Social gambling to push mobile wagers to $100bn annually by 2017
A new report from Juniper Research has found that a surge in social gambling activity, along with the introduction of intrastate casino and lottery services in the US, will help push global annual wager via mobile handsets and tablets to $100 billion by 2017, up from just under $20 billion last year.
The report, 'Mobile Gambling: Casinos, Lotteries & Betting 2012-2017,' highlighted the dramatic increase in wager that had occurred in UK-facing sportsbooks over the past year, with several already seeing around 20% of online wager occurring via mobile devices.
However, the report noted that while sports betting currently accounted for the largest share of mobile gambling, it would be overhauled by casino gaming within five years. According to report author Dr Windsor Holden, "Social gaming companies such as Zynga are seeking to move from play-for-fun casino games into real money gambling, while pureplay mobile casinos including Probability have begun to integrate with the Facebook mobile platform. In this way, consumers will be able to use their social networks to register for casino games, substantially increasing both the reach and engagement of such services."
Landmark US verdict to boost market:
Furthermore, the report observed that the US remote gambling market had effectively been reopened following the 2011 deliberation of the US Department of Justice that the country's 1961 Wire Act applied only to sporting events. In the wake of this verdict, several states have either enacted legislation specifically permitting such services or - as in the case of Nevada - have begun a licensing procedure.
Other key findings from the report include:
While mobile is currently viewed primarily as a retentive tool to increase brand value, the increasing number of mobile-only customers means it will gradually become an acquisitive channel. The increasing deployment of mobile wallets should offer a viable alternative to credit cards as a payment mechanism for mGamblers.