Mobile Gambling

Overview

This highly anticipated 5th edition of the mobile gambling report provides the most comprehensive analysis of the mobile gambling environment to date.  It segments the market by casinos, lotteries and betting and provides vital analysis of national and international regulations and legislations pertaining to mobile gambling service.

Featuring extensive one to one interviews with senior executives within the mobile gambling industry and profiles of the leading application and service providers, this in-depth report  investigates key hurdles such as payment processing, network coverage and age verification and projects the market for 8 key regions and the UK, up until 2013.

Data is presented in easy to understand forecast tables and charts and provides mobile gambling adoption level forecasts, average wager per user, total wager and gross win for both the current market for 2007 and future market up to 2013. 

Table of Contents

Executive Summary

1. Cellular Market Growth

1.1 Introduction
1.2 Growth of the Cellular Market
1.2.1 Global Cellular Subscriber Market
Figure 1.1: Cellular Subscriber Growth (m) by 8 Key Regions 2006-2013
Table 1.1: Cellular Subscriber Growth (m) by 8 Regions 2006-2013
Figure 1.2: Cellular Subscriber Base, Market Share (%) by 8 Key Regions 2006-2013
Figure 1.3: Cellular Subscribers Penetration (%) by 8 Key Regions 2006-2013
1.2.2 Leading Mobile Operator Groups by Subscriber Base
Table 1.2: Leading Mobile Operator Groups by Subscriber Base (m) Q1 2008
1.2.3 Growth of 3G
Table 1.3: Global Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
Figure 1.4: Global Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
1.3 Regional Cellular Market Growth
1.3.1 North America
i. Mobile Phone Penetration
ii. US Market Structure
iii. 3G Adoption
Figure 1.5: North American Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
Table 1.4: North American Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
1.3.2 South America
i. Diverse Region
ii. Mobile Penetration Rates
iii. Dominant Technology
iv. Players in Region
v. 3G Deployments
Figure 1.6: South American Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
Table 1.5: South American Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
1.3.3 Western Europe
i. Mobile Penetration
Figure 1.7: Western Europe Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
ii. Market Structure
iii. 3G Penetration
Table 1.6: Western Europe Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
1.3.4 Eastern Europe
i. Mobile Penetration
Table 1.7: Eastern Europe Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
Figure 1.8: Eastern Europe Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
ii. 3G Penetration
1.3.5 Far East & China
i. Mobile Penetration
ii. 3G Services
Figure 1.9: Far East & China Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
Table 1.8: Far East & China Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
1.3.6 Indian Sub Continent
i. Mobile Penetration
Figure 1.10: Indian Sub Continent Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
ii. 3G Services
Table 1.9: Indian Sub Continent Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
1.3.7 Rest of Asia Pacific
i. Mobile Penetration
Figure 1.11: Rest of Asia Pacific Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
ii. 3G Adoption
Table 1.10: Rest of Asia Pacific Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
1.3.8 Africa & Middle East
i. Market Background
ii. Mobile Penetration
Figure 1.12: Africa & Middle East Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
iii. Players
iv. ARPU
Table 1.11: Africa & Middle East Cellular Subscriber Forecasts (m) by Technology (2G, 2.5G, 3G, 3.5G/3.9G) 2008-2013
v. 3G Adoption
1.4 The Opportunity for Mobile Entertainment
Figure 1.13: Monthly Voice ARPU ($), Selected Countries (France, Germany, Italy, Netherlands, Spain, UK, US), 2003-2007
1.5 The Opportunity for Mobile Gambling Service

2. The Mobile Gambling Market

2.1 Introduction
2.2 The Dynamics of Mobile Gambling
2.2.1 How People Gamble
2.2.2 Mobile Gambling Drivers
i. Convenience
ii. Large Consumer Base
iii. Ideal Target Market
iv. Privacy
v. Mobile Internet Adoption is Increasing
vi. Handset UIs Have Improved Dramatically
vii. Deregulation of Gambling Services (UK only)
viii. Operator Attitudes Have Changed
2.3 Types of Games and Services
2.3.1 Casino Style Gambling
Table 3.1: Traditional Casino Games Popular with Online Gamblers
2.3.2 Lotteries
2.3.3 Sports Betting
2.3.4 Betting Exchange

