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Aug
14th

Bingo Providers Keeping an Eye on Currency Exchange Rates

Probably the last thing internet bingo players think about is currency exchange rates and how they affect the online bingo industry. Currency exchange rates can fluctuate wildly wreaking havoc in international markets. Despite the ongoing global recession the online bingo industry has flourished and grown and is now a billion dollar a year industry employing thousands. During the past two years online bingo has expanded into new markets most notable Scandinavia and Spain. Recent reports indicate that the online bingo industry is ready to move into the lucrative Italian gaming market. Thanks to rules set by the European Union regarding online gaming online bingo players in Europe and the UK are protected from unlicensed fly by night casinos and bingo sites.

While currency exchange rates may not cross the mind of the average online bingo player they do have an effect on the industry. Earlier in the year concerns about the UK elections put downward pressure on the English pound which fell below the critical $1.50 level. Since then the pound has risen slightly but is well below historical levels. While exporters may benefit from a weaker pound it has resulted in decreased profits for the online bingo industry. Online bingo providers must raise large amounts of capital to launch an online bingo site and some of this capital is raised in dollars and Euros.  A falling pound will affect the bottom line of bingo providers since most online bingo players reside in the UK. The UK remains the world’s largest online bingo market.

Should the pound fall due to continuing economic uncertainties it could be disastrous for many of the newer bingo sites. Reduced profits caused by a weak pound could cut marketing expenses resulting in a potential loss of new players. Online bingo sites could also be forced to cut back on jackpots and prizes because of a weak pound. Fortunately the pound seems to have stabilized but providers of internet bingo games are keeping a sharp eye on currency exchange rates.