Could Internet Bingo Save the US Newspaper Industry?

Posted on May 11th, 2009

It is no secret that the US newspaper industry is in serious trouble. The internet has drastically changed the way people get their news and subscription rates have been falling. Several major US papers have filed for bankruptcy and are laying off employees. US newspapers are looking for a solution but billionaire publisher Mort Zuckerman has come up with a unique solution - internet bingo.

The tech savvy 72 year old told a group gathered to celebrate Time’s 100th gala that internet bingo could save the newspaper industry. When some questioned his judgment Zuckerman stated, “The newspapers in England are supported almost exclusively by the profitability of running bingo games on their websites. It attracts an enormous audience. But here, you’re not allowed to do it. The gambling interests and Vegas and other places like that have managed to block any other gambling on the Internet. But London, that’s what they do. The Sun makes millions of dollars off of their bingo games.”

UK newspaper the Sun provides internet bingo on their website and internet bingo is the only profitable part of their business. The Sun is not alone and UK publisher Independent News and Media operates several top UK newspapers owns shares of a company that provides casino software to third parties including UK newspaper giant Trinity Mirror. Many UK newspapers offer their readers internet bingo in an attempt to remain profitable.

Although many remain skeptical internet bingo is helping many UK newspapers to remain profitable. Internet bingo is wildly popular in the UK and has grown immensely in the last two years. In 2008 alone is has been estimated that internet bingo has experienced an 80% increase in the number of players online. The only roadblock to American newspaper adopting internet bingo as a profit maker is the Unlawful Internet Gambling Enforcement Act of 2006 which prohibits financial institutions from accepting gambling related transactions.

Should internet gaming become legal once again in the US some newspapers may follow the lead of their UK counterparts and offer readers sponsored internet bingo. Most likely American papers would use the same marketing strategies of the UK internet bingo industry. Bigger bingo bonuses, more free bingo bonuses, bigger jackpots and more original games have all proved successful marketing strategies in the UK.

Recently Congressman Barney Frank has introduced a bill that would effectively tax and regulate internet gambling including internet bingo. With that roadblock out of the way US newspapers could find themselves in a position to offer internet bingo to their readers and make a profit at the same time.