Online Bingo Slump? Decline in New Site LaunchesPublished June 6, 2013 by OCR Editor
Bananas for Bingo, an online bingo resource, reports a significant drop in the number of new bingo sites being launched.
Is online bingo in decline? Research shows a slump in new bingo business activity. Bananas for Bingo, a leading online bingo resource, reports that the average number of new bingo sites being launched has dropped to its lowest level in two years. Why the drop in websites? The reasons may not be as obvious as first expected.
New product launches are a key economic indicator used by many analysts to evaluate the health of a market. According to data collected by Bananas For Bingo over the past three years, autumn and early winter (September to December) are generally the busiest months for bingo site launches. However, 2012 figures indicate a distinctive drop in these numbers.
- In the 12 months to January 2012, 54 sites were launched - an average of 4.5 per month.
- By October 2012 this figure had fallen to under 3 the lowest level since September 2010.
- Only 11 bingo game sites were launched between September and November this year compared with 16 in 2011, a fall of over 30%.
- Summer 2012 was particularly slow with only three sites launched between June and August. This compares to nine in the same period of 2011-a collapse of over 60%.
The findings emphasize the phenomenal growth in new site launches during 2010 and 2011 when the online bingo industry appeared to be in a "boom stage." New operators rushed into the field and existing operators regularly launched new brands, each aiming to appeal to different segments and to create new brand images and user experiences.
The picture is less rosy, as new product launches are growing fewer and father between. This could impact the customer's experience - online bingo fans may not enjoy the same fervent pace of new options and offerings in 2013.
Why the Shift away from Bingo?
It could be that the drop in new business activity may suggest the online bingo industry is simply moving from the expansion and market saturation phases of its business cycle into the contraction phase. However, there are other possible explanations for this drop.
Bananas For Bingo also points out that the field could be changing due to the technological landscape in which online bingo operates. Both users and operators are moving from computer-based gaming to mobile and tablet gaming. In addition, new operators like QSB Gaming have recently launched high quality products (e.g. Cheers Bingo) while the Dragonfish (Loadsa Bingo, Smooch Bingo) and Cozy Games networks remain anything but quiet. However, seasoned bingo players remain cautiously optimistic, opting to wait for the New Year figures before jumping to conclusions, noting that chat rooms are busy as ever.