| 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.
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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.
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
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