The gambling industry proves to be highly resistant to external impacts, but it is not totally immune to unexpected occurrences such as the coronavirus pandemic. Local gambling markets had to adapt to unusual circumstances and find alternative ways to retain visitors and attract new players.
But they could not prevent or solve every problem.
Casinos are still struggling with the consequences of COVID-19 and making “what if?” plans in case the situation remains the same beyond 2021. What seems to be their biggest challenge? There are a few major factors they need to deal with, so let’s take a look at the top gambling industry problems caused by the COVID-19 crisis.
1. Offline Casinos Are Closed
Social distancing and other anti-coronavirus measures forced many countries to ban traditional casino gambling. You can hardly find an open place to gamble these days and it’s easy to see why. For instance, the US closed 100% of its offline casinos in March 2020 because they wanted to prevent the expansion of COVID-19.
But where one door closes, another opens.
Online casinos seized the opportunity to step in and take over a major portion of the market share. Today, you can discover hundreds of online gambling platforms with thousands of new games. It’s a huge trend that promises to shake the entire casino market and remain the same even in the post-coronavirus era.
2. Gamblers Spend Less Than They Used To
Another problem that goes with the crisis is players’ inability to place a lot of high wagers. The economic crisis disturbed entire businesses and left too many people jobless, which practically means that players cannot afford to spend too much money on casino gambling.
This is also the reason why online casinos minimize their deposit requirements. For instance, the best casino sites with no wagering requirements let their clients choose how they want to play without setting any limits whatsoever. This makes online gambling incredibly affordable and attracts new players to join the game.
While it cannot cover the loss of a casino to the fullest extent, it certainly can make the situation a bit better and easier to overcome.
3. Regulatory Issues Become a Big Deal
Online casinos are replacing traditional gambling outlets during the COVID-19 crisis, but does it mean that the transition period is smooth and silky? The answer is clear: Not really.
Too many companies identified a fresh business opportunity and they rushed in to create their own online gambling platforms. The problem is that most countries don’t have a clear regulatory framework and hence cannot control the market as precisely as they are supposed to.
Some online casinos take advantage of the whole situation and run their businesses illegally, thus creating unfair competition and avoiding obligatory tax regulations in their home countries.
4. Betting Takes a Massive Hit
Betting makes a huge portion of the global gambling market, but it is also going through a very difficult period these days.
First of all, too many events have been canceled or postponed, with the most important one being the Tokyo Olympics. At the same time, competitions that do continue as planned are struggling with frequent changes in the schedule because athletes are getting sick and quarantined.
In other words, bookies don’t make the same profit simply because there are fewer events and fewer betting opportunities. Players are trying to switch on alternative competitions, but the truth is that many bettors don’t like changing their daily routines and betting on unknown athletes, teams, and events.
The Bottom Line
Every industry has been going through changes in the last 12 months due to the COVID-19 crisis. Gambling is not an exception as the casino market is also forced to consolidate and face the consequences of the coronavirus pandemic.
In this post, we talked about the top gambling industry problems caused by the global healthcare crisis. Do you think casino companies will be able to adjust and survive in the coming months? Let us know about your thoughts on this subject in the comments section!