Credit Crunch Hits Casinos WorldwidePublished December 13, 2008 by OCR Editor
While gaming industry heads thought themselves to be recession proof - a top gaming analyst says otherwise. So what happened?
Top gaming analyst Sherman Bradley from the Online Casino Advisory, a trusted name in the industry, reported recently that online casinos are not as recession proof as the gaming industry previously thought they would be.
In a month long study which Bradley conducted using the unofficial statistics of certain casinos, and interviewing some operators themselves, he claims that many offshore gambling companies are struggling to meet their quarterly expectation due to the worldwide financial crisis.
Where did the money go?
Industry heads thought that players who normally spent money to travel to the brick and mortar casinos would realize the benefit of saving a considerable amount by logging in from home and playing online.
However, it has been shown that new player deposits, recurring bets as well as revenue from existing players are down. Some critics believe this trend to be because of the UIGEA fallout and the big Microgaming corporation leaving the U.S. Market
This, Bradley says are not the main reasons and mentions that while people are still playing, it is not as often or with as much money as before the financial crunch took hold.
Companies report that they are still seeing deposits but that players are simply cutting back or playing in the fun or free modes offered to get their daily fixes.
I'll raise you...or...maybe not?
Recession proof? Hmm...looks like not even hardcore players are willing to take a chance anymore.