Why US broadband will hold back egaming
span style="">The growth of the international egaming industry relies on two factors: the liberalisation of complicated gambling laws in certain territories; and affordable internet for all to maximise traffic to sites. But regardless of the success of any egaming bill in Congress, Broadband Expert commercial director Rob Webber argues, egaming there will be crippled by expensive connections...
THE growth of the international egaming industry relies on two factors: the liberalisation of complicated gambling laws in certain territories; and affordable internet for all to maximise traffic to sites.
In the UK, the egaming industry has a fairly healthy outlook. It is comparatively straightforward to register and operate an egaming business, and broadband usage is increasing rapidly due mainly to competitive pricing.
Mobile broadband users – those using a USB mobile broadband device with their laptops, as opposed to mobile internet access on a mobile (cell) phone – in the UK have grown massively in the last three years.
This is undoubtedly good news for the egaming industry.
However, the global egaming industry cannot rely on the same feverish take up of mobile broadband in other territories to help maximise site traffic as it can in the UK.
With mobile broadband consumer sites spanning three continents, Broadband Expert looked into mobile broadband usage in the UK, Australia and the US.
While mobile broadband sales in the UK and Australia have risen in the last two to three years, the comparison site has not seen the same rate of growth in USB-based mobile broadband sales in the US.
Closer inspection reveals that Americans pay three times more than Brits for mobile broadband tariffs, and up to eight times more for the USB stick required to get online remotely.
A typical two year mobile broadband contract in the UK costs $552, compared to $1,440 in the US ““ a massive $890 price difference – so it’s not surprising that mobile broadband usage in the US is low compared to other regions.
Remote gaming businesses that are taking a bet on US federal law changing to liberalise egaming legislation in the near future should consider macro-environmental factors that will affect any future performance there.
Low take up of mobile broadband in the US will undoubtedly hinder the egaming economy from reaching its full potential once legislation has been relaxed, and the international egaming industry should call for the radical pricing differences between certain countries to be urgently addressed if it is to prosper.