Online gambling to top $10bn

Online gambling to top $10bn Source: Fin24.co.za Washington - Worldwide online gambling revenues will top $10bn in 2005 for operators of virtual casinos and bookmaking, a market research firm said on Tuesday. The report by the firm eMarketer said the $10bn represents only the "vig," or house cut - which means there was likely well over $200bn in play over the year. "Fuelled by a poker craze, the growth of broadband, and television coverage, online gambling is quickly moving to the mainstream," says Ben Macklin, analyst at eMarketer. Online gambling is considered by US authorities to be illegal, but that does not prevent many Americans from visiting internet gaming sites, which are mainly based offshore. The eMarketer report said various research shows 20 million to 30 million US internet users visited gambling or sweepstakes sites in February 2005, representing about 15% to 18% of all US internet users. "US consumer spending on gambling is roughly 20 times the amount they spend on digital music downloads," the report noted. In Europe, the report found 14 million internet users visited gambling or sweepstake sites, with Germany having the largest number of users. As a percentage of internet users, however, France and Sweden top the list. Macklin said TV coverage of poker tournaments, and the $2.5m win of American online player Chris Moneymaker in the 2003 World Series of Poker, gave the sector a lift. Macklin said: "After phenomenal growth during 2003 and 2004, particularly from online poker, the online gambling sector is slowing, but that does not signal the demise of the sector. "For as long as there is gambling, there will be online gambling, and whether it is legal or not is irrelevant."