The gambling industry has been greatly affected by the coronavirus and many companies will not survive the economic impact that the pandemic is causing. High street bookmakers and casinos have been the most affected due to the forced closure of their premises due to the lockdown. Before the virus hit, these types of retail gambling establishments had been seeing a big drop in revenue and with zero money coming in over the next few months, many will not survive. In this article, I will look at the trends so far in 2020 and what the state of the industry will look like at the turn of the new year.
We All Have Less Money
The economic impact of the pandemic has greatly affected casino sites in the UK which means that millions will be out of work and have no source of income. Players having less money to gamble with therefore revenues will be down. Experts predict it could take up to a decade to fully recover from the effects of the virus so only companies that started in a good financial position that has a strong online presence will survive.
Land-based Model Failure
One of the major impacts the virus has had is the closing of all retail premises and group gatherings. It means that high street bookmakers and land-based casinos have had to shut. The costs of keeping themselves running while the shutdown occurs are going to be too much for most players in the industry. Many will receive government help in the form of zero business rates and deferred loans but this will not be enough to keep the doors open once the lockdown has ended.
Online Gaming & Casinos Seeing Record Numbers
One of the positives for the gambling industry is that online casinos are seeing a large increase since the lockdown has begun. With no sporting events taking place, gamblers who usually bet on sports do not have any betting opportunities so they are instead playing casino games. With only a hand-full of sporting events expected to take place in 2020, this trend will continue throughout the year.
We are only at the start of the virus crisis and the worse yet is still to come. The first wave of the plague did not kill many, it was the second wave where millions died around the world. Hopefully, the coronavirus will not follow this path and by the end of the year things will be back to normal but with such a highly contagious disease that has no cure to be under control by the year’s end, it will take a lot of luck along with the sacrifice of all.
The gambling industry is going to have to adapt if it wants to survive this crisis. Most land-based models will not survive and places such as Las Vegas are going to require billions in government bailout if they are going to reopen their doors. With almost all industries requiring financial help, it is unlikely that the gambling sector will get the required amount it needs to rebuild but only time will tell what happens next.