Mobile Entertainment:
Juniper Research Overview: The traditional methods of gambling such as casino gaming, betting on sports events and playing lottery games are increasingly being augmented with electronic forms of gambling, most notably using the Internet, where casino services and betting services are already generating substantial revenues. The next progression in this process is to transfer these and similar services to the mobile handset. The aim of this report is to provide analysis and opinion regarding the size and shape of this opportunity and identify which applications, content and service provision is leasing the way. Author details Dr Windsor Holden
Market Study February 2005
Table of Contents 
Executive Summary
1. Technology
2. The Opportunity for Mobile Entertainment
3. Mobile Gambling Market
4. Mobile Casino Services
5. Mobile Lotteries
6. Mobile Sports Betting
7. Hurdles & Regulation
8. Billing
(126 pages)
List of Figures
List of Tables
List of Forecasts
Glossary of Terms
Executive Summary 15
Introduction
Projections
Sector Focus
The Opportunity
What Mobile Brings to Gambling
Convenience
Ideal Target Market
Mobile Penetration Rates
Technology
Types of Gambling Services
Casino Style Gambling
Lotteries
Sports Betting
How Much is Mobile Gambling Worth?
The Hurdles
1. Technology 23
Introduction
2G (Second Generation)
SMS
Mobile Origination (MO) SMS
Mobile Terminated (MT) SMS
Premium Rate SMS (PRSMS)
The SMS Value Chain
MMS
How MMS Works
When MMS Does Not Work
MMS Services
MMS Information Services
MMS Entertainment Services
MMS Customisation Services
Other MMS Services
WAP
2.5G
2.5G and Mobile Video
The i-mode Alternative
i-mode structure
Japanese i-mode & Wireless Internet Growth
European i-mode Handsets
2.75G – EDGE
3G
Languages, Platforms and Technologies
Java and J2ME
BREW
Other Relevant Technologies
MP3
MP4
MIDI
2. The Opportunity for Mobile Entertainment 43
Introduction
What is Wireless Entertainment?
The Growth of the Mobile Market
Global Cellular Subscriber Market
Top 10 Mobile Operators by Subscriber Base
World’s Largest Countries, Population and Mobile Users
Asia Pacific Cellular Market Growth Forecasts
European Cellular Market Growth Forecasts
US Cellular Market Growth Forecasts
North America
South America
Rest of World Cellular Market Growth Forecasts
Global Cellular Subscriber Forecasts
Regional Forecasts
2.5G & 3G Subscribers
The Market for Mobile Entertainment
3. Mobile Gambling Market 57
Introduction
Some Betting Facts and Figures
Some European e-gambling Facts and Figures
How Does Mobile Fit In?
Convenience
Ideal Target Market
Types of Games and Services
Casino Style Gambling
Sports Bets
Lotteries
Betting Exchanges
How We Are Going to Break This Down
The Total Market for Mobile Gambling
4. Mobile Casino Services 69
The Concept
The Market for Mobile Casino Gambling
Mobile Phone Users Who Gamble Using Casino Type Services
Mobile Casino User Traffic
Mobile Casino Gambling Revenues
Mobile Casino Gambling ARPU
5. Mobile Lotteries 79
The Mobile Lottery Market
Mobile Lottery Services
UK: The National Lottery
The Market for Mobile Lottery Participation
Users Who Buy Lottery Tickets via Their Mobile Phone
Mobile Lottery User Traffic
Mobile Lottery Gambling Revenues
Mobile Lottery ARPU
6. Mobile Sports Betting 89
Introduction
Users of Mobile Sports Betting Services
The Market for Mobile Betting (Sports Events etc)
Mobile Betting User Traffic
Mobile Betting Revenues
Mobile Betting ARPU
7. Hurdles & Regulation 97
Hurdles
Trust
Processing of Payments
Technology
How People Gamble
Regulation
The US Model
Kyl Bill
The People vs Yahoo
The WTO Verdict
The UK Model
Self Regulation – The Operators’ Approach
Independent Mobile Classification Body (IMCB)
ICSTIS
International Self-Regulation
Pan-European legislation
Directive 95/46/EC: Processing Personal Data and the Protection of Privacy
The E-Commerce Sector Data Protection Directive (2002/58/EC)
The Distance Selling Directive (97/7/EC)
8. Billing 109
Introduction
Mobile Billing Market Drivers
Security, Privacy and Anonymity
Case Study: bango.net
Qpass
Cross Network Support for Billing
Who Should Build Portals?
