by Ryan D. Jaeger
After enjoying massive growth since 2004, the UK poker market is on
the decline, it was revealed in a new report this week.
The research said that the poker market in the United Kingdom actually
stopped growing in 2008 already, and will continue to shrink this year by up to
7%.
But while the figures initially look disappointing, analysts are rushing to
reassure the industry that things need to be looked at in proportion.
For example, the market actually grew a staggering 72% between 2004 and 2007,
and the new figures could thus be the sign of a market stabilizing itself after
such a sharp increase in growth.
Also to be taken into account is the fact that the United Kingdom, along with
the rest of the world, went through a recession, the effects of which we are
still feeling today.
"Poker revenues have clearly peaked," said one analyst. "The recession is the
most obvious culprit, with around a third of poker players now playing less
often of for lower stakes because of the economic downturn."
One third of the players in the UK poker market said that they do not play as
frequently as they did a year ago, and if they played, their stakes were
generally smaller.
While the average UK poker player wagered £345 on the game per year in
2007, that number has dropped 20% to £281.
Analysts have also pointed out that other factors may have influenced the
market, such as controversial rakeback promotions and the general lack of time
that is afforded to today's stressed out office workers.
"There may be some inherent problems that the industry has to address," said
the analyst. "Rakeback promotions, for one thing, are minimizing margins and
this shows the emphasis is on customer numbers, not the profit generated per
customer. Lack of time is another factor impacting on play, possibly suggesting
work pressures in the current recession are having a toll on players' free
time."
