Consolidation in the Online Bingo Industry

In the UK internet bingo is the fastest growing sector of the online gaming industry. During the last five years online bingo has grown into a $2 billion dollar a year industry. Many experts expect the growth to continue for the next two years but boom cycles do not last forever in any industry. In the meantime new bingo sites are launched regularly to take advantage of growth in the industry. Competition in the industry is intense and many bingo sites have disappeared. Many experts are predicting that during the next few years bingo sites will experience some of the problems experienced by the online poker sector.

Just like online bingo, poker was hard hit by anti online gambling laws passed in the United States. After the passage of anti gambling laws the whole online gaming industry was thrown into chaos. Stocks in publicly traded internet gaming companies took a hit in global stock markets and thousands were thrown out of work. Many analysts say that the difficulties experienced by online poker will hit the online bingo industry in the near future. Five years ago there were dozens of poker networks and hundreds of internet poker rooms.

During the last few years there have been a lot of mergers and consolidations in the online poker industry and today there are just a few poker networks left. Consolidations and mergers have made the industry much stronger and many believe that the same process will eventually benefit the internet bingo industry. Even though online poker has declined the sector is well established and most poker sites can expect a stable future. Once the United States re enters the online gaming market many experts say that new sites will appear. Currently there is an effort in the US congress to legalize online gaming. The effort is being led by Congressman Barney Frank. During the last legislative session the US congress failed to pass any gaming legislation and most expect an uphill battle for Frank’s bill.

Most in the gaming industry believe that in the next five years there will be extensive consolidation in the bingo sector. The number of bingo sites will probably be greatly reduced leaving several large bingo sites that will control most of the bingo market. For every boom there is a bust and there will come a time when the bingo market will be saturated and consolidation will be necessary.

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