What will you be using to play bingo in 12 months?
- Desktop PC
- Laptop/Notebook
- Mobile Phone
- Tablet PC (iPad, Kindle etc..)
Loading ...

The State of the UK Online Bingo Industry

June 10th, 2008

Today we released what we see as the most accurate estimation to date of The Size of the UK Online Bingo Industry. The full press release gives a summary of the numbers based on the data that we collect here at BingoPort.co.uk on a daily basis. For well over a year now we have been monitoring all of the operators in the UK online bingo industry and showing visitors to our site a summary of this information which includes ticket prices, pot sizes, jackpots and number of players in each room. We’ve estimated that over £600 million is being spent on bingo tickets at online bingo sites per year.

So what does this figure take into account and what does it mean for the industry as a whole? I’ll try to briefly explain how we came up with this number and go on to talk about implications across the industry and where we see the current market share sitting.

METHODOLOGY
As anyone with an interest in the bingo industry will know, there are always questions on the true size of the market. We found that with the data that we’ve collected over time, we’re able to get an idea of how much is being returned to players in the form of pots and jackpots. Even with access to this information, it makes it difficult to get a 100% accurate picture of the size of the market because each operator works with different rake margins. That said, we had to make an average estimate of what percentage of each bingo ticket sold is returned to players. Once this was added to the pot size data that we had recorded, we are able to get an idea of how much is spent on bingo tickets. Of course, we used hourly, daily, weekly and monthly averages to make the estimate as accurate as possible.

GROSS PROFIT
Based on the overall amount spent on bingo tickets, we could assume that 15% to 25% is held as rake by the operators. The actual amount held as rake will always change depending on the bingo site. Assuming a hold of 20%, gross profit held by operators on bingo alone would equate to around £120 million per year. On the other side, this means that £480 million is returned to players as prizes and jackpots.

SIDE GAME TURNOVER
From discussions with a variety of bingo operators, side games (ie. slots, hybrid bingo games, video poker, rake games and other casino games) account for between 40% and 60% of a bingo operators overall profit. While not statistically reliable due to a lack of official disclosure by operators, it is interesting more than anything that if across the industry 50% of the operators’ profits were generated by side games, we can add a further £120 million per year in gross profit to the overall figures. This means that around £240 million per year is generated in gross profit across all UK operators.

Of course, some operators would rely more heavily on side games. For example, Jackpot Joy has a huge range of slots and other side games that are used regularly in their marketing. The Jackpot Joy Deal or No Deal slot machine has a regular progressive jackpot in vicinity of high six figures.

MARKET SHARE
Based on the value of tickets purchased and prizes distributed back to players, we have broken down the current market share of the UK online bingo industry. The list below shows that the top two bingo sites have a long standing brand with great reach and promotional potential towards bingo players. Sun Bingo at number one with a 19% share of the online bingo market and Gala Bingo at number two with 16% shows that by having a trusted brand along with constant marketing messages has allowed these two operators to quickly gain market share. On the other side of the coin, quality long term promotions and CRM has kept them on top.

The number three and four industry players are Foxy Bingo (13%) and Jackpot Joy (10%). Lacking well known brands, these two companies have used clever marketing to penetrate the market. It’s obvious that their efforts are paying off.

Sun Bingo – 19%
Gala Bingo – 16%
Foxy Bingo – 13%
Jackpot Joy – 10%
Mecca Bingo – 7%
Ladbrokes Bingo – 5%
Mirror Bingo – 5%
William Hill Bingo – 4%
Crown Bingo – 3%
Think Bingo – 3%
Party Bingo – 3%
888 Ladies – 2%
Other – 10%

THE FUTURE
The immediate future looks bright for the online bingo industry in the UK. Growth is still occurring on a month by month basis, driven by bigger and better marketing campaigns by new and old operators, which serves as a constant reminder of the industry to the general public. This, in turn, is continuing to drive more players online. Operators are still expanding and pushing the limits of bingo game play to an online environment.

In the medium to long term, the fight to maintain growth and retain customers will begin to heat up. We’re already seeing increases in no deposit free cash to entice signups while some operators out the other end and dropping back their no deposit bonuses to control their costs. Promotions are getting bigger and better and those operators with control over their software are beginning to see value in creating new generation games that engage bingo players.

admin

Comments

9 Responses to "The State of the UK Online Bingo Industry"

January 6th, 2009 at 10:55 pm
seksyhuni Says:

i think it will get a lot bigger too with the smoking ban so good luck to all the sites
January 6th, 2009 at 2:02 pm
BUSYLIZZY53 Says:

the online bingo industry is growing dailt thousand of us play online instead ogf going to land bingos
December 23rd, 2008 at 2:10 am
ziegan2009 Says:

it would be good to own a site then i would be raking it in lol
December 12th, 2008 at 3:12 am
quveen Says:

what a great turnover for the sites
i wish i could set up a site lol
gave fun all
December 8th, 2008 at 9:12 am
oxfordexile Says:

I wonder how long it is before the recession will effect all these sitesIn my opinion it has to do something Its a waiting game One will sit and enjoy whilst i can
December 6th, 2008 at 10:45 am
blue222 Says:

i dont think the recession will afect them much – maybe help coz peeps will stay at home more x
October 25th, 2008 at 8:45 pm
emmamc26 Says:

i agree if there is no slots on a site i generally dont stay for long
October 24th, 2008 at 2:30 pm
SukiMax Says:

Big big big business, wish I had a bingo site, the slots and mini games would bring in some fab revenue
October 18th, 2008 at 4:39 pm
kayclap Says:

when you go on a site to play bingo there usually is mini slots to play and i must say people tend to get bored during bingo and play the slots so i bet loads of money is made by this

The State of the UK Online Bingo Industry

Comments

Leave a Reply.

Bingo News Archives