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***GambLux EDITOR ARTICLES*** |
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Gambling on the move
[Saturday, June 24, 2006]
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It was bound to come, the use of mobile phones for gambling. Considering how many people walk around with cell phones (70-80% of the adult population?), the appeal for the gambling industry is too good to miss. In fact, the revenue from mobile phone gambling is set to exceed all other forms of gambling, according to a new report.
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Industry analysts Juniper Research say that mobile gambling services will rocket in the coming years. Today they are worth less than $2 billion (in terms of bets placed) but by 2009 they will reach more than $19.3bn, nearly one-third of all mobile entertainment revenues. By 2001 this figure will jump to $23 billion. This trend is due to the increased appearance of mobile lotteries, which are anticipated to grab 41% of total mobile gambling expenditure during the next five years.
Consider the following typical scenario: Bob Willis lives a hectic lifestyle, always on the move and therefore always working his mobile phone. He likes to place the occasional bet on football matches and horse races but does not have the time to visit traditional betting shops or even use the Internet for this. For him, being able to use his phone for this is ideal. Its a leisurely bet, for a small amount, undertaken at a short free moment during the day. Thats what the online casinos and gambling industry wants too. Not the few high-rollers who arrive every now and then but the little people who keep feeding the system all the time!
The technology to do this never fear is not far behind. The new generation of mobile phones has Java-enabled graphics, color-filled screens and 3G networking
(using GPRS, GSM Data, UMTS, I-MODE - all data layer technologies upon which mobile gambling depends). Payments can be arranged via the monthly phone bill. The mobile gambling service is being set up to rival traditional gambling methods.
Even though the growth figures sound astounding, what kind of social impact will mobile gambling really have? First, a sense of proportion. Although most people have played a lottery some time in its traditional paper form (estimated to be 90% in the UK and USA), far fewer actually participate in casino gaming (including slots). One report in the UK puts this figure at only 14% of UK adults. So mobile gambling will probably be a niche activity directed to those gamblers in the know.
Secondly, social pressures are and will be applied to introduce regulations that control the launch of casino-style services on mobile phones in many countries.
The UKs Gambling Bill (containing wide-ranging regulations) is set to regulate remote gambling on mobile telephones, the internet and interactive television. Gamblers Anonymous (GA) is also taking steps to warn against possible widespread dangers of gambling access for all. They say that it takes time until the industry matures to the point where people become compulsive players. In other words, not if but when.
The charity GamCare, equally concerned about impulse-driven gambling (where everyone, including children, has mobile phones) are drawing up guidelines for operators. They ate talking about how to prevent under-age gambling and suggest number blocks. Parents should keep an eye on phone bills, they say.
There is little question that mobile gambling may well become even more profitable than online gambling over time. That is why the gaming industry is being urged to take a responsible position now and ensure that this new development will not be abused to exploit weak-willed people.
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