Gaming Companies Recession Proof
It would appear that despite the recession the internet gambling industry is doing very well. Several internet gaming companies have reported an increase in revenues and the number of players participating in internet gambling games such as poker, bingo and other casino games. 888 Holdings recently reported that during 2011 revenues increased by 26% compared with 2010. The gaming firm which operates several online gaming sites posted revenues of $331 million compared to $262 million in 2010. The company also said that they expect the strong performance to continue during the first quarter of 2012. 888’s deputy chairman Brian Mattingley told reporters “We are delighted with 888′s strong performance over the last year and in particular Q4. Current trading in January continues to be strong. We believe our focused strategy will continue to drive growth in 2012.”
At the end of 2011 888 reported that it had 10.6 million customer accounts, a 22% year on year increase. The gaming firm has suggested that the recession has led to an increasing number of players to stay home and gamble on the internet. 888 Holdings is not the only gaming company posting impressive figures. Rank Group, which operates Mecca bingo and Grosvenor casinos, said that a recent marketing campaign targeting younger players has paid off. Players in the 25 to 35 age bracket accounted for the largest share of customer growth.
Rank reported that the number of players at the company’s 103 Mecca bingo halls increased by 50,000 in 2011. Currently about 770,000 players attend games at Mecca bingo halls. Grosvenor casinos saw an increase of 61,000 for a total of 762,000 players. Rank’s chief executive Ian Burke insisted that there was more opportunity in the youth market especially for bingo where 65% of all players are over 35. Rank is currently in talks with Gala Coral to acquire 24 Gala casinos. Gala wants to shed its casino operations and focus on bingo games and sports betting.
There could be even more good news in store for Rank. The company may be able to recover £275 million in taxes after a ruling by the European Court of Justice said that Rank overpaid VAT taxes. Recent Rank’s Spanish operations suffered a setback after the imposition of a national smoking ban which caused attendance to drop at Rank’s casinos and bingo games. When the national smoking ban was imposed in the UK many gaming companies saw a drop in revenues but since then most gaming companies have made a spectacular comeback.
