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COVID-19 And Its Impact On The Gambling Industry Financially

COVID-19 And Its Impact On The Gambling Industry Financially
The Siliconreview
20 August, 2020

Businessman, athlete, business owner, parent, teacher, or student. It doesn’t really matter what classification you’d fall into, you’ve likely been impacted by this COVID pandemic. Heck, you like most people are still being impacted by it. That being said, there are some people and industries that were hit harder than others. Take professional athletes, actors, gamblers, directors, and students for one. While the virus has turned everyone’s life upside down, it has really changed the way that these individuals live their day to day existence. As a gambler or casino operator, it is pertinent to understand how this crisis has affected your industry so that you can better provide for yourself or your consumers.

That’s exactly what this article is going to focus on. It is going to focus on the risks and trends that have changed in the gambling industry because of the COVID virus. This will not only make you an overall more informed individual, but it will help you develop a clearer picture week by week so you can combat such changes and risks. This will be especially important if you are one that relies on the industry for a paycheck, as many have come to do.

The General Consumer Trends

When this article mentioned consumer trends, we mean discussing how gamblers feel, the money that they have in their pockets, and how they are spending the biggest portion of their time. How are gamblers spending most of their money these days, given that most land-based casinos are shut down? Not to mention that there is little to nothing in the way of the sporting world going on. Savanta reports that 20 percent of the population is recognizing a decrease in their mental health due to the fear of catching the virus. There is also a concern for income, which only further raises tension and concerns for mental health.

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They are one of the best financial resources available. To help the public recover from the COVID pandemic, they offer free loan consultation services. No hard selling is involved. It probably goes without saying that as more people spend more time at home, there are also going to be changes in the way they engage in news and entertainment. This is even more particularly true amongst gamblers. A recent study conducted by YouGov shows that people who have gambled in the past four weeks were also more likely to spend more money online on entertainment, watch TV more, view more news online, and consume more on-demand entertainment.

Market Impacts

It probably doesn’t come as a huge surprise to anyone that this is where the biggest hits were taken. After all, all retail gambling venues closed on March 20th, including lotteries. These were activities and establishments that made up nearly 50% of the market. Now that they have ceased altogether, you can only imagine that it hurts the industry. Unfortunately as of right now, there are no numbers available, but the Commission is comprising data from March 2020 to March 2019, which should provide a clearer insight into the changing shape and size of the market.

However, you don’t need to be a genius or fortuneteller to know that things aren’t going to be looking good for the land-based portion. The online market, on the other hand, might see some of the highest highs that it's ever seen. This is always one way to make things a little sunnier.

Fewer New Customers, But Willingness To Try New Products

It is probably also pretty obvious that more people are going to be concerned and cautioned about how they are spending their money these days. While this wasn’t so much the case in the early stages, it is pretty evident now, given that more and more people realize they are living on their savings. This is why the crisis hasn’t attracted many new gamblers. In fact, according to recent studies, there has only been a 0.2 percent increase in adults that started gambling since the virus hit.

You’d think that there would be more, given that people are now seeking exciting means of entertainment. That being said, the pandemic sure doesn’t seem to have hurt the old gamblers. Not only are the old dogs continuing to gamble, but they are just as willing to try out new products. Some operators report as much as an overall 3 percent activity growth in certain player’s accounts. This is pretty impressive when you consider that sports betting have come to a grinding halt.