The Impact of COVID-19 on the Betting Industry

2020 was a very difficult year for the whole world. The coronavirus pandemic has had a serious impact on all areas of people’s lives and, of course, dealt a devastating blow to the betting industry. Read more in this article by Centreforum.org.

Overview of the situation

In some countries, most betting takes place at land-based betting sites, most of which had to close during the quarantine.

It may seem that the pandemic was in the hands of the owners of bookmakers who offer users to place bets on their sites. People around the world have switched to a remote work format, found themselves in quarantine or self-isolation. This means that they have more free time and the opportunity to go online more often, where they can bet online.

But due to the threat of the coronavirus spreading, major sporting events were canceled or postponed. People simply had nothing to bet on!

Also, players began to bet less often, because they had financial difficulties due to the economic crisis that was caused by the coronavirus. Some clients simply lost the ability to allocate funds for bets.

Simultaneously with the fall in profit from bets, shares of bookmaker companies fell in price. At the same time, large offices were able to get a lot of new clients by closing smaller competitors in a crisis.

According to statistics, in the spring, when the pandemic had just begun, most bookmakers predicted a colossal drop in income from 50 to 70%.

During the pandemic, many gamblers were forced to look for new entertainment. Some went into online gambling and started playing in casinos, some in search of adrenaline began to play the stock market. But it was only a temporary solution, because the customers of betting offices are a specific audience with their own preferences and requirements.

Separately, we note that the situation with the cancellation of traditional events served as a force for an increase in the volume of eSports bets. It confidently won leadership positions and, most likely, will retain them after the pandemic. Some of the bookmaker’s clients are convinced that it is easier to bet on eSports (no need to monitor the status of teams and individual players) and faster.

The situation in the industry right now

Now everyone is gradually adapting to new living conditions, in some countries restrictions have become less strict, and bookmakers also continue their activities. Those players who used to place bets on a regular basis returned to their usual offices.

Yet, according to some bookmakers, the recovery of the economy and the improvement of the situation with advertising budgets in betting will finally be completed only when all major sports tournaments are held as usual.