CROWDFUNDING AND CROWDSOURCING FOR THE GAMBLING INDUSTRY

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CROWDFUNDING AND CROWDSOURCING FOR THE GAMBLING INDUSTRY

  1. 1. CROWDFUNDING AND CROWDSOURCING FOR THE GAMBLING INDUSTRY http://gamcrowd.com/ What will be the impact of Crowdsourcing on the gambling industry? White Paper Outlook for the Crowdsourcing market According to a 2012 report by Massolution called Enterprise Crowdsourcing: Market, Provider and Worker Trends published on crowdsourcing.org, the market for services provided by the “crowd” had been growing at over 75% per annum. In 2011, it was estimated that crowds it was worth around $375m worldwide and was still growing at the same rate. Assuming that the rate of growth has continued until now, the market is likely to be worth around $2bn in 2014 and current statistics suggest that there are plenty of signs that that growth is continuing. CROWDSOURCING INDUSTRY REVENUE GR There are estimated to be around 3bn people online, and that number is expected to reach 5bn by 2020. A growing number of that global online workforce are increasingly happy to seek work through a crowdsourcing platform; either as their main source of income or as a supplementary wage. The same crowdsourcing.org report suggested that there were 6.3m workers engaged in crowdsourcing in 2011, and that number has been growing at 100% per annum. TOTAL NUMBER OF CROWDSOURCING WORKERS Source: crowdsourcing
  2. 2. CROWDFUNDING AND CROWDSOURCING FOR THE GAMBLING INDUSTRY http://gamcrowd.com/ As we will discuss later in this paper, some of the world’s most innovative companies such as Amazon, HP and Netflix use crowd sourcing, not just to reduce costs but to create a competitive advantage. This paper examines the opportunity for operators within the Gambling industry to exploit the crowd. Outlook for the Crowdsourcing market within the Gambling Industry To date there is no actual data for the amount of crowdsourcing within the gambling industry and anecdotal evidence is that it has yet to take hold. However, where it is happening it is reported under generic industry groupings such as Media and Entertainment, which account for about 20% of the global crowdsourcing market * (*Crowdsourcing.org) According to The Economist magazine report in Feb 2014, the global gross win [=revenue?] for the gambling industry is around $450bn and is expected to grow to around $550bn in 2018. The TV business (including advertising spend) is a similar size to the Gambling Industry with the Economist estimating its revenues are around $400bn, which is about a quarter of the global Media and Entertainment industry, an industry that Crowdsourcing.org estimates to account for 20% of the worldwide crowdsourcing
  3. 3. CROWDFUNDING AND CROWDSOURCING FOR THE GAMBLING INDUSTRY http://gamcrowd.com/ market. Although the methodology for arriving at these numbers is not ideal, a simple extrapolation suggests that the Gambling Industry should be capable of accounting for around 5% of the worldwide crowdsourcing market. That would put the potential market at around $100m in 2014. At GamCrowd, we cannot find much evidence that the Gambling industry represents 5% of the market and thus we believe there is a considerable opportunity for the industry to use the crowd much more. The opportunity to fill this gap and drive further innovation and growth is why GamCrowd has launched an online crowdsourcing and crowd funding platform and has recruited a crowd of gambling professionals to act as our industry’s “crowd.” Suitability of Gambling to Crowdsourcing The rise of crowdsourcing in recent years is an online phenomenon – the arrival of web 2.0, social media, cloud and mobile computing have all made it possible. It benefits industries more that deal in digital ideas and data. We believe that the gambling industry has a tremendous opportunity to benefit from the economics of the crowd, probably more so than any other industry. Gambling has been at the leading edge of the internet since the late 90s – modern gambling businesses are global, multi platform, multi language, multi currency and extremely complex. The online gambling industry has been at the very forefront of peer to peer technologies, social media integration, data analytics, SEO, social media marketing and affiliate networks. The advance of Bringing Your Own Device is transforming the land-based industry as is the use of cloud-based systems to better manage those estates. There is a long history of start-ups innovating within the industry and our experience at GamCrowd is that there is a healthy pipeline coming through. This paper looks at a number of possible uses that the Gambling Industry could make of the crowd and aims to provoke some early experiments with crowdsourcing amongst managers. In it we go through all of the various tasks that we believe, the industry could do better via the crowd. We have included some background information which we think will be of help to those that are new to crowdsourcing. Benefits Flexibility and scalability: The crowd allows you to turn on a huge army of workers at the click of a mouse and turn them back off when you are finished. They bring a variety of skills, languages, perspectives and ideas and you can access them for as long (or as short) a time as you need them. Speed to market: Post a job on a crowdsourcing site and you will, if things go well, get multiple proposals within hours. Per task workers are focused on delivering quickly and efficiently. If you cut out the time taken to search for multiple options to get a quote, you can get work done quicker. Also, crowd workers do not spend time commuting, sitting in meetings or writing reports for their boss. They simply churn out the work. At GamCrowd, we have been consistently delighted at the speed of turnaround of our tasks.
  4. 4. CROWDFUNDING AND CROWDSOURCING FOR THE GAMBLING INDUSTRY http://gamcrowd.com/ Reach: In a global business such as online gaming, the crowd can let you operate every language and country that you target to the same standard as your home market. The reach plus the costs will enable new markets to be targeted that traditional methods would have ruled out on cost grounds. Originality: The crowd brings the benefits of diversity and localisation to your business across many departments such as technology, product, content and marketing. Costs: Cost is often quoted as the number one reason for using crowdsourcing. It is a huge benefit but in our opinion it is not the number one benefit. Cost s are lower because you only pay the cost of each task. Some of the costs you don’t pay are management overhead, property and IT costs and employment costs. Per task and micro task models usually assume a set time per task and the crowd worker will only charge for a few seconds or a few hours of work. You are unlikely to have to commit to a long contract with a consultant. The market is also global and workers have to compete against cheaper jurisdictions; GamCrowd’s brand guidelines were produced by a young lady in Pakistan and we were delighted with the outcome. We have used the crowd extensively to build our business and we have been amazed at how little cash we have used to achieve some big results.

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