Italian iPoker Market Trending Lower In 2015

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Monday, September 14th, 2015 | Written by Adam Brown

The Italian gambling regulator AAMS has stopped sharing data regarding the performance of online gaming sites in the country, leaving many industry insiders to wonder about the state of Italian iGaming. Now finally, we’re getting a glimpse into how online gambling sites in the country are faring, and it seems that Italy is closely reflecting worldwide trends in terms of online poker decline, but overall iGaming growth.

Cash v Tournament iPoker

Statistics regarding the iGaming industry in Italy were shared with an Italian news agency at the end of August, providing insight into how online gambling sites based in the country performed during the first eight months of 2015. Revenues from cash poker games dropped by 24 percent to €56.6 million ($64.2m) compared to 2014 levels for the same 8 months. Tournament poker revenues, however, which was classified under “skill games” are currently 1.3 percent higher at €48.2 million ($54.6m) for the first eight months of this year, helped along by PokerStars’ Spin & Go games. This means Italians internet poker sites are now generating almost as much from tournaments as they are from their cash game offerings.

One bright spot is that cash game results over the past one month have experienced a sharp 32 percent improvement up until August 15th, with analysts pointing towards PokerStars’ latest marketing campaign featuring soccer stars Cristiano Ronaldo, and Neymar Jr. as the cause. The advertising blitz is the biggest in the site’s history, and has utilized the soccer players’ Facebook accounts to reach millions of fans across the globe, including the Italian market. Ronaldo’s account shows 105 million likes, and Neymar Jr. has 53 million likes, with Rational Group Interim CEO Michael Hazel explaining:

“This is the biggest PokerStars marketing campaign in history and we are excited to launch with exclusive distribution on Facebook. Both videos show how each of the stars love the game of poker in their own unique way.”

iGambling Up 9%

The data regarding iGaming wasn’t all bleak, though. In fact, the overall picture painted of the Italian online gambling market was rather rosy. Gross revenues have risen 9 percent, an increase of roughly $439 million since last year. Casino game revenue grew by 27 percent and sports betting revenue grew by 18 percent, although bingo revenues appear to have dropped by 8.8 percent over the past year.

How Italy Stacks Up to Europe and the World

When viewed in isolation, the data out of Italy may seem puzzling, but when you take the rest of the online gaming market in Europe into consideration, it becomes clear that the statistics reflect a wider trend. Since 2012, online poker revenues across Europe have fallen by 20 percent. At the same time, online casino gambling is growing rapidly with revenues increasing by about 15 percent every year. Similarly, the U.S. online gambling market is expected to grow to roughly $2.7 billion by 2020 even as online poker revenues fall.

What’s Behind the Numbers?

There likely isn’t just one reason for the decline in online poker revenues in Italy. Player interest is likely one major part of the problem. Many industry insiders believe that online poker went through a trending stage, attracting large numbers of players who simply wanted to try the game that everyone was raving about. Now, interest in various types of poker has dwindled, leaving die-hard players still at the virtual tables.

Another contributing factor to iPoker revenue shrinkage is segregation. Italian players cannot play against international competitors, so total and individual liquidity are often low. Even on Italy’s most popular site, PokerStars, there is typically only an average of 1,200 people playing. The second most popular site, iPoker.it, averages total liquidity of just 280 players at any given time. One idea floated around to improve the situation involves Italy sharing its player pool with those of other regulated markets, such as France and Spain, and as gaming lawyer Giulio Coraggio explains:

“The online poker market is facing considerable difficulties worldwide and in countries like Italy, Spain, and France the impact of such crisis might even be higher given that they are closed loop markets. But if international liquidity sharing will be allowed, the scenario might change considerably.”

The Future?

The future isn’t completely bleak for online poker in Italy and elsewhere in the world. Industry insiders predict that in Europe online poker revenues will soon stabilize and remain steady, which is good news for sites like PokerStars and iPoker.it that operate in Italy.