Online gaming companies actually prosper from the recent U-turn in advertising legislation, really?

[PR: London, 28th July 2007] With just weeks to go before the full implementation of the Gambling Act 2005 in September, last weeks announcement by the newly appointed culture secretary James Purnell to review the relaxation of the ad ban took the online gaming world by surprise. Bullet Business asks Dominic Mansour, CEO, Bingos.com and Merrick Haydon, MD, Sports Revolution Marketing, both speakers at the upcoming 2nd Annual Online Bingo Summit – taking place in London on the 25th – 26th September, about their reaction to the news.

“Initially I am very surprised” said Mansour “Many gaming companies would have invested significant advertising budgets in preparation of the change in September – this for them will be wasted money”

Haydon suggests that it was a matter of time; “This comes as no surprise following the new governments renewed look at the super casino” He continues “It is going to hit both the online and offline industry as well as having a huge knock-on effect to related industries such as ad agencies, media buyers and the sponsorship world”

Expanding further both Mansour and Haydon go on to speak openly about the effect that a U-turn in the removal of the ad ban would have on their own businesses and highlight that its not all bad news.

“Fortunately, bingo companies already have an exemption enabling us to advertise more freely than other forms of harder gambling”, Mansour points out and continues, “essentially, this becomes an advantage for us as we maintain our unique advantage over other forms of gambling”.

Haydon agrees that the U-turn could potentially hold a silver lining for his business “Ironically the move will have a positive effect on Revolution as our business focuses on providing intelligent and creative off-line campaigns for gaming brands, including sports sponsorships and events.” He continues with the example of “horse racing where Revolution has first hand experience of brands having switched their budgets from race sponsorship to TV advertising. Many UK racecourses will now be in a stronger position once again to negotiate sponsorship packages which provide terrestrial TV coverage to targeted audiences who have a propensity to bet, wage or game both on and offline”.

So it’s not all doom and gloom for all in the online gaming space it seems however, what about the wider online gaming chain? Bullet Business asks how the gaming & gambling industry would have reacted to this news.

“I imagine with shock and disappointment” says Mansour “especially to leave it to such a late stage when many companies will have already made significant investment in preparing for this change”

Haydon highlights the resilient nature of the online gaming space “Like any commercial Industry it will react badly to the news as business and marketing plans for the coming short to medium term have already been out in place jeopardising significant investment.

However, if the gaming industry has one overriding characteristic it is a resilience to adapt quickly to new trading conditions and new legislation. The challenge is for gaming brands to remain creative and to utilise all components of the marketing mix, including sports sponsorship; the fastest growing marketing sector”.

You can find out how online bingo firms have reacted to this news and more at the 2nd Annual Online Bingo Summit [www.bulletbusiness.com/bingo] which takes place at Londons Regents Park Marriott on September 25th – 26th. With well over 75+ companies already confirmed, the summit will provide you with a unique opportunity to understand the dynamics of this explosive market.

Contact

Ravi Virpal
Director
Bullet Business

t. +44 (0) 20 7375 7162
e. ravi@bulletbusiness.com
w. www.bulletbusiness.com/bingo