Ad agencies likely to make merry when online casinos go on a spending spree

Ad agencies in US might have a lot to be cheering about in the coming period. As internet gambling has been made legal newly in the Nevada State and a lot of others looking ever so likely to follow their suit, numerous casinos are being expected to go hard on their marketing area. This might mean that there will be a huge boom in this category of spending.

Simon Holiday, who is the Director of the H2 Gambling Capital, said, “There is a possibility of an investment close to the region of USD 4 billion in the online gambling sector over the period of 5 years in mainly the gambling sector. If it is to take place, this is going to be an amount, which will match the advertising investment of General Motors and the insurance firms in 2011.”

Ever since last year, the US online gambling industry has become a reality. This is mainly due to the power given by the US Justice Department to the individual states for legalizing online gambling. The first one to pass statutes for online gambling is Nevada. They are working through the regulation to make sure that the online casinos are legalized to the earliest. It is possible that the casinos will be more likely begin advertising in the month of January of next year. Meanwhile, several officials from the gambling industry believe that 10 more states including Delaware, California and New Jersey might pass their regulations in the coming future too.

Mr. Holiday has estimated that online gambling market might generate a gross of USD 1 billion in 2014 itself and more than 13 billion inside of a decade. However, to achieve this figure, they would need the support of the marketing sector.

He said, “There is a probability of an investment being made in the range of 20 – 30% of the overall net revenue of the company in marketing and advertising budget in the initial period, as it is going to be a fight to be the first one to grab the land.”

For gaining share in what is proposed to be one of the most lucrative markets in the world, in case a federal law is passed, online casinos are giving a strong boost to their marketing budgets. Major beneficiaries are likely going to be the agencies and digital media.

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