Is the Mobile Gambling Industry Ready to Take Off in 2012?

With more than 200% growth rates in mobile casinos in 2011, I think it seems fair to say that the mobile gambling sector is set for a huge boom in 2012.

If we look at the stats, all the information is leading to the same conclusion: that mobile gambling revenue will continue to encroach on the market share of online casinos and gambling sites.

Over 50% of Americans now own a smart phone, be it the iPhone 4S, Android, HTC, Blackberry or anything else.  The tablet market is also growing massively, replacing other conventional markets such as ebook readers, mobile games platforms such as the PSP, and MP3 players.  If we incorporate tablet technology into the category of “mobile”, which is essentially what it is, then we should see mobile gaming revenues take over online gaming (desktop gambling) by around 2014/15.

More and more online casinos are incorporating mobile casino games and apps to their software, just like All Slots Mobile and 32Red Mobile have done – arguably the two market leaders of the mobile casino industry.

Even in mobile betting, the industry has rapidly taken off.  Mobile sports wagers now represent close to 25% of the total sports betting market, even more so in the UK and Europe where mobile gaming is far ahead of the US market.  A number of bookmakers such as Bet365 and Betfair have recorded 200% up to 400% annual growth rates in mobile betting, which should continue to increase as operators launch more TV and hard shell adverts promoting their mobile services and brands.

While I doubt mobile gambling will even knock online gambling off the map entirely, it will do a good job of eroding its market share and changing how the market operates.  Consider for example, that when you gamble on your mobile phone you have a much smaller screen.  In addition to limiting which games you can play (mobile video slots and blackjack games will need accommodating on smaller screens without a keyboard), the growing influence of mobile users accessing the internet will also change the foundations of the industry.

For example, it’s well recorded that mobile internet users have a much lower attention span and CTR% then desktop users.  Obviously they had to since they have a smaller screen and can’t afford to spend as much time comparing products on multiple tabs like a desktop browser. However, mobile users will also have higher value, since the CPC will increase and brand loyalty will be much higher.  Once a mobile user finds what he is looking for, he will tend to stop looking.  That’s why mobile gambling customers should in theory be worth more to the operator and affiliate then online customers, who tend to just scour the Internet for bonuses and then leave the site.

The increased “engagement” between mobile users and casino operators should also increase brand loyalty, since the operator can contact or “message” the customer much more easily then on the computer.