E-Commerce Times: “Facebook Bets on Real-Money Gambling in UK”

. . . “This site will make Facebook some money — but it won’t be a huge revenue stream for the company for a very simple reason,” Larry Chiagouris, a professor of marketing at Pace University’s Lubin School of Business, told the E-Commerce Times.

. . . “This site will make Facebook some money — but it won’t be a huge revenue stream for the company for a very simple reason,” Larry Chiagouris, a professor of marketing at Pace University’s Lubin School of Business, told the E-Commerce Times.

That reason is that people who know anything about gambling won’t use the site, he said. “Facebook is keeping 30 percent — and every gambler knows that while the house keeps a certain percentage of the winnings, it is rarely as high as 30 percent.”

People not accustomed to gambling, but who like social networks and social gaming, will flock to a Facebook gaming option, said Chiagouris.

Some of these people will leave once they do the math and move on to other sites, assuming they want to keep on gaming, he said. Some will drop out entirely, especially if they lose one too many games. Some will stay on Facebook for the social aspect — the ability to play with friends and other people on the site.

One thing Facebook did that was brilliant, suggested Chiagouris, was move into gaming by way of a simple and popular game such as bingo. “Everyone knows how to play it, making it an easy window into online gaming.”

Read the article by E-Commerce Times.

Leave a Reply

Your email address will not be published. Required fields are marked *