Fri Dec 13 2013 17:45 ET
Currency Exchange and Bingo Players
Many online bingo players, especially those in the US play at online bingo sites located outside the United States. The UK is a hotbed of online bingo activity and several of the largest online bingo providers are located there. Most online bingo players do not think of currency exchange rates while playing but they can have an effect on the online bingo industry.
This month, 888 holdings, a major player in the online bingo industry, reported a drop in revenue due to the global economic crisis and extreme volatility in currency exchange rates. The dollar strengthened by 14% against the British Pound and 16% against the Euro hurting sales once they were translated into US dollars. The CEO of 888 holdings said that currency exchange rates accounted for 95% of the drop in revenues.
Publicly traded online bingo companies have all reported decreases in revenue with a resulting drop in share prices. Although online bingo companies have not seen any change in customer behavior, unfavorable currency exchange rates are having a significant effect on profits. The British Pound is at a historic low against the US dollar and while that may be more favorable for US customers it is wreaking havoc on the UK economy.
Although online bingo providers report an increase in the number of customers and increased wagering the exchange rates are draining profits from online gaming companies.
There is a positive side to all this especially for US citizens. With extremely favorable exchange rates the time has never been better to take that dream European vacation. In fact the recent strength of the Dollar has made many travel destinations affordable for Americans. Countries mentioned as having favorable exchange rates for American Dollars include, Mexico, Australia, Bali, most of Europe and the United Kingdom.
Online bingo players should insist that they be paid in US dollars if it is at all possible. Players who are paid in Pounds or Euros could easily see their winnings depreciate quickly because of sudden changes in currency exchange rates. Its getting crazy out there so enjoy your game of online bingo but be sure to check those exchange rates!
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