$100 Billion Opportunity When Online Gambling Is Legalized

by Revenue Performance Staff
January 25, 2012

Online gambling may soon be legalized once again if initiatives currently in Congress come to fruition. If that happens, many affiliates and networks will celebrate; and Facebook and Zynga’s revenues will grow like crazy.

While many in the performance marketing community have a lot of experience with traditional gambling websites, what will be fascinating is to see how the upsurge in mobile and social marketing creates both new opportunities and new challenges.

In this regard, Facebook is regarded by many as a near perfect platform for the promotion of online gambling, and the big social gaming companies like Zynga are salivating, with up to $5 billion of annual revenues predicted for Zynga by JP Morgan in a recent research note.

Online gambling has a long history as a driver of big profits and hot technology in the performance marketing industry and many publishers took a big hit when the Bush Administration clamped down. Now, Rep. Barney Frank and others are pushing to change things as rumors abound of major lobbying dollars flowing in the right directions.

Facebook is being talked about as being potentially worth $100 billion if online poker and other games are legalized, with hefty earnings multiples attaching to gambling companies and Facebook’s 30% cut of all virtual goods revenues purchased through companies like Zynga.

There’s going to be a huge opportunity for affiliates that crack the code of promoting online gambling on social platforms. And the opportunity will come sooner rather than later given the lobbying efforts of the big casino corporations at Federal level and the Indian tribes at state level. Be ready.

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One Response to “$100 Billion Opportunity When Online Gambling Is Legalized”

  1. john william Says:

    Revenues in online gaming business rose from only $800 million in 1998 to over $24 billion in 2010. London-based Merrill Lynch analyst Andrew Burnett says online gaming business could generate over $177 billion in revenues by year 2015. Over $100 billion will come from sports betting. The global online gaming industry continues to grow, despite the regulatory restraints and worldwide economic crisis. While the whole world is being hit by this financial downturn, online gaming business has shown its resiliency. A study performed by the worldwide gambling market advisor Mr. Marco Felice Baranzelli has proved that online gambling industry keeps constantly growing bringing online casino and poker business owners colossal profits. There are still lots of countries that will emerge as part of the global online poker market for years to come.

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