New Players Only 30% of Mobile Gaming RevenuesPublished July 31, 2014 by Vlad G
Players are switching from desktop computers to smartphones and tablets.
According to a survey done by the researchers at MECN regarding the iGaming industry, mobile gaming revenues are only in small part due to new players or additional revenue. The research found that about 70% of the revenue from mobile betting comes from revenue which would have still been generated from PC/desktop players if mobile wasn’t available.
For the past few years, mobile has been seen as the main growth factor for the iGaming industry since it showed an amazing increase in revenue. However, operators have not been willing to provide more information on this subject which would allow for a more detailed analysis of the industry. The data presented by MECN shows that more than two thirds of the revenue generated from mobile platforms comes from cannibalization of already existing revenue.
The way the research was made was by surveying several experts in online gambling, including more than just a handful of senior executives which have been working at leading online gambling operators for years.
The results regarding the issue of where mobile gambling gets its revenue from seems to be divided. The most popular answer given by 56% of the experts is that the high mobile gambling revenue is actually former PC revenue. This would mean that the operators are not really getting as big a boost as it would first seem but it can be explained by the fact that smartphones and tablets are replacing desktop computers. This of course leads to more players opting to enjoy online gambling from mobile devices.
The second most popular result at 53% was that it is additional revenue generated from the fact that users spend more time playing since it is easily accessible at any point during the day.
The survey went further and the experts were asked to state a percentage of how much mobile gaming revenue is new and how much is being taken from existing products. The results were about 30% for new revenue and 70% for cannibalization.