Three of the largest online bingo and internet gaming operators in the UK have released first quarter figures and all three have said that the online bingo sector is the most profitable and is supporting their other gaming operations to a large extent. 888 Holdings reported that their first quarter revenues were up 9% to $75 million dollars and the positive figures were a result of the rise in online bingo revenues. Internet gaming operators said that player numbers in all gaming areas such as casino, poker, sports and bingo rose significantly and said that online bingo was the star performer.
888 Holdings has been considering a merger offer from Ladbrokes since December 2010. Chief Executive Officer, Gigi Levy said he was stepping down as CEO but will remain on the board. Recently Ladbrokes announced they were pulling out of talks to buy the Israeli owned 888 holdings. Ladbrokes CEO Richard Glynn stated, “It was very amicable between us but at the end of the day I simply decided it was not in the interests of shareholders. Our drive to make Ladbrokes favorite again has good momentum. But the group expects the UK to remain challenging this year as consumer confidence and disposable incomes continue to suffer.”
The huge success of the online bingo sector was underlined by reports that 888 Holdings had to stagger payments to the buyout of Wink Bingo because of a huge rise in revenues since the deal with vendors Daub was finalized. The Rank Group operates bingo halls and casinos in the UK reported a 2% increase in total revenues and remain hopeful for 2011. Rank Group also has several online gaming operations including online bingo sites. Ranks first quarter results were helped by a recent £154million settlement with the government over tax overcharges. Revenues from land based Mecca bingo halls were up 4% and land based bingo in the UK seems to be recovering from the effects of the global recession.
Despite the increase in bingo revenues the bingo market remains highly competitive. Online bingo is a $2 billion dollar a year business and online bingo operators are struggling for their share of the massive bingo market. Many bingo sites are providing players with increased bingo bonuses; cash back offers and special high stakes games. Bingo deposit bonuses are much larger and most bingo sites have dropped free bingo offers in favor of bingo bonuses that offer players more value for their money.
Because of the highly competitive bingo market players may be in for a very interesting year.
