• Party Poker
  • Party Casino
  • Party Bets
  • Party Bingo
  • Party Gammon
  • Party Markets

Casino and Bingo

Online casinos were the starting point for some of the very first online gaming sites, with the first site believed to have been opened in 1996. By 2000, the global gross gaming yield from online casinos was estimated to have been approximately $0.6 billion. Since then, global gross gaming yield from online casinos has grown strongly, reaching an estimated $2.9 billion in 2007, implying a compound annual growth rate of 27% since 2000. Excluding the US, the online casino market is estimated by GBGC to have been worth $1.7 billion in 2007 and that it will continue to grow strongly at approximately 17% per annum until 2012 when the total gross gaming yield in online casino, excluding the US, is estimated to be worth approximately $3.8 billion.

Success in online casino

The major difference between online casino and online poker is that in casino customers play against ‘the house’ whereas in poker, backgammon and other ‘peer-to-peer’ games, they play against each other. In other words, in casino the house takes principal risk and earns a statistical gross margin on the amount wagered whereas in peer-to-peer games the operator simply charges a commission, often referred to as the ‘rake’.

Player liquidity - As a result, while player liquidity in casino is not such an important issue, it is helpful in generating large jackpot prizes and providing confidence to players regarding the integrity of the site and that they will receive their money if they win a large prize. With player liquidity being much less of an issue, there are many more online casino sites than any other form of online gaming site. As at March 2008 CasinoCity.com listed over 700 online casino sites, representing over a third of the total online gaming sites that it monitors.

Other success factors - Success in online casino requires similar attributes for those in poker: expertise in marketing, payments and customer service as well as having a quality product. Games in online casinos include slots, roulette, blackjack and video poker. The outcome for each of these games of chance is determined by a random number generator and in accordance with the game’s rules. Operator revenues are determined by the total amount wagered on each game, the statistical gross margin of each game and on the mix of games played. As the house is taking principal risk, it is possible to lose money in casino. However, as long as players keep playing, the house ‘edge’ means that overall the house always wins.

Market statistics supplied by Global Betting and Gaming Consultants - May 2008