Wednesday, 28 October 2009

Gambling goes mainstream

Interesting to read how video game producer Sega recently secured an online gambling license with the Alderney Gambling Control Commission.

Is this a sign that gambling is becoming an increasingly mainstream activity? Or is it just that Sega are finding the video games market tough and are looking for new high growth markets? I suspect the latter.

Certainly, there are plenty of synergies between a video game producer and a producer of gambling games. And I'm sure the online gambling cash flows are tempting to senior management at Sega. However, there are also some crucial differences. There is a special skill in separating a punter from his cash in a game and I wonder if Sega can really compete in an already crowded marketplace? It will be interesting to see if Sega's experience with pachinko games and parlors can help them break into the market.

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