3. Mobile Gambling: The Players

3.1 Applications Providers
3.1.1 Spin3
3.1.2 Probability
i. Company Background
ii. Products and Services
3.1.3 Win Gaming Media (WGM)
i. Company Background
ii. Products and Services
Figure 3.1: WGM Architecture Overview
3.1.4 Mfuse
i. Company Background
ii. Products & Services
Figure 3.2: Mfuse NOVO platform
iii. Corporate Strategy
3.1.5 Cellectivity
i. Company Background
ii. Products and Services
iii. Corporate Strategy
3.1.6 Chartwell Technology
i. Company Background
ii. Products and Services
3.1.7 Betfair
i. Company Background
ii. Products and Services
3.1.8 WinOne (EGET)
i. Company Background
ii. Products and Services
3.1.9 Phantom Fiber
i. Company Background
ii. Products and Services
Figure 3.3: Phantom Fiber Advanced Wireless Platform
3.1.10 MobileAware
3.1.11 Playtech
i. Company Background
ii. Products and Services
3.1.12 Cecure Gaming
3.1.13 Managed Gaming Solutions
i. Company Background
ii. Products and Services
Figure 3.4: JetBet Gaming Platform
iii. Corporate Strategy
3.1.14 KK Games
i. Company Background
ii. Products and Services
a. kkbet
b. kkfootball
3.1.15 Openlot
Figure 3.5: Openlot Platform
3.2 Service Providers
3.2.1 Mobile Casinos
i. NetPlay
a. Company Background
b. Corporate Strategy
c. Products and Services
ii. Intertops
iii. Wild Jack Mobile Casino
3.2.2 Mobile Betting
3.2.3 Mobile Lotteries
i. UK: The National Lottery
ii. Lottomatica/GTECH
iii. Million 2-1
a. Company Background
b. Products and Services

4. Telecom and Gambling Regulation

4.1 Regulations
4.1.1 Introduction
4.2 Gambling Regulations
4.2.1 Overview
4.2.2 US Regulation
i. The Wire Act 1961
ii. Kyl Bill
iii. HR4411 and the SAFE Port Act
iv. Repercussions from HR 4411
v. The People vs. Yahoo!
vi. The WTO Verdict
vii. Future Prospects
viii. AB 471 – The Nevada Bill
4.2.3 Canada
4.2.4 The UK Model – Legalisation and Regulation
i. The Gambling Act, 2005
4.2.5 Europe
i. Pan European Legislation
4.2.6 Asia-Pacific
4.2.7 Latin America
4.2.8 Africa/Middle East
Table 5.1: Gambling in South Africa, Total Wager and Gross Win ($m), 2006/7
4.3 Other Regulations – Mobile Content
4.3.1 Self Regulation – The Operators’ Approach
i. Independent Mobile Classification Body (IMCB)
ii. Internet Content Rating Association (ICRA)
4.3.2 PhonepayPlus
4.3.3 OFCOM
4.3.4 CTIA
4.3.5 Pan-European Legislation
i. Directive 95/46/EC: Processing Personal Data and the Protection of Privacy
ii. The E-Commerce Sector Data Protection Directive (2002/58/EC)
iii. The Distance Selling Directive (97/7/EC)
ii. The E-money Directive

5. Hurdles to Deployment and Adoption

5.1 Trust
5.2 Processing of Payments
Table 5.1: The Three Principles of PRSMS
5.2.1 Payforit
5.2.2 GPay
5.3 The User Interface
5.3.1 Difficulty in Discovering Services and Content
5.3.2 Difficulty In Accessing Services and Content
5.3.3 Difficulty in Navigating Services and Content
5.3.4 Difficulty in Utilising Multiple Applications Simultaneously
5.4 Data Cost
5.5 Industry Structure
5.6 Network Coverage
5.7 Acceptance
5.7.1 Problem Gambling
i. Gamcare
5.8 Age Verification

