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How profitable is the mobile gaming market for businesses?

Published on November 1, 2014, 2:34 pm

by Jeff Grant Twitter account Jeff Grant LinkedIn account

The invention of the smart phone has changed the way people live their lives. Phone conversations can happen at any place and at any time. Bills can be paid, products ordered, and instant messages sent simply by reaching into a pocket or purse and pulling out a smart phone. One of the most exciting benefits of the smart phone is that people can access the Internet almost any time they wish, allowing them to surf, play, and communicate almost anywhere.

Because Internet gambling is legally expanding to more and more areas of the world, it's not surprising that the smart phone has become one of the hottest new venues for online gaming. This venue, called "mobile gaming", is a promising trend for businesses.

The chart shows the percentage of players who prefer to gamble on mobile
The chart shows the percentage of players who prefer to gamble on mobile

H2 Gambling Capital, a gambling research organization, predicts that the online gambling market will experience a 30% growth spurt by 2017. With such a lucrative market on the horizon, it's no wonder that online gaming and social gaming companies are scrambling to get in on the action and claim a piece of the profit. In the United States, three states have now legalized online gambling: Delaware,Nevada, and New Jersey. Experts believe it is just a matter of time before the legalized online gambling trend spreads to other areas of the country. This prospect has giant gaming companies salivating for the chance to making lucrative business connections within America's borders.

Probability PLC Reaches Out to U.S. Businesses

Probability PLC has been raking in the dough as a U.K.-based mobile gambling app company since 2004. The company designs and distributes mobile gambling apps, partnering with European giants like Paddy Power and William Hill, Inc. Now that the United States has legalized online gambling in three states, the company's CEO, Charles Cohen, has expressed interest in partnering with some American businesses as well.

About Probability PLC

Probability PLC prides itself on three self-proclaimed qualities: appeal, availability, and activity.

  • Appeal: The company's wide variety of games are appealing because they cater to multiple demographics in ways that they claim their competitors cannot.
  • Availability: According to Probability PLC's website, the company's games are available on more devices than that of any other digital gaming business. In addition, approximately one thousand new devices become compatible with Probability games every year.
  • Activity: The mobile gaming giant claims it is so popular that in just six years, 500 million bets have been made using Probability apps.

Bwin.Party Digital Entertainment Sought by American Casino Companies

MGM Resorts International was approved in November 2012 to operate a real-money online poker site. Looking toward the future, the corporation has already made plans to partner with Bwin.Party in an online poker business. In exchange for poker software and maintenance, Bwin.Party will own a 65 percent share of the company. MGM will own 25 percent, and Boyd Gaming will own the remaining 10 percent. The joint venture is not a done deal, however; it is contingent upon Bwin.Party receiving their license as a service provider in Nevada. Both companies are hopeful that Bwin.Party will become licensed, but some analysts have expressed doubt in the likelihood of that happening.

About Bwin.Party

Bwin.PartyBwin.Party came about when two other gaming companies combined. Those companies were PartyGaming PLC andBwin Interactive Entertainment AG. Bwin.Party, based in Gibraltar, has two big claims to fame: an online poker site called PartyPoker and a sports betting business under the name of "Bwin". Bwin.Party offers more than 140 online games; these games range from casino-style blackjack and slot machines to fortune games and games of skill. The legality of Bwin.Party game use varies from country to country.

888 Holdings Partners with Caesars Interactive Entertainment

In a joint business venture similar to that of Bwin.Party and MGM, online gaming company 888 Holdings has agreed to partner with Caesars Interactive Entertainment. According to the agreement, 888 Holdings will provide poker gaming and technological services to the Caesars company. This project is another example of a brick and mortar business partnering with an online business to take advantage of relaxing online gambling laws in the United States. Experts predict that more such partnerships will blossom as an increasing number of states lean toward legalized online gambling.

About 888 Holdings

888 HoldingsThe company 888 Holdings operates several online gambling sites. Revenue for the fiscal year 2012 was nearly $4 million. Popular sites include,,, the last of which offers casino-type slots and table games. When the Unlawful Internet Gambling Act of 2006 was first brought about, 888 Holdings abstained from U.S. involvement. Since American gambling laws have changed, however, their interest and involvement with U.S. businesses has been rekindled.

Other Online Gambling Sites with Mobile Potential

ZyngaThe San Francisco-based gaming company Zynga, founded in 2007, has become a household name. Zynga creates games for social sites like Facebook as well as stand-alone gaming apps for mobile devices. One of Zynga's most popular games is the Facebook favorite "FarmVille", but the company has created and distributed hundreds more. Since Zynga's inception in 2007, it has acquired numerous other companies, adding to its power and wealth. Some notable acquisitions include Serious Business, XP Media, Floodgate Entertainment, andMarket Zero.

Zynga partnered with Bwin.Party in October 2012 to initiate some real-money games in the U.K. The games include a FarmVille slot variation with real cash winnings, online poker, and almost 200 casino-type games.

Opening Doors to Increased Profits

The Unlawful Internet Gambling Act of 2006 supposedly prohibits gambling online in the U.S., but the wording of the act was so vague that people have found loopholes and ways to navigate around the federal law ever since it was created. The recent explosion of smart phone technology paired with the growing trend of legal online gambling in America has opened many doors for gaming companies. Probability, Bwin.Party, 888 Holdings, and Zynga are just a few of the gaming companies who stand to profit from the changing digital and legal gambling landscape in the United States.


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