There is one word on the collective lips of the online bingo industry at the moment, and that word is consolidation. Although the recession has been kind to the still blossoming online bingo industry, with growth topping the $1 billion dollar rate last year and looking to grow by a further 60% in 2010, many online bingo operators are finding the maxim “together we stand, divided we fall” a truism to live by this year.
With takeovers from PartyGaming and 888 of Cashcade (who run Foxy Bingo and Cheeky Bingo) and Daub Media (who run Posh Bingo and Wink Bingo), you’d be forgiven for thinking that online bingo is going to become a much smaller, and consequently more faceless, pool of bingo businessmen (and women). But we think there might be a few surprises in store for the world of online bingo, and these are closer to home than you think…
As the online bingo industry has grown, there has also been a proportional growth in the number of bingo referral sites. Started by online bingo fans and businessmen alike, it seems like affiliates are a vital part of any bingo operators marketing mix. But what is surprising is that some of these affiliates are breaking free of their operators, and, thanks to their large community base already, are setting up their own shop. The result? The bingo blabber becomes a bonafide bingo star in their own right.
Take latest newcomer Tea and Bingo. After a launch in November 2009, the site is already clocking up its first bingo rite of passage – the TV advert. And it began from humble beginnings as a bingo referral site. And for further proof, look no further than one of the biggest success stories of last year, which also began life as a referral site – Costa Bingo.
Revealing all during last summer, Costa Bingo chairman Richard Skelhorm revealed the transition from affiliate to operator was a natural one, saying “We entered the bingo affiliate space last year, but it quickly became apparent we were sending a lot more traffic than they anticipated”. As a result, Cost Bingo was born, with Skelhorm noting, through the initial referral site, gaps in the market that Costa could use to offer something new: “We looked at how many new depositors the established rooms were generating and knew we had a chance of competing.”
That was back in June 2009. Fast forward to now, and Costa Bingo has become one of the biggest bingo sites around, providing some serious competition to Cheeky Bingo as the free no deposit online bingo destination. And profits certainly cant be down at Costa Bingo at the moment, as for the month of January, the guys are offering a Happy Hour cashback hour every single day. By joining Costa Bingo now and depositing, Costa Bingo players can expect to receive money back on all games played during their happy hour.
So could this mean the beginning of online bingo for the people, by the people? Seems like it really is all to play for with online bingo in 2010!
