Press Release, Dublin, 16 May 2002


ALATTO OFFERS SHORT ODDS ON MOBILE GAMBLING

Gambling represents lucrative opportunity for mobile operators

Gambling on mobile devices is set to become a significant revenue earner for gambling service providers and mobile operators according to a ground-breaking report from Alatto Technologies (www.alatto.com).

The research suggests that 4.5% of all global mobile users will gamble to some extent. According to Alatto, this will yield projected ARPUs (Average Revenues Per User) of EUR78 for operators and correspond to estimated sector revenues of almost EUR700 million by 2006.

Click here for an abstract and table of contents.

“Faced with eroding voice revenues, mobile operators need to boost their revenues by introducing data applications that are relevant to defined user segments. Although small in size, m-gambling represents a very lucrative niche for mobile operators”, said John Whelan, Head of Research at Alatto. “After all, it is far easier to generate guaranteed revenue from gambling than from many other data services including e-mail”.

Alatto identifies those with the greatest propensity to gamble on a mobile device as predominantly male, aged 25-39 years old. The report details a number of sub-segments with different motivations, risk and psychographic profiles.

According to Whelan, “at one extreme there are infrequent players who regard mobile gambling as an innocuous time filler or a more convenient way to play the lottery. At the other extreme are frequent, heavy gamblers who are motivated by the ubiquitous availability, isolation and anonymity of m-gambling. Given this diversity in behaviour and spending patterns, operators need to develop applications that are tailored to the needs of the different segments of gamblers”.

The report also highlights the unique benefits that mobile gambling offers to all types of player. Not alone is it more convenient than traditional methods but it offers the possibility to place a wager at any time and any place. For example, spectators at a sports event could place bets at half time or during the event at changing odds. With the application of CRM, gamblers’ interests and preferences could be learned and they could be alerted when a favourite horse is running or team is playing.

From a regulatory perspective, mobile gambling offers advantages over Internet based gambling. In particular, the unique ability to detect the location of a mobile phone allows the operator to determine if the user is within a jurisdiction where mobile gambling is licensed. This is vital as licensing authorities normally insist that it can be proven that customers are within the licensed jurisdiction.

Alatto also analysed the barriers and obstacles facing mobile operators. The single biggest challenge is the processing of payments as it needs to cope with payments-in for wagers and payments-out for winnings. Alatto believes that premium SMS represents a secure and convenient payment breakthrough for low value wagers such as lottery tickets. For more serious gamblers, a gambling account separate from the mobile device account will be the preferred solution in the short term. The gambling account can be replenished either by vouchers (like pre-pay mobiles) or by credit/debit card over a fixed line phone.

Given the high percentage of pre-paid mobiles used by minors, operators also need to ensure that sufficiently robust authentication is in place to prove that applicants are of legally eligible age.

For more information please contact:

John Kelly
Alatto Technologies Ltd
E-mail: press@alatto.com
Tel: +353 (0)1 209 0700


About Alatto
Alatto Technologies Limited is a leading supplier of consultancy on revenue generating services and applications in the wireless space.

Alatto is a privately funded company based in Dublin, Ireland and was founded in 1999. Clients include leading 2G and 3G telcos in Europe and Asia, suppliers of mobile applications, system integrators and enabling technology companies.

Alatto’s Research Division publishes top quality reports, which include in-depth analysis and unbiased forecasts on various aspects of the wireless industry. In addition, we provide custom research and strategy programmes for clients, helping them to identify growth opportunities and determine priority initiatives for implementation. In particular, Alatto can offer unique insights into mobile gambling as it designed and built Europe’s first live money wireless gambling site in 1999. Since them Alatto has successfully delivered SMS, WAP, and Java applications over GSM, 2.5G and 3G networks for gambling operators worldwide. For further details, please visit www.alatto.com