As we count down to the New Year I thought it might be appropriate to have a look at what went on in 2007 and see if there is anything which might point to how things are going to unfold in the world of online bingo in 2008.
Probably the biggest influence on free online bingo during 2007 was the protracted effects of the US’ Unlawful Internet Gambling Enforcement Act (UIGEA) which saw many UK and European-based online bingo halls crippled by UIGEA’s disruption of financial transactions with US players. Apart from turning non-US online gaming operators into virtual criminal enterprises, the online gaming industry had to sit by and watch US authorities take retroactive measures being against online gaming executives such as arrest and capture and extensive fining.
In the most extreme case, online e-wallet Neteller was almost destroyed by the US Department of Justice’s attempts to prosecute them for taking money from US players before UIGEA even came into effect. Happily, the company seems to have weathered the storm and is now pursuing a diversified rebuilding strategy aimed at growing non-US markets.
In essence, the arrival of UIGEA has forced non-US online games operators to seek new markets away from the US and this has proved to be a winning strategy, though many companies are still a long way off from recouping their losses post-UIGEA. In 2008 we can expect an intensification of this strategy for bingo online and many other online gaming enterprises, particularly as the European nation markets become more liberalized.
So, will we see those European nations with existing protectionist gambling policies relax their anti-gambling stances in the way Italy has. Ideally, the online bingo community would like to see the whole of Europe follow the UK model and provide well regulated online markets open to all European-based gaming operators. I think 2008 will see the trend to more liberalized markets continue, but it may be well into 2009 before operators really start to benefit.
Further more, there is a growing trend within the online gaming industry itself that is seeing larger online gaming groups aggressively seeking to expand their scope and reach. For online bingo this has been particularly evident in the Scandinavian sector where operators have recognized a largely untapped female market for bingo. Expect to see more in the way of mergers and acquisitions as this market is developed.
Another interesting development in 2007 which is set to grow over 2008 is the introduction of online gaming in the services offered by airlines for their in-flight entertainment. This is a grey area in the rules and regulations governing online gaming and could see it contribute to more relaxed attitudes on the part of government authorities when it comes to gambling online.
The biggest disappointment of the year has to have been the recent World Trade Organization’s decision not to punish the US over its decision to renege on its treaty obligations to allow access to its online gambling markets. This is an ongoing issue, but to date we have seen little to celebrate over regards European companies being compensated for the US’ determination to maintain its anti-online gambling UIGEA legislation. Don’t expect much to come from this sector over 2008.
In conclusion, my general feeling is that online bingo can expect to grow during 2008, especially in the UK where there is a well established bingo market that now seems to be looking for alternatives to the faltering traditional land-based bingo market. The troubles being faced by the land-based bingo sector are not about to go away and online bingo operators have an opportunity to cash in on this situation.
Written by John Witherspoon – Become a part of a great online bingo community. Play online bingo chat games at BingoStreet.com