H2 NEWS
The H2 eGambling Report Q3/Q4 2008 is Published
10-Jan-2009
News Index Page
H2 have launched their combined 2008 Q3/Q4 eGambling Dataset and 25-page note. The later includes all of the usual 20,000+ industry data points. The dataset includes H2’s preliminary 2008 valuation of the global interactive gambling market with splits by all of the major product groups, 50 national estimates by product, quarterly data for all major product groups (online poker monthly) and forecasts to 2012.
Summary conclusions include
H2’s preliminary 2008 total value (gross win – stakes less prizes but including bonuses) for the eGaming industry is US$19.6bn including state. Please note H2 will publish their final 2008 industry numbers during early April following the reconciliation of the their model with all of the public companies’ preliminary results;
Online Gambling Gross Win 1998 to 2012e (US$bn)
Source: H2 Gambling Capital
The interactive gaming sector will not be completely immune to the economic downturn but opportunities continue to out weigh threats;
In the longer term a recession should strengthen eGambling’s hand as gambling provides governments with one of the few ways to raise taxes and stimulate economic activity simultaneously;
The US market is likely to open up for gaming only but not until at least 2013-15 – when it does the first ten years could generate nearly US$130bn in gross win;
US forecasts downgraded for 2009 as a result of the implementation of UIGEA by December this year;
For the time being the ‘Liquidity Pull’ Continues with PokerStars and FullTilt accounting for just 50% of the real money online poker market. Still poker ends 2008 on a high with December 2008 proving a record month;
Online poker Growth looks set to continue into January as H2 launch our Online Poker Volume Index. The index reached 3,680 at the close of 2008 but is not expected to be over the 4,000 at the end of 2009 given the current headwinds;
H2 Online Poker Volume Index 2003 to 2008

Source: H2 Gambling Capital
In addition to outlining all of the major events of the quarter, the note covers Italy, Austria, the ultimate percentage of gambling business that will be interactive, serious gamblers vs the casual player, open platforms and B2B.
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