Research organisation predicts that economic recession will see total incomes for UK operators drop seven percent year-on-year to £247 million.
Tuesday 24th November 2009
Market research organisation Mintel has released a new report alleging that the UK’s online poker business has stagnated due in large part to the current economic recession.
Mintel revealed that online poker in the UK grew by an astounding 72 percent between 2004 and 2007 but that this figure had dropped to zero for 2008 with total incomes of £265 million.
The report predicted that total incomes for UK operators this year would reach £247 million, a drop of seven percent year-on-year, while globally growth would hit twelve percent with overall earnings of £3.7 billion by 2012. Mintel revealed that the easing of anti-gambling legislation in Europe and the USA could assist worldwide growth.
According to its research, Mintel revealed that a large proportion of UK-based players are taking part at the tables less often with the average annual spend per player dropping from £345 in 2007 to £281 this year.
“Around a third of poker players now play less often or for lower stakes because of the economic downturn,” said Matt King, Senior Leisure Analyst for Mintel.
“Rakeback promotions, for one thing, are minimising margins and this shows the emphasis is on customer numbers, not the profit generated per customer. Lack of time is another factor impacting on play possibly suggesting work pressures in the current recession are having a toll on players' free time.”
