Online Poker and the Stockholm Effect
While American legislators are still debating whether play at online casinos and poker rooms is legal, US based players are still online - but playing more gingerly than they have been previously. This is casting a shadow over the ultra-competitive online poker industry.
In the meantime, however, the Swedish Government has officially sanctioned online poker! A State-run poker room was launched in April 2006 based on Boss Media software (Svenskaspel).
Bosse Ringholm, until recently Sweden’s Deputy Prime Minister, was keen to ensure that Swedes playing poker online do so with organisations that are under the control of the Swedish State; “The goal is to transfer existing Internet poker players from the unregulated market to the regulated market.”
So what? Well the impact some are referring to as “The Stockholm Effect” has had significant flow on across the whole industry and may in fact prove to be a significant catalyst for more consolidation of poker sites.
Three of the poker sites recommended by the PokerLabRat.com team are squealing a little - and we are confident that many others - particularly those with lesser reputations - will also feeling the pinch. Here’s some media quotes from these 3 sites:
Betsson Poker (A key feeder site to the massive BWIN-owned Ongame Poker Network)
“For Betsson Poker the quarter was not satisfying. The number of registered poker players increased by 7 percent to 241,000, while the number of active poker customers decreased by 15 percent to 29,900 during the quarter. The primary reason for the decrease was increased competition in poker on several of Betsson’s core markets.”
32Red Poker (A Microgaming Prima Poker Network site and Part of specialist online gambling company Trafalgar Betting & Gaming Ltd, London SX listed)
32Red reported substantial growth in their Poker Room, with the first half of 2006 seeing revenues more than double, active players and new players more than triple, the company; “experienced a softer performance than anticipated with the 2005 growth path not continuing. Market factors such as the launch of the Swedish Government’s online poker room and aggressive rakeback offers from competitors have impacted revenues negatively from mid March onwards.”
Ladbrokes Poker (Online since 2000 and Part of Ladbrokes International Limited, one of the UK and Europes largest online gambling and sports betting operations)
Ladbrokes spokesperson stated that; “Growth in Poker has been less buoyant than last year, with competition challenges emerging, particularly in our important Swedish market, compounded by the distraction of the World Cup……Poker gross win grew by 15% to £21.3 million, impacted by increased competition, particularly in Sweden with the launch of the state lottery poker site. Average monthly active player days grew by 39% to 496,000 and yield per unique active player fell 28% to £161.”
Don’t we live in interesting times? Perhaps the potential player pool is not as big as many industry analysts had imagined? We suspect more innovative player inticements in the form of joining and loyalty bonuses will be a key feature of Q4. Check out PokerLabRat.com’s Best Poker Bonuses on a regular basis as we’ll keep it up to date with any changes!
>>TO Betsson Poker Review
>>TO Betsson Poker
Stumble it!
Click to