6. Forecasts

6.1 Introduction
6.2 Mobile Casinos
6.2.1 Mobile Phone Users Who Gamble Using Casino Type Services (Single User)
Table 6.1: Percentage of Mobile Users Who Partake in Casino-type Gambling Services (Single-User). By Region 2006-2013.
Figure 6.1: Number of Mobile Users (m) Who Partake in Casino-type Gambling Services (Single-User). By Region 2007-2013.
Table 6.2: Number of Mobile Users (m) Who Partake in Casino-type Gambling Services (Single-User). By Region 2006-2013.
6.2.2 Mobile Casino Average Monthly Wager (Single User)
Figure 6.2: Average Monthly Wager ($) Per User, Mobile Casino Services (Single User). By Region 2007-2013
Table 6.3: Average Monthly Wager ($) Per User, Mobile Casino Services (Single User). Regional Forecasts 2007-2013
6.2.3 Total Mobile Casino Wagers (Single-User)
Figure 6.2: Total Wagers ($m), Mobile Casino Services (Single User). Regional By Region, 2007-2013.
Table 6.4: Total Wagers ($m), Mobile Casino Services (Single User). By Region, 2007-2013.
6.2.4 Total Mobile Casino Gross Win (Single-User)
Figure 6.3: Total Mobile Casino Gross Win ($m) (Single-User). By Region 2007-2013
Table 6.5: Total Mobile Casino Gross Win ($m) (Single-User). By Region 2007-2013
6.2.5 Mobile Phone Users Who Gamble Using Casino Type Services (Multi-User)
Table 6.6: Percentage of Mobile Users Who Partake in Casino-type Gambling Services (Multi-User). By Region 2006-2013.
Figure 6.4: Number of Mobile Users (m) Who Partake in Casino-type Gambling Services (Multi-User). By Region 2007-2013.
Table 6.7: Number of Mobile Users (m) Who Partake in Casino-type Gambling Services (Multi-User). Regional Forecast 2007-2013.
6.2.6 Mobile Casino Average Monthly Wager (Multi User)
Figure 6.5: Average Monthly Wager ($) Per User, Mobile Casino Services (Multi User). By Region 2007-2013
Table 6.8: Average Monthly Wager ($) Per User, Mobile Casino Services (Multi User). By Region 2007-2013
6.2.7 Total Mobile Casino Wagers (Multi-User)
Figure 6.6: Total Wagers ($m), Mobile Casino Services (Multi User). By Region, 2007-2013.
Table 6.9: Total Wagers ($m), Mobile Casino Services (Multi User). By Region, 2007-2013.
6.2.8 Total Mobile Casino Gross Win (Multi-User)
Figure 6.7: Total Mobile Casino Gross Win ($m) (Multi-User). By Region 2007-2013
Table 6.10: Total Mobile Casino Gross Win ($m) (Multi-User). By Region 2007-2013
6.2.9 Total Mobile Casino Wagers (All Services)
Figure 6.8: Total Wagers ($m), Mobile Casino Services (All Services). By Region, 2007-2013.
Table 6.11: Total Wagers ($m), Mobile Casino Services (All Services). By Region, 2007-2013.
6.2.10 Total Mobile Casino Gross Win (All Services)
Figure 6.9: Total Mobile Casino Gross Win ($m) (All Users). By Region 2007-2013
Table 6.12: Total Mobile Casino Gross Win ($m) (All Users). By Region 2007-2013
6.3 Mobile Lotteries
6.3.1 The Market for Mobile Lottery Participation
i. Users Who Buy Lottery Tickets via Their Mobile Phone
Table 6.13: Percentage of Mobile Phone Users Who Play Lottery Games via Their Mobile Phone. By Region 2006-2013
Figure 6.10: Mobile Users (m) Who Take Part in Lotteries via Their Mobile Phone –By Region 2007-2013
Table 6.14: Mobile Users (m) Who Take Part in Lotteries via Their Mobile Phone. By Region 2006-2013.
6.3.2 Mobile Lottery Average Monthly Wager
Figure 6.11: Average Monthly Wager ($) Per User, Mobile Lottery Services. By Region 2007-2013
Table 6.15: Average Monthly Wager ($) Per User, Mobile Lottery Services. By Region 2007-2013
6.3.3 Total Mobile Lottery Wagers
Figure 6.12: Total Wagers ($m), Mobile Lottery Services. By Region, 2007-2013.
Table 6.16: Total Wagers ($m), Mobile Lottery Services. By Region 2007-2013
6.3.4 Total Mobile Lottery Gross Win
Figure 6.13: Total Mobile Lottery Gross Win ($m). By Region 2007-2013
Table 6.17: Total Mobile Lottery Gross Win ($m). By Region 2007-2013
6.4 Mobile Betting
Table 6.18: Percentage of Mobile Phone Users Who Engage in Betting via Their Mobile Phone. By Region 2006-2013
Figure 6.14: Mobile Users (m) Who Place Bets via Their Mobile Phone. By Region 2007-2013
Table 6.19: Mobile Users (m) Who Place Bets via Their Mobile Phone. By Region 2006-2013
6.4.1 Mobile Betting Average Monthly Wager
Figure 6.15: Average Monthly Wager ($) Per User, Mobile Betting Services. Regional Forecasts 2007-2012
Table 6.20: Average Monthly Wager ($) Per User, Mobile Betting Services. By Region 2007-2013
6.4.2 Total Mobile Betting Wagers
Figure 6.16: Total Wagers ($m), Mobile Lottery Services. By Region, 2007-2013.
Table 6.21: Total Wagers ($m), Mobile Lottery Services. By Region, 2007-2013.
6.4.3 Total Mobile Betting Gross Win
Figure 6.17: Total Mobile Betting Gross Win ($m). By Region 2007-2013
Table 6.22: Total Mobile Betting Gross Win ($m). By Region 2007-2013
6.5 Total Market for Mobile Gambling Services
6.5.1 Total Mobile Gambling Wagers
Figure 6.18 Total Wager ($m) on Mobile Gambling Services, 2007-2013
Table 6.23: Total Wager ($m) on Mobile Gambling Services, 2007-2013
6.5.2 Total Mobile Gambling Gross Win
Figure 6.19: Total Gross Win ($m) on Mobile Gambling Services, 2007-2013
Table 6.24 Total Gross Win ($m) on Mobile Gambling Services, 2007-2013

