aren’t those checks online.”
He added that people were often tempted to bet more because they were playing with “virtual money” rather than hard cash.
However, Wes Himes from the Interactive Gaming Gambling and Betting Association – which speaks on behalf of the trade – said companies took their responsibilities to players seriously.
“People use credit cards every day, and that is virtual money.
“All our members take measures to monitor their sites, and alert people to how long they have played and how much they have spent.
“But obviously people need to apply their own personal restraint.”
According to Mr Himes, the huge growth of the online betting sectors is mainly due to new customers being brought in rather than people moving over from the traditional industry.
“From the evidence we’ve seen the whole pie seems to be getting bigger. If you look at the UK the market’s been growing steadily over the last few years.
“We haven’t seen a shift of people’s money from the old industry to the new.”
Some of the most popular sites feature poker games and betting exchanges where people can cut out the bookies by gambling directly with fellow punters. Online accounts with high-street bookmakers have also proved extremely popular.
One of the most striking aspects about the rise of remote gambling is the way it has attracted women.
Prof Griffiths said he thought companies tended to overestimate the number of women using sites, but there was no doubt that far more were gambling over the web than had ever used the traditional industry.
“The internet is a gender-neutral environment.
“Most women don’t want to go into betting shops, which are male dominated. But in online poker games women can pretend to be men and men can pretend to be women.
“If you’re a housewife and you’ve got a few hours in the afternoon while your child’s asleep, it fits into that kind of schedule.”
Mr Himes said that in some online gambling areas women made up 50 per cent of users.
“Women tend to go with games they are familiar with such as bingo, or easy games such as blackjack,” he said.
“The internet has a whole different demographic profile.”
The gambling industry has staked a great deal on the web’s ability to bring in new customers willing to take a chance.
But with revenues already increasing exponentially, and more households connecting to the internet every day, it looks like the future of online gambling could be the only genuine dead cert out there.
posted by Scott Fish at 4:11 PM
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