How Covid Affected Igaming
In modern history, the world economy is currently under one of the biggest threats. The impact of Covid-19 is still not easy to measure, and the iGaming industry is an affected one for sure. After a few months of confinement, it seems that the figures of Covid-19 are slowly improving all over the world, and this means that the governments are preparing series of actions to take things to normal and end confinement, but there is still no reliable calendar.
Impact of Covid-19 on iGaming
In the current situation, iGaming is not immune to it, but as it is an online industry, therefore, it can continue to flourish and has the ability to adapt. Most of the businesses are now ready to embrace the changes that this global pandemic has brought to the people, and this might be the beginning of something totally different and exciting. The following are some of the ways through which Covid-19 impacts the iGaming sector.
For those people, who operate online casino platforms, including games like poker, slots, and various other table games, it seems like their revenue is set to increase. We have seen an exponential increase in the online gaming platforms and the people locked down at home with very limited activities to have, this particular sector is expected to grow more.
In the long run, there is highly possible that we may see a decline in revenue as it depends on the economic fallout of tough precautions on lockdown and also the closure of various businesses. Whether we see the peak of Covid-19 and trough, the continued growth of iGaming remains to be seen, and it basically depends on how long the pandemic continues.
No sports betting
The sites that predominantly offered sports betting are feeling the pinch for the last few months. We can see that most major sporting events have been canceled that include basketball, football, and the 2020 Olympics. This obviously means that those who are offering online sports betting have to drum up new revenue streams, and they have to do it fast.
There are some providers that have fallen foul of the law, and the regulators have condemned them for advertising the bets of obscure markets like table tennis or the football league.
As we see, the number of people who use online gambling platforms during the Covid-19 lockdown is on the increase, and there are lawmakers who are calling for some tighter rules that must be put in place. We have seen in the UK that the regulators have urged the gambling firms to impose a cap of GBP 50 per day on sports betting, as it is feared that punters may resort to riskier wagers.
Other than the UK, the Dutch regulators have also warned against any legal and illegal operators that use the pandemic to mop up the casino users that are land-based. Different operators around the world are being monitored in order to make sure that they do not exploit the crisis by using any unethical marketing ways so that they can drive more sales to their platforms.
The end of land casinos
Due to Covid-19, only in the United States, almost 92% of the land casinos have been closed because of the measures that have been taken to fight the pandemic. In order to comply with the stringent social distancing, the land casinos in Europe have also been closed because of the rules imposed by the governments.
We have witnessed a decline in the land-based casinos for several years as most of the gamblers prefer mobile and online alternatives while sitting at home. Therefore, the global Coronavirus pandemic seems to be a signal of the final nail in the coffin.
The prevalence of mobile
Under the current scenario, there are many people that are still confined at home, and mobile is considered a preferred medium for them to access any online offer, and in general, consume any type of entertainment and content. For certain iGaming operators, the mobile already means that they will have even more than 80% of turnover, and in the coming years, it is expected to grow.
The possible surge of esports betting
Esports has been considered as one of the promises for the industry for many years. Though the reality is that the betting figures are still very low as compared to any standard sport, and in the current situation, the lack of relevant sports events is a great opportunity for the operators to push for Esports events. Some people would not have noticed, but this particular category is growing double-digit each year and have one of the most attractive and widest audiences at present.
The increase in virtual betting
Virtual betting has traditionally been a minority product, but it has now established vertical and is very attractive for certain customers under the current situation. In the past few months, it was noticed that the operators had a vivid interest in launching or improving the virtual betting offer.
A paradigm shift
When we combine so many factors, it is not very difficult to predict that the iGaming industry is heading towards a paradigm shift without any doubt. The increased number of users, less interest in sports betting, and competition among the online platforms may change the face of the iGaming industry.
More innovation in the future
Younger generations of customers who go for high quality, are high-tech savvy and go for engaging games will be able to drive forward innovation in this sector. In addition to that, one can also expect to see more iGaming platforms springing up that offer more immersive and varied types of different gaming options to the players.
We can also see a strong focus on teleworking and remote working with the employees who work from home while engaging the software to facilitate their work. This is no doubt quite a positive step, but it may bring with it a number of challenges that include compliance, security, and cultural adaptations.