New Report Sees Surge in Mobile Gaming Revenues

New Report Sees Surge in Mobile Gaming Revenues


Mobile Gaming in the UK has more than doubled in 2011, climbing a steep 115% from 19 million pounds to 41 million, according to a new report by IHS iSuppli Market Intelligence, a premier source for business intelligence.
That’s quite a climb, no doubt, but it seems like this is just a first taste of what we can expect in the coming years.

The report finds that the key factors helping mobile gaming grow at such an astounding pace are the wider availability of smartphones; faster network speeds; and increasing advertising spend by the big boy betting brands over the year.

With the 2005 UK gambling act coming into full force in 2007, spending on advertising by gambling companies has been growing regularly, but 2010 saw a big increase in ad spending on mobile gaming compared to other forms of ‘remote gambling’ as the law defines mobile, online and TV wagering.

remote gamgling penetrations

remote gambling penetration

It’s no wonder with these increased revenues, that leading gaming firms have been ramping up on mobile bingo and gaming ad spend. The iSupply report mentions leading names such as Paddy Power, Ladbrokes and Betfair have all released big ad campaigns dedicated to mobile gambling. Top UK gambling name – Rank Group’s subsidiary Blue Square said that 20% of its income for the year was from mobile – that’s a 300% jump.

And guess what – all these supporting trends are just growing, and quickly at that. Granted, network speeds have gone up but 4g is just around the corner and that’s a whole new story as far as broadband speeds. Smartphones have been around for a while now but in 2011 they have just about become ubiquitous; and as for advertising spend on mobile bingo and gaming, you just have to turn on your tube to see that 2011 will be another breakthrough year in what is still a nascent market.

We expect a lot more pounds to be poured into mobile bingo sites and apps, as well as all forms of mobile phone wagering, as the leading players race to gain a strong footing in this new field.

And the best part of it is, as far as gaming operators are concerned, is that mobile is showing itself as a great supplement to internet gaming, and not as an alternative, helping drive income gains and increases average revenues per user (or ARPU – the holy grail of any new media firm).

Whether users prefer mobile or Internet gaming is yet to be determined, but either way, the gambling brands stand to make a huge profit.