Third Party Access to Portals
Bi-Directional Billing
Profitability
Billing Types
Interactive Voice Response (IVR) Based Billing
Standard SMS
Standard Browsing
Premium Rate SMS (PRSMS)
Premium browsing
Premium Rate Multimedia Messaging (PRMMS)
Stored Value Accounts
Via the SIM
The Next Generation of Billing Mechanisms
Heading for Billing Overload?
The Single Billing Dashboard
Security
Public Key Infrastructure (PKI)
Digital Signatures
Billing Laws and Regulations
Existing PRS Rules and Regulations
Other Relevant UK Laws
E-money Directive
Who to Turn to for Help
The Mobile Payment Forum
The Mobile Payment Services Association (MPSA)
NACHA
List of Forecasts
All regional forecasts cover five regions: North America, South America, Europe, Asia Pacific, Rest of World 2004-
2009
Cellular Market Growth
Asia Pacific Cellular Market Growth Forecasts
European Cellular Market Growth Forecasts
North American Cellular Market Growth Forecasts
South American Cellular Market Growth Forecasts
Rest of World Cellular Market Growth Forecasts
Mobile Entertainment Market
Total Mobile Entertainment Revenues Split By Region ($m)
Total Revenues from Gambling (Casinos, Lotteries & Betting) ($m) Regional Forecast
Total Revenues from Gambling split by Casinos, Lotteries & Betting ($m) Regional Forecast
Global Cellular Subscriber Forecasts (m)
Global 2.5G/3G Subscriber Forecasts (m)
Mobile Casinos
% Mobile Gambling Users who Partake of Casino Type Services. Regional Forecast
Mobile Gambling Users (m) who Partake of Casino Type Services Regional Forecast
Average Number of Casino Plays Per User Per Year Regional Forecast
Total Number of Casino Plays (m) by Mobile Gambling Users per Year Regional Forecast
Average Price ($) Paid per Casino Play. Regional Forecast
Total Revenues ($m) from Mobile Casino Gambling Regional Forecast
ARPU ($) for Mobile Casino Gambling – Regional Forecast
Mobile Lotteries
% Mobile Phone Users Who Buy Lottery Tickets via Their Mobile Phone Regional Forecast
Mobile Users (m) Who Take Part in Lotteries via Their Mobile Phone Regional Forecast
Average Number of Lottery Entries per User per Year Regional Forecast
Total Number (m) of Lottery Entries by Mobile Users per Year Regional Forecast
Average Price ($) Paid per Lottery Entry Regional Forecast
Total Revenues ($m) from Mobile Lottery Entries Regional Forecast
Table 36: ARPU ($) for Mobile Lottery Players Regional Forecast 2004-2009
Mobile Sports Betting
% Mobile Phone Users who Place Bets via their Mobile Phone Regional Forecast
Mobile Users (m) who Place Bets via Their Mobile Phone Regional Forecast
Average Number of Bets Placed Per User per Year by Gamblers via Mobile Handsets Regional Forecast
Total Number of Sports Bets (m) Placed by Mobile Users per Year Regional Forecast
Average Price ($) Paid per Bet Placed Regional Forecast
Total Revenues ($m) from Mobile Betting Regional Forecast
ARPU ($) for Mobile Betting Regional Forecast
List of Figures
All regional forecasts cover five regions: North America, South America, Europe, Asia Pacific, Rest of World 2004-
2009
Figure ES1: Mobile Gambling Revenues as a % of Total Mobile Entertainment Revenues ($m). 2004 & 2009
2004
Figure 1: The SMS Value Chain
