The effect of COVID-19 was felt in virtually all industries in the world, the gambling industry is no exception. In the UK, the fortune of the UK gambling market as a result of COVID-19 is mixed.
Some subsectors of the gambling industry in the UK did not record financial loss, some of the best online casinos recorded a profit and a growing number of players. Other sectors were not so lucky like the sports betting sector, thanks to the shutting down of major sporting events and leagues in the UK and the world.
This market decline did not last too long and once the major events returned, the sportsbooks recorded the pre-COVID-19 numbers again.
The Effect of COVID-19 on The UK Gambling Market
When COVID-19 hit the UK and began to spread at an alarming rate, the UK government was forced to move to stop the spread. One of the measures was the shutting down of major sporting events.
This singular action caused a massive wave of panic in the UK gambling industry. These professional sporting events such as the English Premier League was an important source of revenue for gambling establishments.
Both online and offline gambling establishments felt the impact of COVID-19 and the measures rolled out to tackle it. Betting companies were the worst hit with their sources of income running dry quickly. Other options like e-sports and sports fantasy by no means attract the same numbers as the live games.
Online casinos were an exception to this negative general pattern. Most of the best online casinos thrived during this period, unlike the land-based casinos which had to shut its doors to the crowds that accounted for its success.
With more people staying indoors, online casinos became an attractive option for gamblers to play their favorite games amid the lockdown restrictions imposed by the UK government. All they need to play online casinos is a smartphone or other internet-powered devices.
Popular casino resorts in the UK experienced a decline in revenue because of social distancing regulations. Travel bans have also eliminated gambling tourism which amounts to the loss of a huge amount of gambling funds.
With declining revenues, some gambling enterprises both offline and offline in the UK laid-off workers it could no longer pay or find roles for.
Here are some of the key effects of cOVID-19 on the UK gambling market.
1. Changing Gambling Habits
The most obvious effect of COVID-19 is the change in consumer habits. With gamblers indoors, the appealing hubs of the UK gambling industry are online. This explains why online casinos are thriving even while other sectors of the gambling industry are in decline.
Online gambling now appeals to players who would prefer to visit land-based gambling enterprises to play their favorite games but cannot because of COVID-19 lockdown restrictions.
Since COVID-19 cannot spread online like it can in a packed football stadium or casino, online casinos represent the safest option for gamblers. Players can play their favorite casino games such as slot machines, poker, and table games online. There is also the option of Live Dealer games to capture better the casino betting experience.
Even after COVID-19, many players who were forced to gamble online will likely remain fans of it because of its ease and accessibility.
2. SportsBooks Taking The Hit
If anyone would have told you that in 2020, a viral disease will break out and cause all major sporting events including the popular English Premier League to be postponed indefinitely, you would have laughed it out.
Maybe not the viral disease because there have been several outbreaks in recent years but the suspension of major sporting events including the EPL. The last time the EPL was suspended was way back during World War times.
With sporting events canceled or suspended, the attractive live sports bet that represented a massive share of sportsbooks revenue is no longer there. As expected, sports betting companies recorded a loss of revenue.
While the live sports from major leagues were off the charts, some players turned to e-Sports. These e-Sports are going in popularity and helped cover some of the losses caused by the suspension of major league events.
Post COVID-19 Effect on The UK Gambling Market
With major sporting events resumed, sports betting is now stable and recording profits. The biggest beneficiaries of the COVID and post COVID periods are the online casinos. The gains generated by online casinos in the COVID-19 period look permanent and set to stay for the long haul.
Post COVID-19 will see further growth in e-Sports betting, more focus on online gambling, and the introduction of new technological innovations such as Virtual Reality and Augmented Reality.
