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Online Casino Revenue Paradox

Betsson.com has done something right in the marketing department considering the second quarter results show a healthy increase in revenue despite a loss in active online casino gamers. Betsson is well established in the industry and offers a wide array of internet gambling sites in multiple markets and multiple languages. The company announced that it was cutting some costs over the past quarter, but was still doing great financially – which is certainly backed up by the great second quarter results. The online casinos industry is spreading quickly in existing markets and carving out a place in many new markets as well.

Betson.com both develops internet gambling and gaming sites as well as operating a handful. The company has sites within many of the segmented sectors of the internet gambling industry, including: online casinos, internet poker, sports betting, lottery, betting exchange, internet bingo, and more. Betsson has a interesting marketing strategy in that it plans to spread into new markets is not entirely contingent on partnerships and acquisitions, instead, a major part of the plan is to let the online casino and betting sites grow organically in new markets. That is not to say that Betsson has no plans for industry related acquisitions, instead though of using acquisitions as a main part of the plan, the company plans to let the quality and popularity of the site grow naturally with acquisitions as a secondary priority. A few of the main online casinos the company operates: CherryCasino.com, CasionEuro.com, Bettson.com and a handful of others.

The company reported its second quarter results and surprising to many in the online casino industry, plans for future growth did not hinge on acquiring new customers through marketing and freebies – instead much of the budget went to incentives and offers for current players and new product development.

And that strategy seems to have worked considering the site reported a 25 percent decrease in active players and yet strong profits for the first half of 2007. The company already offers a full language French site and has plans for full sites in other key demographics as well in the near future.