Corona Virus: A Boost for Online Gambling?

How will the corona virus escalation, persistence and disruptions impact online gambling?

We break down 6 scenarios around how the corona virus can affect customer behaviour and the overall industry.

1. a Shift to Online

With Macau casino revenue down 88% in February and Vegas bracing for a heavy loss in tourism, the outbreak has started an unlucky streak for land-based casinos.

This will inevitably push more gamblers into the online ‘germ free’ space, and serve as a wake-up call for ground operators who haven’t developed their business online yet.

2. Accelerated Regulation

Countries with no established regulatory framework for online gambling (particularly in Asia, Africa and LATAM) might suffer losses in business and taxes.

Expect governments who have consistently refused to consider legalizing online gambling in their home territories being pressured to act; through stricter enforcement or regulation.

3. More Cash In Hand

The travel industry has already taken a huge hit from screening, restrictions and cancellations, with concern growing daily amid reports of new outbreaks.

This will reduce willingness to travel as people think twice before booking trips, leaving them with more money in pocket to spend on other leisure activities and entertainment.

4. Less Outdoor Time

As people get more cautious and avoid public places to reduce the risk of infection, they will spend more time indoors and hence online, to keep occupied.

Expect a surge in activity on social platforms & networks (Twitch, Youtube, Mixer…) and record viewership for live video content streaming, further fueling purchases and play time.

5. Event Disruptions

Various Sport events are already being suspended including some Italian Serie A matches, while other Poker & eSports tournaments are restructuring online.

Further disruption of large sporting events such as Cheltenham, EURO 2020 and the upcoming Tokyo Olympics could leave a big dent on the Bookies’ expectations for 2020.

6. The Wider Economics

With tourism responsible for 319 million jobs worldwide, a prolonged slowdown in global economic growth could trigger widespread unemployment or a recession.

On the other hand not all businesses will suffer. Online Gaming company stocks which have been suffering in the recent months due to increased scrutiny and regulation, could rebound as a result.


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