Online bingo has been one of the fastest growing sectors within the online gambling industry in the UK, with white label operators joining the competition. However, reports suggest that this growth has now slowed, mainly as the traditional offline bingo brands such as Mecca have gone online.

UK Online Bingo authority website BingoPort.co.uk reported that the number of people playing real money online bingo in the UK remained flat in the final quarter of 2008, with only a 1 percent increase in player numbers across the board. This follows a large increase of over 10 percent in the September quarter.

Scott Logan, Managing Director of BingoPort.co.uk explained:

“This is the first sign that the UK online bingo market is feeling the effects of both the recession and market saturation. It signals the beginning of what we see as a period of mergers and acquisitions across the industry.”

It was also reported that overall prize values in online bingo rooms decreased for the first time ever as the number of new players has dropped and players are spending less money online.

Scott Logan added:

“This report will not come as a surprise to many industry experts who have been predicting this downturn for some time. We still expect to see strong spending in advertising by the bigger operators as they work to extract the maximum value out of their existing customer base.”

This has been put down to the fight for market share from the big players. Scott Logan said:

“We’re seeing more innovative marketing campaigns from the likes of Foxy Bingo, Gala Bingo, Ladbrokes Bingo and Mecca Bingo. These operators, among others, have introduced a range of different concepts to their real money sites. One of the biggest and most successful of these is free bingo games in between their pay to play games on new sites such as Cheeky Bingo and Minxy Bingo.”

Logan expects this trend to continue:

“In addition, the well established operators are pulling out all of the stops to keep their players from going to competitors. We expect to see a cutthroat 2009.”

White label operators will have to find more innovative ways to try and outwit the big players in the UK bingo market. Things are set to get ugly.

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