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2009 eGaming Value – The First Look

08-Feb-2010

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As we move into the preliminary results season H2 have now finalised our assessment of the eGaming sector in 2009. 

At this stage H2 have integrated the first three quarter’s actual results, guidance for Q4, our proprietary traffic assessment for the whole year, our end of year assessment of the number of operational eGaming sites and finalised the actual exchange rates for the year.

Global eGaming Gross Gaming Yield 1998 to 2012e – (US$bn)

Source: H2 Gambling Capital, February 2010

2009 ended with a total of 2,554 eGaming sites in operation across the world, up from 2,500 at the end of Q3. This compares to 2,404 at the end of 2008. The number of eGaming websites had been in almost constant decline until Q2 2008 when it reached a low of 2,368. Since this time there has been an increase in the number of sites in every single quarter.

The total value of the global eGaming market rose from US$23.5bn in 2008 to US$26.6bn in 2009. H2 now believe that its value will increased to US$36.5bn by 2012 suggesting a CAGR over the coming three years of 11.1%. This equated to 7.9% of the total value of all gambling during the year.

Of this, the contribution from casino, poker, bingo and commercial sports betting comprised US$5.8bn, US$4.9bn, US$1.9bn and US$6.1bn respectively.  These figures do not include state lotteries or horserace-betting monopolies, which recorded a gross gaming, yield of US$2.5bn and US$4.3bn from their respective eGaming activities during 2009.

It should be remembered that although the Japanese Racing Association’s interactive business contracted by 1.1% in 2009 it was still worth just under US$3.2bn in terms of gross win or just over 30% of the total global interactive sports betting business during the year.

Europe became the largest regional market in eGaming during 2007, the year after the introduction of the UIGEA. During 2009 the retained this position accounting for just under 45% of the total value of the global market. Going forward H2 expect deregulation to ensure that this position will be sustained over the coming few years with the value of the European market reaching US$18bn by 2012.

It should be noted that although H2 have a comprehensive model in place for a regulated United States market place no onshore regulated eGaming activity has been included within our core forecasts with the exception of the development of the current regulated activities, i.e. horserace betting and a handful of state lottery subscription progammes.

Global eGaming Gross Gaming Yield 2009p

Source: H2 Gambling Capital, February 2010

Following the release of all of the preliminary results (usually early April), H2 will publish our final assessment of the value of the eGaming sector in 2009

Please note that all data remains the property of H2 Gambling Capital and must not be reproduced without permission. Any organisation wishing to utlise any of H2’s data should contact data@h2gc.com

H2’s eGaming Data/Reports and Internet Poker Service – Download further details

About H2

H2 Gambling Capital is the leading supplier of data and market intelligence regarding the global gambling industry. Regarded, as the ’Industry Standard’ for eGaming – H2 is by far the most quoted source of data in analysts’ notes/company reports

Over the past decade H2’s team has supplied data to or worked with over 500 organisations including, operators, suppliers, regulators, professional services companies, governments, lotteries, lobby groups and trade associations.

H2’s data has been quoted in much of the media including, the BBC, the New York Times, the Financial Times, the New Yorker, CNBC, Bloomberg, Reuters and Time Magazine. H2 is eGaming Review’s official data partner and a partner firm of Gerson Lehrman Group.

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