The COVID-19 pandemic became a turning point for many industries, including gambling. All its sectors faced many challenges, even those, which seemed to thrive during this period.
The ups and downs of the industry are vividly described in gambling news articles. Of course, they differed among states. Some countries had a shorter lockdown period or started to return to normality earlier, while others were hit by COVID-19 severely. In addition to this, the governments of many countries imposed certain limits to restrict players from excessive gambling during the lockdown.
Cancellation of sports events, deposit limits, ban on advertising, and many other measures became a real challenge for operators. Let’s consider them in more detail.
Absence of sports competitions damaged the betting sector
The absence of sports matches became the greatest problem for both bookmakers and bettors. Sports fans were searching for alternative options to bet on. They were interested even in those types of sports and leagues, which had been unknown to them earlier. Of course, it gave a stimulus for betting operators to add more products to their offer. This situation gave a boost to such verticals as esports and virtual sports.
After the return of traditional sports, the bookmaking sector of some countries managed to revive previous income. The demand for betting on sports was high as optional offers still couldn’t substitute the excitement of wagering on live matches.
Strict pandemic-caused regulations
With the beginning of the pandemic, lockdown measures and the lack of land-based gambling entertainment, players switched to the online vertical. However, the rise in the number of casino users got regulators’ attention because it could result in an increase in the problem gambling rate. Some countries, for example, Sweden, set a deposit cap. Other states, such as the UK, restricted the advertising of gambling-related products. Almost all regulators focused on translating responsible gambling messages.
It is a well-known fact that online casinos use bonuses for customer retention and acquisition. Offering new free spins no deposit UK operators, for example, have the right to advertise these promotions. While Lithuania, in its turn, has banned all types of gambling ads recently and is hardly the only country, which has decided to go ahead with strict regulations. These measures constrained gambling firms immensely, which also reflected on the gambling industry as a whole. Without the product promotion, it was difficult for operators to generate the same revenue, which they had before the pandemic.
Necessity of new approaches and develop innovative products
While it seemed to the gambling world that gamblers, yearning for land-based entertainment, were ready to consume any product, operators had to rack their brains about their offers. For instance, online bookmakers had to shift to other verticals to stay afloat. Moreover, they created new products, which could be interesting for users to bet on. Land-based operators faced even more complex problems – they had to switch to the remote format within short timeframes. Nevertheless, some industry experts say that it is a wake-up call for those gambling companies, which have an outdated operation model and need to go at one pace with new technologies.
In general, operators had to reconsider not only their product offer but marketing strategies as well. With the ban on advertising in many regions and deliberate attention from regulators and government representatives, they tried to find ways for promoting their brand, remaining compliant with the law and following responsible gambling guidelines. It goes without saying that only strong performers of the gambling market could not only survive under these circumstances but also increase their revenue without infringing the law. At the same time, brick-and-mortar venues have been damaged by the pandemic severely. According to reliable sources, for example, casinos located in Nevada lose approximately $700,000 every day. It is not surprising as the gambling capital – Las Vegas – has not had players for a long time.
The pandemic and additional governmental restrictions caused many unforeseen events and unpredictable situations for the gambling sector around the globe. Among the most common issues were the closure of land-based gambling establishments, cancellation of sports events, and ban on advertising.
Without exception, all industrial players had to face these challenges. Some countries turned them into their advantages, increasing their income and revenue, while other operators had bad luck and catastrophic losses. Anyway, it was a great challenge for the industry with ups and downs that determined the industrial players’ abilities to handle the problems and find proper solutions.
Author’s BIO
Leslie Alexander is a master of words who fell in love with the topic of gambling. Her passion for creating breathtaking content allowed her to become a Content Lead at Gamblizard. Leslie writes articles for her own and coordinates the content writers’ work to provide readers with valuable and helpful gambling content.
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