iGB Intelligence reports Jumio-IGB Abandonment in Gaming White Paper

2 What’s the cost to the industry of abandoned registrations? Gaming operators have always faced high marketing costs, on average they account for around 25% to 27% of an online operator’s revenue base. “ Abandonment is an absolutely huge issue. It can cost us thousands to get a new player on board and we want to have minimum friction to get him to play. European sportsbook operator ” Such comments are revealing of the impact abandonment has on igaming operators. With marketing costs taking up close to a quarter of operators’ turnover, this illustrates just how important making customer registration work is for igaming companies. 6 http://www.androidslots.co.uk/regulations/online-gambling-revenue-licencing-changes/ If registration abandonment is as high as the consumer-derived statistic of 24% then as many as 1 in 4 registrations are being abandoned. In the UK alone, there are 5.9 million gamblers and this equates to lost revenue of £39 million.6 Although abandonment is a problem in many online industries, gaming operators spend more than their peers in other online industries on marketing, so every player that slips through the net is costing them dear. For example, in a trading update in July, 32Red said its cost per acquisition for casino customers had risen to £197, a substantial increase on the £180 CPA the company recorded in the same period in 2014 (although the group also recorded a 20% rise in net gaming revenues). Gaming operators have high However, the level of the CPA figure marketing costs, on average reveals how costly recruiting players is they account for around throughout the highly competitive online 25% of an online operator’s casino industry. revenue base. “ ” Mobile gaming registration and deposit abandonment benchmarking study 10

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