Covid-19 pandemic’s global impact has hit some business sectors harder than others. The gambling industry, in particular, struggled initially in the early stages of the crisis. However, the online portion of the industry managed to maintain its ability to trade, which has not just led to a sustained trade level, but to an increase in trade, too. It has been already predicted by analysts in a recent online publication that the impact of Coronavirus around the world which has led to the shutdown of casinos, could lead to faster growth of the online casino as well as the sports betting industry. Countries have been imposing lockdowns to control the spread of Covid-19 and this has spurred an interest in online gambling for individuals involved in the industry, as well as attracting new customers.
With casinos shut down almost all over the globe and travelling severely restricted, more people are turning to internet gambling. A report on online betting from the state of New Jersey shows the industry rose to 66% in March alone. This is a boost of $65 million in revenue. Popular games include slots, Poker and Blackjack are being played by players all over the world and new players are also getting lured towards the attractive world of these casino games. Even in countries like India where gambling is considered a bit of a taboo subject, popular online casino sites like 10cric, ComeOn Casino and Pure Casino are generating a lot of traffic and players are flocking to these sites more than ever in search of their favourite casino and card games.
Online gambling revenues are set to explode this year, helped by a need to self-isolate and keep distance, thanks to Covid-19. In all likelihood, more countries may legalize online gambling not only as a way to generate revenue, but also to discourage people from congregating in casinos. Here is a full breakdown of how the online casinos have managed to earn even during the Covid-19.
An increase in searches
One of the most immediate signs of the impact caused by the pandemic after it started to transform the world was how land-based businesses struggled. The gambling industry was one of those areas of industry that found acclimating to the new world hard initially, due to the number of casinos operating land-based venues. However, the popular online casinos soon saw an increase in the number of customers. While a lot of industries have struggled, experts predict that the current short-term growth of the online gambling market will translate to accelerated long-term growth.
Sports betting has dried up
Over the last few months, we have seen almost every major sporting event being cancelled or postponed indefinitely. For example, the Tokyo Olympics were pushed back, and the European Championship was also postponed. The same applies to golf, soccer, tennis and many other global competitions. This leaves sports betting firms with very little to sell, of course, because the entire betting market is on a lockdown at a time when major brands, which also serve. After all, partners for many of these games are also experiencing a downturn in revenue.
Why turn to online casinos?
Millions of people have been confined to their homes these past few weeks to limit the spread of Covid-19. On one side of it, this has had tremendous benefits as countries have seen a drop in the number of new infections. The downside though, is that forcing people to stay indoors for so many months can lead to all manner of physical and mental health problems. The option to gamble online is seen by many as a welcome distraction in a time when stress levels may be high, as well as boredom, and anxiety.
Existing research tells us that boredom alone can lead people to gamble, and from the current trend, it seems like more people are looking for an escape during this crisis. While the future of physical casinos seems unclear at this time, online casinos are profiting from a plethora of games that will keep every type of client engagement.
Regular gamblers are gambling more
Individuals who spend a lot of time on online gaming websites and casinos are likely to visit online casinos even more during the coronavirus shutdown, according to a survey conducted during the crisis. The survey found that 41% of people with new accounts on gambling websites reported spending too much money, and about 35% said they were beginning to develop a gambling problem. A lot of this online gaming occurs on smartphones, so it is possible that when regular sports betting returns, a lot of people would choose to gamble on their phones instead of visiting a typical casino for games like Poker and Craps.
What is the future of online casinos?
The impact of coronavirus on economies of various countries over the long term will be severe. Some experts have predicted that this will eventually force more nations to look for alternative sources of revenue, leading to the legalization of online casinos across the board. One of the benefits here is that the roll-out of such online platforms is much quicker than building a traditional casino, and revenues can start rolling in as soon as the websites go live.
A bright future from a dark place
The future of the online casino industry is looking bright. As a result, online casinos operating land-based venues earned the revenue to cover for any short-term losses. This has also allowed stand-alone casinos to boost their revenue. This has had a knock-on effect on the growth of the industry. The year-end growth has not only increased, but the total online gambling revenue is also expected to grow by more than 13% by 2023. This could mean total revenue growth of around $90b for the industry. Given the significant financial burden, Covid-19 has put on the planet, the gambling industry could emerge much stronger on the other side. Apply to that the effects of emerging digital technologies like VR casino games and more advanced use of Blockchain titles, and the next five years could see online gaming become one of the dominant financial forces across the whole world.