Figure 2: T-Mobile’s Video News Application Launched in July 2003
Figure 3: Selection of Picture Phones (Orange SPV OE100, Nokia 7250i, Sagem MYX6)
Figure 4: Examples of WAP Phones: Sharp GX10i & Panasonic GD87
Figure 5: UK WAP Page Impressions, 2002-2004 (m)
Figure 6: i-mode Structure
Figure 7: Japanese Wireless Internet Growth, 1999-2004
Figure 8: Japanese i-mode and Wireless Internet Growth, 1999-2004
Figure 9: i-mode Users & Cellular Subscribers, September 2004
Figure 10: European i-mode Handsets: Mitsubishi M341i and NEC n31i
Figure 11: EDGE Handsets: Nokia 6600 & Motorola T725
Figure 12: Global 3G Subscriber Base, June 2004
Figure 13: MP3 Phones: Nokia 6230, Motorola V300, SonyEricsson P900
Figure 14: Nokia 3510 Mobile Phone
Figure 15: Cellular Subscribers, By Region, 1999-2003 (m)
Figure 16: Top 10 Mobile Operators by Subscriber Base, September 2004
Figure 17: World’s Largest Countries, Population and Mobile Users, 2003 (m)
Figure 18: Asia Pacific Cellular Market Growth Forecasts
Figure 19: European Cellular Market Growth Forecasts
Figure 20: North American Cellular Market Growth Forecasts
Figure 21: South American Cellular Market Growth Forecasts
Figure 22: Rest of World Cellular Market Growth Forecasts
Figure 23: Global Cellular Subscriber Forecasts (m)
Figure 24: Global 2.5G/3G Subscriber Forecasts (m)
Figure 25: Total Mobile Entertainment Revenues Split By Region ($m)
Figure 26: Total Revenues from Mobile Gambling (Casino, Lotteries & Betting) ($m). Regional Forecast
Figure 27: Total Revenues from Mobile Gambling (Casino, Lotteries & Betting) (US$468.0m) 2004
Figure 28: Total Revenues from Mobile Gambling (Casino, Lotteries & Betting) (US$19,320.5m) 2009
Figure 29: Mobile Gambling Users Who Partake in Casino Type Services (m). Regional Forecast
Figure 30: Average Number Casino Plays Per User Per Year. Regional Forecast
Figure 31: Total Number of Casino Plays by Mobile Gambling Users per Year (m). Regional Forecast
Figure 32: Total Revenues from Mobile Casino Gambling ($m) Regional Forecast
Figure 33: ARPU for Mobile Casino Gambling ($). Regional Forecast
Figure 34: Mobile Users (m) Who Take Part in Lotteries via Their Mobile Phone Regional Forecast
Figure 35: Average Number Lottery Entries per User per Year. Regional Forecast
Figure 36: Total Number of Lottery Entries by Mobile Users per Year (m). Regional Forecast
Figure 37: Total Revenues from Mobile Lottery Entries ($m). Regional Forecast
Figure 38: ARPU for Mobile Lottery Players ($). Regional Forecast
Figure 39: Mobile Users (m) who Place Bets via Their Mobile Phone. Regional Forecast
Figure 40: Average Number Bets Placed Per User Per Year By Gamblers via Mobile Handsets. Regional Forecast
Figure 41: Total Number of Bets (m) Placed by Mobile Users per Year Regional Forecast
Figure 42: Total Revenues from Mobile Betting ($m). Regional Forecast
Figure 43: ARPU for Mobile Betting ($). Regional Forecast
Figure 44: The Bango Interface
Figure 45: WAP Browse and Buy vs TXT Response
Figure 46: Leveraging the Banking Infrastructure
Figure 47: Main Components of Public Key Infrastructure
List of Tables
All regional forecasts cover five regions: North America, South America, Europe, Asia Pacific, Rest of World 2004-
2009
Table ES1: Industry Challenges
