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Recession in the US & UK – Good or Bad for Online Gaming?

You have affiliate marketing questions. CAP has answers!Category: Polls & SurveysRecession in the US & UK – Good or Bad for Online Gaming?
tomgalanis asked 1 year ago
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?

20 Answers
Andy – bet365affiliates answered 1 year ago
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…

suntou answered 1 year ago
My record showed there were less real depositors to play through my affiliate account. If you have not enough money to survive, will you play casino?

Dendrite answered 1 year ago
This is a very difficult question to answer and it’s untested territory.

We haven’t had a recession in the broadband internet age before

I think bricks and mortar casinos will certainly be affected, but the online question is a tough one.

For sure, people will stay in at home rather than going out to restaurants, taking long holidays, going to casinos, but the question is, what are they going to do when they are at home, trying not to spend cash.

Most likely, they will be at home on the internet and that gives a big temptation to start playing online

My feeling is that we would see more players taking up online gambling rather than going to casinos, more people trying to ‘earn’ money by playing skill games, poker etc, but also that high rollers will tighten their belts.

Bad for those that rely on high rollers, good for those that attract the small depositors trying out online gambling as an entertainment?

One thing for sure, it’s going to be interesting

Professor answered 1 year ago
100% Agreement with The Gooner on all points.

TheGooner answered 1 year ago
I can’t see how a recession could ever be considered good for business – no matter what business you are in.

Less disposible income will mean tightening of belts – and will mean that the entertainment dollar is squeezed.

I hope that people do NOT turn to slots in desperation as we’re all aware of the real profit margins at casinos and we know that is never likely to work. I always push the line do not bet more than you can afford to lose – and I’d hate to see affiliates promoting the “easy money” desperation line.

Regarding professional gamblers – maybe that market is unaffected – but if they’re really making a profit then they’re not good for the affiliate business either are they?

CK – Schalk answered 1 year ago
I’m going for bad on this one, with the obvious “less disposable income” argument.

However, the other angle might be that if players only had 60% of their gaming budget, they might rather take it online, as it’s cheaper, and also offers free bets / bonuses.

German Expert answered 1 year ago
@Dominique 160123 wrote:

I have to disagree with that – most of my players like to play low variance games for entertainment and have a budget to spend on it every month.

Here are a few definitions of gamble:


To engage in any activity in which money is put at risk for the purpose of making a profit, and which is characterized by some or most of the following (in approximately descending order of importance)………..

n 1: money that is risked for possible monetary gain
2: a risky act or venture
v 1: take a risk in the hope of a favorable outcome; “When you
buy these stocks you are gambling” [syn: chance, risk,
hazard, take chances, adventure, run a risk, take
a chance]
a. To bet on an uncertain outcome, as of a contest.
b. To play a game of chance for stakes.
2. To take a risk in the hope of gaining an advantage or a benefit.

There might be a entertainment factor in gamble, but the essential is to take the risk, invest your own money to gain more money.

A while ago I was reading a article about gambling market in South Africa. Apparently they have biggest gambling market in terms of % of GNP. People are queuing up on a friday evening play lotto after getting paid. Most of them shoulld rather buy food with this money.

In a recession (I can’t stand using this term) you might need to change how to market a gambling product, but the dream will remain the same: winning money through taking a risk <span title=” title=”” class=”bbcode_smiley” />

Dominique answered 1 year ago
@German Expert 160122 wrote:

At the end of the day, you gamble to win money and not to have fun.
German Expert

I have to disagree with that – most of my players like to play low variance games for entertainment and have a budget to spend on it every month.

They play for years on end and are a nice and stable player base. Should their budget shrink, I will feel it.

So far, so good on that count.

I think likely there will be a fall off in new players entering the market first.

German Expert answered 1 year ago
I am going for good!

First of all gambling and prostitution are the oldest industries mankind knows.
My believe is that riche people stay rich in good and bad times. Therefore the whales will still gamble. The middle class is suffering in bad times and the desperation of making money (through gambling) will even increase. We are talking about gamblers. At the end of the day, you gamble to win money and not to have fun.

I see the challenge is that competiton has been steady growing in the last 5 years I am in the business. The golden days are over. As an affiliate or casino you need to up your game.

German Expert

fswj answered 1 year ago
It’s very bad. For example, right now 1 US dollar is less than 7 Chinese RMB in the for ex market. After deducting all process fees, players only get around 6 Chinese RMB for 1 US dollar. It’s less attractive for Chinese players to play online .

It’s worse for poker players because the main currency of poker rooms is US dollar.

If online gaming companies take Chinese RMB deposits, it’s not a problem.

I hope more companies add Neteller(1-PAY) as a banking option.