I raised this topic at CAC and there are certainly arguments for both sides. The question arose in the Beer Session when the panel made reference to the average age of players in land-based casinos, notably in Vegas, stating unanimously that when you look around, everyone seems to be somewhat ageing...

... So, to get to the point, the senior citizens occupying the slot machines in Vegas will have lived through recession and, on the whole will have turned to the casino as a means to an end, rather than for the pleasure or thrill of it.

Online gaming has, since its inception, been seen as an entertainment industry. Despite obvious cases to the contrary, social and legal opinion has fallen on this side of the fence. What if, as many predict, the US and the UK (and other key gaming territories) enter recession or at least continue to experience a significant economic slowdown? How is online gaming, hence our own livelihoods, affected?

Yes, there may be a greater propensity for people to gamble, but will we lose that entertainment tag that is so crucial in justifying marketing and operating activity in key territories? How will this impact affiliate marketing?

I voted good, not really sure why but my thinking goes something like this...

mmmm crisps, beer, vodka....Recession, I think as people shy away from the high street and cut their spending in other areas online wont be hit as hard as people might think. My reasoning for this is because you dont use physical money in online gambling so it is easier spent but then worried about later...when its too late, mwaahahha. Sorry getting carried away with this one.

But, I think think really I am sitting on the fence on this one but voted GOOD.

...

Maybe I should have voted bad?

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I don't think it is going to affect online gaming that dramatically, but the effect it is going to have will be negative. People claim that the masses tend to veer towards so called "sin" entertainment forms during recession as a form of relaxation in a highly stressful financial environment. More people visit casinos, go down the pub, etc, but this could be due to the fact that they have nothing better to do, plus it's a chance for some social interaction that they just wouldn't get if they sat on the sofa at home.

Online gambling is more of a commodity or convenience, and these are the areas which are more usually hit by a recession...

I would argue that players will have less disposable income, which is bad for the industry - whether we care to admit it or not. There have been suggestions about increased propensity to gamble during weaker economic periods, but I don’t subscribe to that view as it’s based on assumptions. If one looks at eastern European markets (emerging markets) where the player value is still low - due to the fact that players don’t have cash to throw around. (compared to wealthier Western European players) I believe the same principle could apply to devaluating players in recession. Perhaps not to such an extent, but we will find out soon enough...

The good news is that online gaming industry is growing in terms of new player numbers on a daily basis, and we still might have USA and Asia to come on board at some point, so don’t quit just yet!

Have to go on the Bad vote on this one.

My humble view on this is that when disposable income decreases you cut down on luxury products (even though a higher % of your disposable is spent on luxury products if my memory serves me right). So maybe more would gamble but total value of money spent on gambling would decrease.

Gut feeling is also that it would affect the industry badly.

I think it has to be bad - People that re effected will have less money to spend and other priorities and the people that aren't hit by the possible "recession" will be tightening their belts. Speaking personally I don't really remember the Thatcher recession except that my mate's dads got made redundant but I am making sure I tuck a bit more money away now as a just in case precaution because I want to know that I am sorted in case teh worst happens.

My mate that works in the pub trade told me they are getting screwed at the moment with 7 pubs closing a week but this could just be part of a changing pattern in terms of what we want to do in the evenings.

All a bit doom and gloom - Personally I think its all a bit hyped up and believe the media is encouraging a recession as we once again are having another great year and aren't seeing a slowdown across any of our business' in and out of gaming

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The media is the root of all evil!! I don't think it will be bad but I do think the whales fall off for a few and we will see more of the smaller players being loyal to the casinos.

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bonusstreak - As always, media coverage has the potential to exaggerate but for me, living in Spain and being paid in pounds, it becomes very difficult to ignore what is happening to the UK economy at the moment. Day by day I walk past currency exchange booths in Gibraltar and look in horror as the £/€ exchange rate drops lower and lower...

OK, I have the dubious luxury of getting to see the financial balance between the UK and Europe at first hand and it doesn't exactly add up as defining proof of a recession, but it bothers the hell out of me! I am sure that increasingly there are more and more examples for pretty much every tax payer in the UK and US where something is changing, becoming more expensive for them to do... like filling their car up with petrol, perhaps.

It certainly isn't media hype in my opinion, but I guess how much it affects you on a personal level all depends on your own personal situation

I don't doubt there is a downturn but I really do beieve it is encouraged by the media - e.g. house prices dropped 2% the other day which yes is significant but put against a 51% rise over the last 5 years is actually a natural thing for the economy to do as it does need to rebalance itself.

I think when the papers are reporting on a daily basis doom and gloom people start worrying and stop spending or buying houses, etc. and this naturally has a knock on effect which can only be negative.

I know this is very basic but I have seen the papers almost trying to force a recession through over the past 18 months next door to their editorial on teenage pregnancy, knife crime and immigration but hey I am going off subject

back on the Euro - Geeez - That is killing me!!! Amsterdam was more expensive than London! WTF

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Recessions tend to negatively impact prime players (Whales, Big Fish). Less money to spend = less money to play with.

Smaller players and poker players probably arent effected terribly so they keep the market going.

I believe if the economies were better then our industry would be that much stronger.

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