7. Recommendations

7.1 Recommendations for Regulators
7.2 Recommendations for Operators and Vendors
7.3 Recommendations for Service Provider

8. Technology

8.1 Introduction
8.2 2G
8.2.1 Communication Technologies of 2G
i. GSM
ii. TDMA
iii. CDMA
iv. D-AMPS
8.2.2 Data Services
i. SMS
a. The Working of SMS
Figure 8.1: SMS Message Flow
b. Types of Messaging Services
- Mobile-originated SMS
- Mobile-terminated SMS
c. Premium-rate SMS (PRSMS)
8.3 2.5 & 2.75G
8.3.1 Communication Technologies of 2.5/2.75G
i. GPRS
ii. EDGE
iii. CDMA2000
8.3.2 Data Services
i. MMS
a. How Does MMS Work?
Figure 8.2: MMS Application Services
b. MMS Services
- MMS Entertainment and Information Services
Figure 8.3: Nokia’s 6280 3G Handset Supporting Video Streaming
c. Personalisation
8.3.3 The SMS/MMS Value Chain
Figure 8.4: SMS/MMS Value Chain
8.4 3G
Figure 8.5: 3G Access Technologies
Figure 8.6: Percentage of Mobile Users Who Own 3G Devices, December 2007 (Selected Countries)
Figure 8.7: Global 3G Subscriber Base, December 2007 (255.7 million users)
8.4.1 UMTS
Figure 8.8: Evolution of UMTS
i. WCDMA
ii. EV-DO
iii. TD-SCDMA
8.5 Beyond 3G
8.5.1 HSPA
8.5.2 3GLTE
8.5.3 CDMA2000 1x EV-DO Revisions A and B
8.5.4 UMB
8.5.5 Mobile WiMAX 802.16e-2005
Figure 8.9: WiMAX Timeline
8.6 Mobile Technologies Compared
Table 8.1: Comparative Chart of Mobile Technologies
8.7 Other Enabling Technologies
8.7.1 Wireless Internet Technologies
i. WAP
a. The Development of WAP
b. The Future of WAP – Where is WAP Heading?
Figure 8.10: Future Path of WAP
ii. The i-mode Alternative
Figure 8.11: NTT DoCoMo, i-mode Subscriber Growth (m) and i-mode Penetration of Total User Base (%) 2000-Q2 2008
iii. dotMobi
8.7.2 Languages, Platforms and Operating Systems
i. Languages
a. Java
ii. Platforms
a. J2ME
b. BREW
iii. Operating Systems
a. Palm OS
b. Symbian
c. Windows Mobile
d. Android
8.7.3 Other Relevant Technologies and Standards
i. MP3
Figure 8.12: MP3 Phones: Nokia N91 and Sony Ericsson K800
ii. MP4
iii. MIDI
iv. Bluetooth

Companies Referenced

2ergo,  3 UK, 32Red, America Movil, Apple, Aragua Lottery, Bell Canada, Bet365, Betfair, Blue Square, bwin, Camelot, Casinos Austria, Cecure Gaming, Cellectivity, Chartwell Technology, China Mobile, China Unicom, Corporation Galena, CTIA, Cyber Lotto, De Lotto, Dialog Telekom, Dialogue Communications, Digital Orchid, Etisalat, Flirtomatic, Gamcare, Gpay, Grupo MVTV, Hong Kong Jockey Club, Hutchinson Essar, Intertops, KK Games, Ladbrokes, LMT, Lottomatica/GTECH, Managed Gaming Solutions, mBlox, Mfuse, MIG, Million 2-1, Mobile Telesystems, MobileAware, MoviStar Peru, MTS, NetPlay, Netsize, Nokia, O2, Ofcom, Oger Telecom, Openlot, Opera Telecom, Orange, Orascom Telecom, Paddy Power, Paramount Digital Entertainment, Payforit, Phantom Fiber, PhilWeb, PhonepayPlus, Platinum Play, Playtech, Poker Million, Premier Bet, Probability,
Rogers Wireless, Selcom Gaming, Sky Bet, Sony Ericsson, Sperospel, Spin Palace, Spin3, Sporting Bet,  Stan James, SwissLos, Tele2, Telecom Italia, Telefonica, Telenor, TeliaSonera, TELUS, Tiscali, T-Mobile, Victor Chandler, Vimpelcom, Vodafone,  Wild Jack Mobile Casino, William Hill, Win Gaming Media, WinOne, Wireless Information Network, World Poker Tour, YoSpace, Zain, Zone 4 Play, Zong