Internet Bingo, the Last Bull Market?

Posted on December 17th, 2008

Despite the economy in the UK, or perhaps because of it, internet bingo generates a significant amount of revenue in the UK. These days people are searching for inexpensive entertainment and internet bingo is poised to fill that need. Because most internet bingo providers are reluctant to share figures with the public it is difficult to determine how much the internet bingo market in the UK is worth.

In 2008 there are about 250 internet bingo websites competing for customers compared with 20 internet bingo websites operating in 2004. Many sites covering the internet bingo business have tries to estimate the value of the UK market without success.

Now there may be a reliable indicator that will help to estimate the size of the UK internet bingo market with some accuracy. In a recent press release 888 Holdings Gigi Levy, CEO of the group, stated that during the first nine months of 2008 the group which supplies software to many internet bingo sites such as Foxy Bingo, Wink Bingo and others made approximately 17.7 million Pounds (about $27 million USD).

Mr. Levy stated that 888 Holdings has 3% of the UK internet bingo market. If the market does not fluctuate then 888 Holdings will have revenues of 23.6 million pounds for the year. If 888 Holdings controls 3% of the UK internet bingo market that works out to about 786 pounds per annum for the entire internet bingo market in the UK. (Over $1 billion USD) Assuming that operating costs are 40% internet bingo operators are making approximately 500 million pounds per year. ($773 million USD)

It is no secret that UK bingo players are flocking to online bingo sites. Internet bingo websites are using a variety of successful marketing techniques and have attracted thousands of new players. Most bingo websites offer players several kinds of bingo bonuses. The most common bonuses are a bingo sign up bonus where the player receives a certain amount of money or credit for signing up and a bingo deposit bonus which offers to add a certain percentage to a player’s deposit. Most bingo sites report that bonuses have been instrumental in attracting new players. .

In the past two years internet bingo has seen a great increase in new internet bingo players due to smoking bans and the desire for inexpensive entertainment. It would appear that the internet bingo market is one of the few bullish markets left.