Broadband Penetration

As is being witnessed in the online video games market and downloads industry, the advent of higher levels of broadband makes customer acquisition and monetisation opportunities substantially higher

although payment processing technology will always slow this as a means to growth. It's difficult enough getting a UK card to work at an online gambling site these days, let alone a credit card registered in the Democratic Republic of Congo, for example.

Anyway, back to broadband expansion driving gambling stocks and shares higher. With online casino gambling and poker, the quality of game play dramatically improves with broadband vs a dial up internet gambling connection. The ability to attract and retain customers is likely to be higher, therefore, in areas of high broadband penetration.

The widening uptake of broadband across key European markets should drive more interest among new customers to gamble online, as well as delivering higher wagering per head given faster speeds and an improved experience.

Broadband levels across the world are, obviously, expected to rise dramatically over the next three to four years with Europe showing the highest level of penetration at 30.1% in 2008, rising to 39.8% in 2012.

Overall, the global market is expected to show growth of 350 basis points 7.6% in 2008 to 11.1% in 2012, with Oceania and Asia expected to more than double to 30% and 6.9% respectively. With some of the fastest growth rates coming from the relatively under serviced markets of Spain, Italy, Turkey and Russia.

With a number of online casino gambling and poker operators targeting these markets for growth, notably Spain and Italy, the wider technological developments in the domestic markets are generally supportive of improved gambling options likelihood of conversion of consumers from exploratory to active depositing players.


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