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Online gambling and Colocation

  • September 2014
  • -
  • DatacenterDynamics

We expect that growth will be steady rather than a big leap forwards because such factors will result in the substitution of players from offshore to legalized markets, from land-based to online options, and from fixed to mobile devices. Demand will also be tempered as operators use technologies such as virtualization and flashbased storage to reduce their space and power requirements, even as the number of players and the amount of data collected from them grow. More so than in many industries, regulatory requirements influence where online gambling operators can locate their equipment, and they are also constrained by data protection laws.

While online gambling operators will move into new colocation markets as certain jurisdictions open up, we also expect they will move equipment and functionality between jurisdictions to reduce complexity and cost. The operators are likely to move front-end functionality to cheaper data center locations, including eventually the cloud, and make the best use of the equipment they are legally required to site in certain markets. Most markets that have regulated or are looking to legalize the online gambling sector already have mature colocation industries where operators routinely build capacity as demand dictates. We do not believe, therefore, that online gambling operators will be in danger of running into constraint issues in order to service a particular market, nor that operators will have to scramble to meet a sudden surge in demand.

Table Of Contents

Online gambling and Colocation
Executive summary
Definitions and parameters
A brief history of online gambling
Market size and potential
The pros and cons of legalized online gambling
Regulation
Technology and online gambling
Colocation needs
Contributors
Methodology
About the author

List of Figures
Figure 1: Market Share of Online Gambling GGR 2013
Figure 2: Population Comparison Between Europe and USA (in millions)

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