Governments To Consider Online Gaming

April 17th, 2010

In order to provide a much needed boost to tax revenues, governments around the world may consider easing up on current online gaming restrictions, according to a new KPMG report: Is it a Gamble or a Sure Bet?’

The global report says that the likely move by some countries to bring Internet gaming revenues on-shore, could soon see the online gaming market go mainstream.

Mark Summerfield of KPMG in the UK and global head of gaming said: “Governments in many parts of the world are rethinking their opposition to online gambling. We believe that, following the inevitable beginning difficulties, a sustained period of re-regulation is likely that will see the market flourish.

What will be unusual for this Internet driven sector is that, at least in the short term, a physical and therefore taxable presence may be required in order to secure gambling licenses within different countries. This will bring challenges for online businesses that don’t have large international structures or brand recognition.”

The global online gaming market is expected to grow by 42 % to US $30 billion by 2012 from US $21billion in 2008 (H2 Gambling Capital), and there is big potential for further growth in the sector, as some of the biggest markets – such as the US, China, Japan and South Korea – currently band online gambling. As the popularity of both gambling and online entertainment continues to grow, the online gaming market is without a doubt an attractive area of expansion for gaming software developers, casinos, industry newcomers, media and investors.

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