Skill Gaming, Online Bingo, and Others

- Another reason for the growing relevance of the casual gaming sector is that regulations and laws regarding gambling are getting more and more complex and are forcing state lotteries as well as private companies to look for alternative products to their traditional gambling offerings. - Millions of potential casual gamers and gamblers are not yet targeted by the industry - As the market for heavy punters and gamblers becomes more and more saturated, the industry begins to focus on casual gamers and gamblers and especially on women. - Growing number of investors - Almost every week high-caliber companies, such as media giants Liberty and Burda, as well as private equity companies, such as Apax, are investing in the casual gaming sector.<br><br> - The evaluation of relevant casual gaming sites showed that the number of games offered varies widely, that customer service/support is in some cases not satisfactory, and that only very few sites offer languages other than English. - Europe will be the most important region for future growth, according to 91% of the experts. Sample pages of report MECN Casual Gaming and Gambling Copyright Strictly Enforced 3 Table of contents 1 EXECUTIVE SUMMARY 4 2 AN INTRODUCTION TO CASUAL GAMING AND GAMBLING 7 2.1 The next promising trend in gambling and gaming?<br><br> 7 2.2 Casual gaming as the new darling of investors 9 2.3 Liquidity and number of gamers - The key to success 11 3 SKILL GAMING 12 3.1 What are games of skill? 12 3.2 Current skill gaming market size 15 3.3 Some examples of popular skill games 17 3.4 Regional differences in skill gaming 19 4 ONLINE BINGO 20 4.1 Bingo - the most relevant casual gambling offer 20 4.2 Current market size 21 5 OTHER RELEVANT CASUAL GAMING OFFERS 24 5.1 Fantasy sports 24 5.2 Mahjong - casual gaming goes Asia 24 6 THE CASUAL GAMER 26 6.1 Number of casual gamers 26 6.2 General demographics of casual gamers 26 6.3 Casual gaming as the cTrojan horse d for casino, poker, and other forms of gambling 30 7 THE BUSINESS MODEL UNDERLYING CASUAL GAMING 32 7.1 The main revenue sources 32 7.2 Major cost elements 38 8 LEGAL ASPECTS - STILL SOMEWHAT AMBIGUOUS 41 8.1 United States 41 8.2 Europe 41 8.3 Asia Pacific / Australia 42 9 OVERVIEW AND EVALUATION OF CASUAL GAMING AND GAMBLING OFFERS 43 9.1 Elements/characteristics of successful casual gaming sites 43 9.2 Overview and evaluation of skill gaming sites 44 9.3 Overview and evaluation of online bingo sites 45 9.4 Overview and evaluation of fantasy sports offers 46 10 FUTURE DEVELOPMENT OF THE CASUAL GAMING AND GAMBLING MARKET 47 10.1 Growth estimates 47 10.2 Future growth drivers 48 11 RECOMMENDATIONS - WHAT SHOULD BE DONE? 53 11.1 Recommendations for casual gaming and gambling operators 53 11.2 Recommendations for state lotteries, media companies, and technology providers 54 12 DETAILED ANALYSIS OF TOP CASUAL GAMING AND GAMBLING SITES 55 12.1 Bingo.com 55 12.2 Dynasty Gaming 56 12.3 Flipside Network 57 12.4 GameAccount 58 12.5 GameDuell 59 12.6 IWin 60 MECN Casual Gaming and Gambling Copyright Strictly Enforced 4 12.7 King / Midasplayer 61 12.8 Miniclip 62 12.9 PartyBingo 63 12.10 Pogo 63 12.11 SkillJam / Fun Technologies 64 12.12 WorldWinner / Fun Technologies 66 13 SOFTWARE PROVIDERS AND LICENSEES FOR THE CASUAL GAMING MARKET 68 13.1 Fun Technologies 68 13.2 GameAccount 68 13.3 Greentube 69 13.4 Parlay Entertainment 69 14 METHODOLOGY 71 Exhibits Exhibit 1: Core sectors of the online casual gaming and gambling market Exhibit 2: Overview of some recent mergers and acquisitions in casual gaming Exhibit 3: Player lifetime in casual gaming - Results of MECN survey Exhibit 4: Analysis of matching and ranking systems of prominent skill gaming sites Exhibit 5: Current worldwide market size of skill gaming - Results of MECN survey Exhibit 6: Games played per year for leading skill gaming operators Exhibit 7: Example of online backgammon Exhibit 8: Example of online solitaire Exhibit 9: Example of Pyramid Exhibit 10: Example of Miner Exhibit 11: Example of Zuma Exhibit 12: Most popular skill games per region - Results of MECN survey Exhibit 13: Example of 75-ball bingo Exhibit 14: Example of 90-ball bingo Exhibit 15: Number of US-targeted, multiplayer pay-to-play bingo sites on the Internet over the last six years Exhibit 16: Current worldwide market size of online bingo - Results of MECN survey Exhibit 17: Examples of fantasy league sites Exhibit 18: Example of online version of mahjong Exhibit 19: Number of current regular skill gaming and online bingo players (playing for cash) - Results of MECN survey Exhibit 20: Average age of online casual gamers - Results of MECN survey Exhibit 21: Gender distribution in casual gaming today and in 2010 - Results of MECN survey Exhibit 22: Average conversion rate from free to cash players - Results of MECN survey Exhibit 23: Motivations for casual gamers - Results of MECN survey Exhibit 24: Registered users of leading skill gaming operators