COVID
How COVID-19 has shaped the gaming and betting landscape
Koen Vanpraet, CEO PXP Financial looks at the impact of COVID across the industry
WELCOME TO THE DIGITAL WORLD Earlier this year, our I discussed the future of the
iGaming sector, commenting that it was likely to see impressive growth this year. These insights were seemingly accurate, although not for the reasons I originally thought, which were more about the new innovations the industry was seeing with VR and eSports receiving more recognition. As a result of COVID-19 and the lockdown measures that followed it, many moved to online gaming and with them, all the big opportunities for success.
SeanPavonePhoto/Adobe Stock
and it looked like the gaming sector would continue its upward trajectory in 2020. Unfortunately, the unexpected arrival of the COVID-19 virus flipped everything on its head. Almost every sector was impacted in some way, and the gaming and betting sectors were no exceptions.
W 6 FEBRUARY 2021 GIO
Casinos, especially those located in major, tourist-reliant cities, like Macau, saw the biggest impact, with reported revenue loses by as much as 97% year-on-year due to the impact of COVID-19. However, it wasn’t just casinos that suffered, as the suspension of most sports meant that bookmakers also saw losses. William Hill reported a 57% year-on-year decline in net revenue due to the virus, and in August, Veikkaus, the Finnish monopoly operator in this space, projected a loss of over €300m in profits in 2020.
There’s no escaping the fact that the gaming and betting industry has been hugely impacted by COVID-19 however, in other areas of the sector the story has been very different.
hen 2020 started, the gaming and betting industries were on track for a great year. ICE London 2020 was showcasing some promising new technology
In April 2020, a month into the UK lockdown, The Stars Group announced it was expecting a record revenue of around US$735 million for Q1 2020, up 27% from the previous year, due to a surge in players as a result of COVID-19. Then, in June, 888casinos upgraded its 2020 profit expectations thanks to a daily revenue climb of 34% year-on-year in H1. These are not the signs of companies suffering, as a result of the pandemic. These revenues aren’t just good for the companies, they’re good for individuals looking for work. COVID-19 has seen an increase in unemployment across many sectors, but for iGaming businesses, the increase in users creates a need for more staff. As early as April 2020, iGaming businesses were being encouraged to hire new talent to keep operations running and growing.
SPORTS VS. ESPORTS
As of writing, the threat of COVID-19 is not over and in the UK we are currently in the midst of a second lockdown. However, cases have been decreasing in many countries and governments worldwide have been encouraging a return to normality for many industries if possible. This has caused a big turn-around for the traditional gaming and betting industry.
The biggest change came in Q3 2020, with the return of major sports leagues, and thus the return of betting activity. The return of major sports such as football and the reopening of bookmakers has increased betting activity globally with GVC noting that betting activity is nearing pre-pandemic levels. However, despite this return the iGaming scene has not deterred in its growth.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50
