06
Sep
Online Gambling Company Looks to Reduce Overhead
Author: Chris // Category: Online Casino News
In just six months 2010 has seen the start of some major shakeups in the online casino and gambling industry. The economic climate in North America and Europe is, of course, playing heavily into this. However, there have been some other issue which have had a first hand effect on the industry. So far the year’s biggest event has been the World Cup soccer tournament held in South Africa. The World Cup is the world’s most watched sporting event next to the Olympic Games.
This year’s World Cup was the most heavily wagered World Cup’s in history. A profound effect was seen in the online gambling industry. While some online gambling companies were able to reap the benefits of exciting soccer tournament play and a high number of upsets and surprise wins, others actually say a dip. Companies like 888 Holding saw a decline in numbers because gamblers spent a large amount of time and money placing wagers on the World Cup and not as much on online casino games, bingo, or poker.
The other big news was the merger of the online gambling industry’s two biggest names, Bwin and PartyGaming. Again, this had impacted companies like 888 Holdings. 888 Holdings Chief Executive Officer Gigi Levy says that it may be time for his company to look at the same type of thing. They have already reports that consolidation is in the works for them. “We look at consolidation as one of the possible routes to realizing our full value and feel that longer term this is the direction the industry will take,” he stated.
The online gambling company has stated that they are going to try to reduce their overheads by $5 million to $6 million in the second six months of 2010. There could also be the possibility of a merger. Mr. Levy admitted that August proved to be better than July, but keeping the business profitable was his first line of business.
