Private equity investments and IPO’s have become commonplace occurrences in the online gambling marketplace. This industry has been generating revenue for some time now, and is considered to be a mainstream business which is increasingly competitive. Leaders in this industry are feeling the heat, and CEO’s are under pressure to deliver dividends on investments – this means good results. We see it all the time, CEO’s are being replaced right, left and centre when they do not meet targets for profits in line with shareholder expectations.
In the more than a decade since eGaming became a multi-billion industry sector, the early days saw a boom, when exponential periods of growth were the norm. These growth periods were driven in the most part by dedicated and talented entrepreneurs who used innovation to feed customer appetite, and were essentially operating private businesses. This has all changed and so have market conditions. Living the dot com dream in the online gambling industry is now a thing of the past.
Early industry leaders were once merely overseers of a thriving business which required very little in the way of answerability. These leaders are now in the spotlight and under more pressure to deliver handsome rewards; rewards which are harder to come by. CEO’s are required to work harder, and a ‘perfect storm’ scenario, seems to have come to a head.
Steep growth curves are more difficult to maintain under current market conditions. This industry has become conditioned to stellar growth conditions; but together with market saturation, UIGEA, the global recession, Stock Exchange flotations, consolidations and the continued need for new and more sophisticated technology, some CEO’s have risen to the challenge, while many others have not. Many just don’t appear to have the skill-sets which are required in next generation industry which is rapidly being engulfed by corporate public limited companies. It will be interesting to see how this situation develops over the next few years.Written by Neha A