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National Study by Magid Associates Projects Skill-Based Gaming to Surpass $9 Billion in U.S. Revenue by 2017

NEW YORK, May 8, 2014 /PRNewswire/ — The U.S. skill-based gaming market will grow dramatically, surpassing $9 billion in annual Revenue by 2017, according to a national consumer study conducted by Frank N. Magid Associates. Skill-based games are determined by players’ ability rather than chance, differentiating them from casino games or poker.  Cash competitions in skill-based games are legal in most U.S. states and countries and enjoy a celebrated tradition ranging from PGA golf tournaments to the New York City Marathon.

“Millions of Americans already compete in cash competitions though mainly through offline sports like bowling, golf or marathons,” said Mike Vorhaus, President of Magid Advisors, a unit of Frank N. Magid Associates. “What will really ignite market revenue growth are the legal online opportunities for skill-based cash competitions that are emerging on smartphones and tablets, revealing an enormous untapped sector of the industry.”

Driving factors in the growth of cash competitions are the rate of mobile device penetration, which is expected to reach market saturation of 90 percent by late 2016 and increasing awareness of the availability of cash competitions. Among consumers in the study who own a smartphone or tablet today, more than 40 percent said they are interested in playing skill-based mobile games for money.

The research, conducted on behalf of Skillz Inc., found that eight percent of the U.S. population currently plays skill-based games for money online, valuing today’s market at $2.5 Billion. By considering all factors, Magid Associates concludes this market will grow by more than 40 percent year-over-year reaching $9 billion by 2017, with the majority of the growth coming from an emerging mobile market for cash competitions.

About Frank N. Magid Associates:

Frank N. Magid Associates, Inc. is a leading research-based consulting firm that helps its clients become more profitable by solving problems and helping them take advantage of opportunities. We are unique because for over 55 years we have carefully studied human behavior and how communication affects it. We possess an uncanny understanding of what and how marketing and communication will motivate people to behave in certain ways. We leverage this keen understanding of consumers, our practical operational expertise and network of industry leaders to help clients across industries successfully develop and market products and services. Frank N. Magid Associates serves its’ clients through offices in Minneapolis, New York, Los Angeles, Chicago, Dallas, and Marion, Iowa.

SOURCE Frank N. Magid Associates, Inc.