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

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.

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 :wink-wink

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

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

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.

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

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 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! :hattip:

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. :sarcasm:

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Maybe I should have voted bad?

i think it will impact at the lower end and the top end of the scale. there´ll be enough players to maintain the industry – it doesnt matter how much people earn – they want to be entertained. and in a recession, decadence tends to be privatized – which is where online gaming comes in.