Table 1: Japanese i-mode and Wireless Internet Growth, 1999-2004
Table 2: i-mode Users & Cellular Subscribers, September 2004
Table 3: Global 3G Subscriber Base, June 2004
Table 4: Cellular Subscribers, By Region, 1999-2003 (m)
Table 5: Top 10 Mobile Operators by Subscriber Base, September 2004
Table 6: World’s Largest Countries, Population and Mobile Users, 2003 (m)
Table 7: Asia Pacific Cellular Market Growth Forecasts, 2004-2009
Table 8: European Cellular Market Growth Forecasts
Table 9: North American Cellular Market Growth Forecasts
Table 10: South American Cellular Market Growth Forecasts
Table 11: Rest of World Cellular Market Growth Forecasts
Table 12: Global Cellular Subscriber Forecasts (m)
Table 13: Global 2.5G/3G Subscriber Forecasts (m)
Table 14: Total Mobile Entertainment Revenues Split By Region ($m)
Table 15: World’s Betting and Gambling Market ($bn)
Table 16: Global Betting Turnover by Region ($m)
Table 17: Internet Gambling Revenues (£m)
Table 18: How Much Will be Spent on e-gambling (£bn)?
Table 19: Typical User of its Gambling Services:
Table 20: Games Popular with Online Gamblers
Table 21: Total Revenues ($m) from Mobile Gambling (Casino, Lotteries & Betting) Regional Forecast
Table 22: Total Revenues ($m) from Mobile Gambling Split by Casino, Lotteries & Betting Forecast
Table 23: % Mobile Gambling Users who Partake of Casino Type Services. Regional Forecast
Table 24: Mobile Gambling Users (m) who Partake of Casino Type Services Regional Forecast
Table 25: Average Number of Casino Plays Per User Per Year Regional Forecast
Table 26: Total Number of Casino Plays (m) by Mobile Gambling Users per Year Regional Forecast
Table 27: Average Price ($) Paid per Casino Play. Regional Forecast
Table 28: Total Revenues ($m) from Mobile Casino Gambling Regional Forecast
Table 29: ARPU ($) for Mobile Casino Gambling Regional Forecast
Table 30: % Mobile Phone Users Who Buy Lottery Tickets via Their Mobile Phone Regional Forecast
Table 31: Mobile Users (m) Who Take Part in Lotteries via Their Mobile Phone Regional Forecast
Table 32: Average Number of Lottery Entries per User per Year Regional Forecast
Table 33: Total Number (m) of Lottery Entries by Mobile Users per Year Regional Forecast
Table 34: Average Price ($) Paid per Lottery Entry Regional Forecast
Table 35: Total Revenues ($m) from Mobile Lottery Entries Regional Forecast
Table 36: ARPU ($) for Mobile Lottery Players Regional Forecast
Table 37: % Mobile Phone Users who Place Bets via their Mobile Phone Regional Forecast
Table 38: Mobile Users (m) who Place Bets via Their Mobile Phone Regional Forecast
Table 39: Average Number of Bets Placed Per User per Year by Gamblers via Mobile Handsets Regional Forecast
Table 40: Total Number of Sports Bets (m) Placed by Mobile Users per Year Regional Forecast
Table 41: Average Price ($) Paid per Bet Placed Regional Forecast
Table 42: Total Revenues ($m) from Mobile Betting Regional Forecast
Table 43: ARPU ($) for Mobile Betting Regional Forecast
Table 44: Bango Number Prices (per annum)
Table 45: The Three Principles of PRSMS
Table 46: How Digital Signatures Allow Security Services to be Applied to Billing Information
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