H2 Interactive Gambling Report Commisioned by Odobo
Posted on 28/03/2013 in General News
Real-money gambling emerges as massive global revenue opportunity for games developers according to new report by H2 Gambling Capital and Odobo
San Francisco 28 March 2013 – ‘Opportunities for game developers in regulated real-money online gambling’, a new report commissioned by Odobo and researched by H2 Gambling Capital outlines the size of the global regulated online gambling market and provides new data to expose the scale of the opportunity for games development studios to tap into the most lucrative sector in games monetization.
Regulated real-money online gambling (RMG), excluding lottery and skill-based games, already generates almost $30bn in gross win internationally, with the UK and Europe accounting for 54% of the market. Recent legislation passed in several US states supports licensing for online gambling and, according to H2, means that by 2017 the US may already represent up to 30% of the global online gaming market and generate gross win just over $7.4bn, this will continue to grow annually.
Revenues in real-money online gambling are driven by player activity on digital games content with the developers of the games earning royalties of 7-15% of the gaming revenue generated by play of their games. Unlike social and casual gaming (where revenues are generated from a small subset of players), the vast majority of customers of RMG operators are paying revenue-generating players. This royalty alone results in Average Revenues Per User (ARPUs) for the game developer of 30-40 times higher than social gaming.
When game developers are also active in marketing their games and referring new players to the regulated online casino operators they gain access to additional revenues in the form of affiliate commissions of 25-30% of the player lifetime value. With Odobo, developers earn this additional income not only when referred player play the developer’s game(s), but on all gaming activity for the lifetime of the player. This amounts to an additional $350-$500 in developer revenue per player on top of game-play royalties. The combination of the game royalties and affiliate commissions can push the monthly ARPUs in excess of $35 per player.
H2 Gambling Capital also estimates the pace of convergence between real-money gambling and social casino gambling which, when combined, generated just over $30bn in 2012 and are forecast to grow to over $40bn by 2015. For social casino game developers and operators, additional revenues from RMG can fuel multi-channel marketing strategies providing a lift to all forms of monetization and helping the developers active in RMG to have an economical competitive advantage over other developers who are not active in this sector.
Odobo has streamlined the process by which games content for the RMG industry is created, licensed, distributed, marketed and monetized through a growing network of the largest established regulated gambling operators and their millions of funded-account customers. The Odobo Developer Program provides the GDK framework for the production of compliant and certified HTML5 games content and the Odobo Marketplace simplifies distribution of the games content to the industry. The consumer-facing Odobo Play portal provides an optimized marketing channel for the game developer to take an active role in marketing the availability of RMG versions of their games with participating operators in regulated markets.
The new revenue opportunity in online real-money gambling is too big for companies in the games business to overlook. The H2 Gambling Capital report is free from Odobo. Visit the company blog at http://odobo.tumblr.com/ to download or email firstname.lastname@example.org for your copy.
For further information regarding H2's leading gambling data please contact email@example.com