How is the slowdown impacting the online casino industry?
Thursday 2nd October 2008
While the physical casino venues continue to struggle the online casino sector is a whole different ball game with different costs, different business strategies and a totally different outlook. However, no industry in the world is immune to the situation we are currently experiencing and there will need to be cost cuts at some stage. But where will these cost cuts emerge from?
The employment numbers for a successful online business are far lower than those for an offline business but the allocation of expenditure is very much different, Many online casino sites are what is called ‘white label’, i.e. many of them use the same behind the scenes services with a different ‘face’ for each individual company. The automated systems require fewer employees to run the business but there is a lot more money needed for marketing and promotional issues.
Your local casino down the road may only have one other casino within reachable distance, so competition may be low but employment costs high. On the other hand it is the opposite for an online operation where literally thousands of online businesses are at consumer fingertips ensuring that marketing costs are high and employment costs are lower in comparison.
While the physical casino venues continue to struggle the online casino sector is a whole different ball game with different costs, different business strategies and a totally different outlook. However, no industry in the world is immune to the situation we are currently experiencing and there will need to be cost cuts at some stage. But where will these cost cuts emerge from?