Exhibit 25: Conversion rate from skill gaming and online bingo to gambling (casino, poker, betting) - Results of MECN survey Exhibit 26: Conversion rate from gambling (casino, poker, betting) to skill gaming and online bingo - Results of MECN survey Exhibit 27: Average revenue structure in casual gaming - Results of MECN survey Exhibit 28: Example of matches offered and the associated fees and prizes Exhibit 29: Commission fee schemes of skill gaming operators Exhibit 30: Commission/rake structure of PartyGammon Exhibit 31: cCorrelation d of commission in regards to total entry fees Exhibit 32: Overview of partnerships of top skill gaming operators Exhibit 33: Example of subscription model Exhibit 34: Advertising at casual gaming sites Exhibit 35: Paid services/content of operators of fantasy sports Exhibit 36: Annual revenue per user (ARPU) in skill gaming and online bingo - Results of MECN survey MECN Casual Gaming and Gambling Copyright Strictly Enforced 5 Exhibit 37: Average cost structure in casual gaming - Results of MECN survey Exhibit 38: Cost structure of skill gaming segment of Fun Technologies (SkillJam) Exhibit 39: Cost per acquisition in skill gaming and online bingo - Results of MECN survey Exhibit 40: Best marketing channels for targeting casual gamers - Results of MECN survey Exhibit 41: Most important elements/characteristics of successful casual gaming sites - Results of MECN survey Exhibit 42: Traffic ranking of relevant skill gaming sites Exhibit 43: Evaluation of relevant skill gaming sites Exhibit 44: Traffic ranking of relevant online bingo sites Exhibit 45: Evaluation of online bingo sites Exhibit 46: Evaluation of relevant fantasy sports offers Exhibit 47: Market size of skill gaming worldwide in 2010 - Results of MECN survey Exhibit 48: Market size of online bingo worldwide in 2010 - Results of MECN survey Exhibit 49: Drivers of casual gaming 9s future development - Results of MECN survey Exhibit 50: Relevant geographical regions for casual gaming in the future - Results of MECN survey Exhibit 51: Examples of casual gambling offers of reputed state lotteries Exhibit 52: Industry sectors of survey participants Companies mentioned in this report Apax Argo Global Capital Austrian Lotteries Benchmark Capital BetandWin Bingo.com Bingworks Casual Games Association De Lotto Dynasty Gaming Endemol ESPN Fantasy Games Fanball Flipside Network Fun Technology Gala Bingo GameAccount Gamebookers GameColony GameDuell GSN Network GTech HarbourVest Partners Apax Argo Global Capital Austrian Lotteries Benchmark Capital BetandWin Bingo.com Bingworks Casual Games Association De Lotto Dynasty Gaming Endemol ESPN Fantasy Games Fanball Flipside Network Fun Technology Gala Bingo GameAccount Gamebookers GameColony GameDuell GSN Network GTech HarbourVest Partners Helix International Ho Group Ho Majiang Holtzbrinck Networxs Index Ventures Intermix Media IWin King.com La Française des Jeux Ladbrokes Liberty Media Madwin Midasplayer Miniclip MLB.com MoneyGaming MSN Games Octopi OnlineBingo.co.uk Parlay Entertainment PartyBingo PartyGaming PartyGammon Helix International Ho Group Ho Majiang Holtzbrinck Networxs Index Ventures Intermix Media IWin King.com La Française des Jeux Ladbrokes Liberty Media Madwin Midasplayer Miniclip MLB.com MoneyGaming MSN Games Octopi OnlineBingo.co.uk Parlay Entertainment PartyBingo PartyGaming PartyGammon PKR Playtime Games Pogo PremiereWin Real Time Fantasy Sports RealOne Arcade Sandbox Scientific Games SkillKing Sky Spill Group SpinTop Games Sportingbet Svenska Spel Tipp24 Total Sports Asia Trident Gaming UK National Lottery WestLotto WorldWinner Yahoo!<br><br> Fantasy Sports Yahoo! Games Youxi Zero Stage Capital Apax Argo Global Capital Austrian Lotteries Benchmark Capital BetandWin Bingo.com Bingworks Casual Games Association De Lotto Dynasty Gaming Endemol ESPN Fantasy Games Fanball Flipside Network Fun Technology Gala Bingo GameAccount Gamebookers GameColony GameDuell GSN Network GTech HarbourVest Partners Fax order form for the report: Casual Gaming and Gambling on the Internet - Skill Gaming, Online Bingo, and Others Fax to +49 (0) 89 3835 6786 or +44 (0) 207 692 4089 Please send me an electronic version (pdf) of the report: Casual Gaming and Gambling on the Internet - Skill Gaming, Online Bingo, and Others USD 785.00 (exc. VAT/MwSt) Mr/Mrs/Dr: First Name: Last Name: Company Name: Address: Post Code: Country: City: Payment details Email: Telephone: Signature: Date: Please debit my Visa Mastercard Amex Card No.: Expiration Date: or Please invoice my company Card Holder Name: Signature: F r i n l n r r m n.n Contact us: Munich / Germany MECN Germany Fürstenrieder Str.<br><br> 279a 81377 Munich Germany Tel.: +49 (0) 89 7412 0235 Fax.: +49 (0) 89 7412 0102 info-germany@mecn.net London / UK MECN GmbH Office 404, 4th Floor - Albany House 324/326 Regent Street London W1B 3HH - UK Tel.: +44 (0) 207 692 4088 Fax.: +44 (0) 207 692 4089 info-uk@mecn.net

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