With figures suggesting the growth of online bingo is going to top the $2 billion mark by 2012, and see the industry reach the heady heights of over $1.2 billion in the next year, it seems hard to imagine just how online bingo intends to get even bigger!
But with plenty of massive jackpot wins and huge player numbers in games, it seems that there certainly will be a bit of a challenge ahead in curbing the enthusiasm of online bingo players! And speaking ahead of the huge industry event The Online Bingo Summit (due to take place over the summer), one industry bigwig has been waxing lyrical about the huge growth potential still in the online bingo world.
As CEO of Virtue Fusion, a bingo software developer that recently continued another big industry trend of consolidation by being bought out by Playtech for £36m, it seems Bob McCulloch has plenty to celebrate about. With industry consolidation helping to swell the pockets of big gaming operators, with the 888 Group buying out Wink Bingo and the Foxy Bingo Cashcade family acquired by PartyGaming, there seems to be much to be positive about when it comes to conducting bingo business…
Despite reports that the online bingo world may be reach maturation, McCulloch was still upbeat that there was every chance for the online bingo world to keep getting bigger and better for many years ahead, saying “After the developments we have seen over the past few years, it is somewhat inevitable that industry commentators are questioning if the UK market has started to reach maturity”
“It might now be worth hundreds of millions of pounds but there is still room for growth for online bingo. There is certainly more scope for new licensees on the network, though it is likely this will be at the expense of some of the smaller and less creative operators”
Hinting that innovation was key for survival, McCulloch seemed to hint at the idea facing many offline bingo operators – that they must stay ahead of their competitors, or face being left behind or swallowed up by the growing number of online bingo monopoly companies. However, selling up does not equate to selling out, with McCulloch keen to stress that the recent sale of Virtue Fusion will only help strengthen the companies position as one of the most innovative software developers around
“We are constantly innovating to keep ahead, which is why you have recently seen deals such as ours with Endemol and the launch of our groundbreaking integrated social networking feature, and there are plenty more to come. Playtech are similarly focused on innovation and the deal also brings huge benefits to our network with the largest library of side games in the gaming industry.
Market segmentation will continue to bring new target groups and partnerships that enable further market growth, but it should not be achieved at the expense of ignoring customer retention. This should be maximised by consolidating and not forgetting about those that already rely on you.”
And turning to the age old question of the secret to success for online bingo operation, McCulloch suggested there were “a number of essential components for success.”
“The first is liquidity, which can only come from a very major network of operators and users – such as the one we have built at Virtue Fusion. This will grow even further when we combine the Playtech and Virtue Fusion Bingo liquidity pools in the very near future. Companies are also going to have to innovate or else they will undoubtedly be left behind. Bingo will continue to present itself as an attractive and complementary business proposition to online sports book, casino, and poker operators as well as land-based firms too, but they need to be presented with new and interesting products.”
And then there was the all important idea of expansion – with the need for online bingo operators to venture into unchartered waters as they seek to find new acquisitions in terms of players and business opportunities.
“Despite all the talk of growth and maturity, it’s also fair to say that we have only tapped into a very small part of the global bingo market. That said, it is important to tread carefully in newly regulated markets – and it’s also good to have a polished crystal ball! “
And so as online bingo fans, it seems that if McCulloch’s comments are anything to go by, the creative bingo companies look set to triumph as the online bingo world starts finding itself developing into a serious industry. As players – this can only be a good thing, with 2010 looking set to be a year in which we really start to see the online bingo wheat being separated from the chaff!
