Is the Online Bingo Industry Slowing Down ?

Could the online bingo industry be in a slump? A recent report showed a slump in bingo business activity. A report by the bingo portal Bananas for Bingo showed that the average number of bingo site launches fell to its lowest level in two years. Since the online bingo industry has been so dynamic many are wondering what the reason are for the slump?

Many analysts use new product launched to determine the health of a particular market. According to data collected over the past three years, fall and winter (September to December) are usually the busiest months for bingo site launches. Figures from 2012 showed a sharp drop in site launches. Statistics show that:

In the 12 months leading up to January2012 54 new bingo sites were launched. An average of 4.5 sites was launched monthly.
By October 2012 the numbers had fallen to less than three; the lowest level since September 2010.
11 bingo sites were launched between September and November 2012. When compared with figures from 2010 the decline was 30%.
The summer of 2012 was exceptionally slow and only three sites were launched between June and August.  When compared with figures from 2011 the decline in launched reached 60%.

The figures show that during 2010 and 2011 the bingo industry appeared to be in a “boom stage.” New operators joined the industry and existing operators launched new bingo brands. Many operators targeted specific demographics and created new brands and offered enhanced player experiences. New product launches are few and far between and bingo players will not enjoy the rapid pace of site launches as in past years.

Some industry observers say that the bingo industry is moving from an expansion phase into a contraction phase. Some experts have suggested that the UK bingo market is saturated with too many brands. Currently there are about 350 operators competing for players in the UK. Many players and operators are moving away from computer based gaming to mobile platforms. Several experts have pointed out that most of the growth in the bingo industry can be credited to mobile gaming.