14 May 2010

Bingo News: Is US broadband hindering the egaming industry?

The international egaming industry’s future growth depends upon two factors; the relaxing of complex gambling laws in certain areas and people from all walks of life being able to afford the internet and therefore increase traffic to egaming sites.

It is fairly simple to register and run an egaming business in the UK and broadband is more popular ever due in part to the competitive prices on the market.

Mobile broadband uses in the UK have grown hugely in the last 3 years. These are people using a USB mobile broadband device with their laptops, in favour of mobile internet access on a mobile phone. This is obviously a plus for the egaming industry.

The Worldwide egaming industry can’t expect the same high demand for mobile broadband in other domains to help improve site traffic as it does in the UK. Whilst the UK and Australia have seen a rise in mobile broadband sales over the last couple of years, there been the same rate of growth in USB based American mobile broadband sales.

Americans pay three times more than the British for mobile broadband tariffs and up to 8 times more for the USB sticks that get you online remotely. The standard two year mobile broadband contract in the UK costs around $552 next to $1440 in the US, that’s a difference of $890. These figures go some way to explaining why broadband usage is lower in the US compared to other places.

Some gaming businesses are betting that the US federal law will change to enable egaming legislation in the near future but should take into consideration macro-environmental factors that will affect future performance.

The egaming economy will struggle to reach its full potential when the legislation is finally relaxed due to the low US interest in mobile broadband. If the international egaming industry called for price differences between countries to be addressed, the industry could do well but whether this will happen any time soon remains to be seen.