Online Bingo Companies: One big, happy family?

September 25, 2009 Articles

Written by Lisa (September 25, 2009 at 9:44 am)

The recent reports that online bingo operator Cashcade had been acquired by the gaming company PartyGaming has been big news in the world of online bingo. As it stands, the deal has meant that something of a gaming powerhouse has been formed, with not only a sizeable collection of bingo brands but also in poker, casino and betting sectors. As the popularity of online bingo grows, and coupled with the recession, it seems it makes more sense for the industry to begin the process of consolidation. But will this have any negative effects on the average online bingo player?

In Egaming review, it was noted the recent trend of consolidation could definitely be on the rise, particularly in the merging of UK and US operators. It was stated that “Industry consolidation among the key listed operators has yet to begin in earnest, but may be reignited following expected US settlements yet to be concluded by key companies such as Sportingbet and 888.” As the bingo market grows, more people will want to capitalise on it’s success, and having a few bingo sites compared to one obviously makes good business sense. This is especially notable when you consider that Cashcade, the target of PartyGaming’s recent acquisition, now holds around 23% of the total UK online bingo market share, with around 2,500 players daily.

Already, there are some notable companies that own a range of bingo sites. These include:

• Cashcade, who operate Foxy Bingo, Think Bingo, Foxy Zero, Little Big Bingo, Get Minted Bingo, Kiss my Bingo and METROPlay
• Daub, who are the operators of Wink Bingo, Posh Bingo
• European Domain Management Ltd, who run Crown Bingo, Simply Bingo, Crazy Bingo and Event Bingo
• St Minver, who are the parent company of Love Bingo, Chit Chat Bingo and Bingo ID
• Cassava Enterprises, who are a division of gaming giant 888.com (who also run 888ladies.com). Cassava are responsible for the Cheeky Bingo (alongside Cashcade)and Bingo Fabulous brands.
• Gamesys, who are the operators of Daily Star Bingo, Jackpotjoy and New Sun Bingo
• The Gala Coral group, who alongside bookmaking and casino sites also run Gala Bingo, Sharons Bingo, Minxy Bingo

But what sort of implications does this increasing trend of consolidation mean for the online bingo community? On one hand, some may argue that if we begin to have operators with large monopolies, less consideration will be given to the sites themselves, with an emphasis on overall profitability. And a distinct lack of competition could mean that sites are less interested in getting players through attractive deals, as they have less people to compete with. It is definitely easy to believe that there is something impersonal about a big faceless company- it’s the same as having your local butcher’s replaced by a large supermarket.

But the world of online bingo is a web of deals and partnerships between brand owners, marketing operators and software providers. Even in the list above, the companies are subsidiaries of other companies, and many will share software contracts with providers such as Virtue Fusion, Globalcom and Playtech. As such, there is practically no example of a bingo site that totally exists on its own, and because of this, there still remains a sure sense of competition. And the relative newness of the online bingo sector means there are still plenty of new brand owners establishing new sites that mean that any operator has to keep on his toes in order to satisfy the growing number of online bingo fans! Although more bingo buyouts could mean that this will be something that will change in the future, this needn’t be a detrimental thing.

No matter how many bingo sites a company owns, there would be no reason to therefore assume that monotony and replication will be a likely result. Although some sites will have a similar look and feel, and software will mean games will be played in the same way, it’s a case of some familiar features, and some new features. No bingo fan wants all bingo sites to be the same, as there is always that “little something” about your favourite bingo site that makes it special for you. No operator would ever make their sites exactly the same, as it just wouldn’t make good business sense. The sheer breadth of online bingo, and capacity for growth, means that any bingo operator worth its salt will know that there really is something for everyone out there!

A really good example is Cashcade. Although they have one of the largest portfolios of bingo brands, if you go on the sites themselves, you will find that there are huge differences. Each one has its own unique personality, with a devoted army of players that will rave about why it is their favourite to boot! Differences in site design, characters, games on offer and of course the prizes mean that these brands work together, accommodating the tastes and needs of any online bingo fan. And sure enough, Cashcade keep finding new things to entertain bingo audiences, with the introduction of no less than three new bingo brands this year! Much of their success has been less about squeezing out competition through buying them out, but strategically offering a wide and varied selection of innovative brands that online bingo players can really identify with.

What a big bingo company can offer is consistency, and high gaming standards that can only come with a lot of experience. As a result, you’ll find that should you find yourself a fan of one bingo site, you may well find yourself a loyal family member!

Tagged as: cashcade, Cheeky Bingo, crown bingo, Foxy Bingo, foxy zero, Gala Bingo, little big bingo, love bingo, Posh Bingo, sun bingo, Think Bingo, Wink Bingo