The coronavirus epidemy undoubtedly hits hard all the economic sectors and dramatically changes the future of the economic system. Basically all the industries lose millions every day. Mandatory quarantine and prohibition of going to work cause huge losses and increases unemployment all over the world. How does the gambling business deal with it?
According to Desert Casino Egypt, there are a few common situations in the gambling market right now.
The first one, sports betting. Here the pandemic effects have dealt a blow the most. With all the canceled matches till the end of the year, many of the bookmaker’s businesses might get really unstable, which can closely impact many football clubs sponsored by them. The biggest punch of all was the UEFA Champions League postponed to 2021. It includes all of the other sports sectors, such as second tennis with the percentage of bettings, golf, basketball, and others.
Another situation – casinos. “Viva Las Vegas” – the beating heart of the gambling industry has stopped working, which causes the greatest money losses in years. For example, Wynn Resorts, which operates luxury hotels and casinos around the world, found that the daily loss of money is approximately 2,6 millions of dollars in Macau. The shutdown of the most profitable industry in Nevada costs the US an incredibly huge amount of money. The American Gaming Association (AGA) estimated that if casinos stay closed for the next eight weeks, it will cost the U.S. economy $21.3 billion in direct consumer spending and $74 billion in total annual wages (over 600,000 employees).
On the other hand, with plenty of people under the lockdown, you can find growing concerns that being housebound can cause a massive wave of online gambling addiction. There are several most common factors explaining why people start to gamble online. Boredom goes as first, then you have side effects of social distancing and of course a big dose of stress as well as financial insecurity. Some people treat it is an investment of the very last money they have. Some of them just can’t resist all the advertisements and want to try their forces. Some past gambling addicts feel the need to go back to it, and the temptation is just too much for them. It is undoubtedly good news for the online gambling business. For them, it’s a clear sign that people are feeling financially and emotionally insecure can be played easily. The growing popularity in virtual sports games can cause a real danger for many customers. They have nothing to do with a real sport and are unlimited. The addictive nature of such games can lead to a big financial problem or a real addiction.
The situation becomes dangerous enough to make several countries consider putting some serious gambling restrictions. To prevent problems that isolated gamblers might have, Sweden established new rules that say players have to set both time and money limits for their online activities. Other European countries such as Belgium or Spain also took action in order to limit online gambling. In Belgium, betting authorities announced a deposit limit of € 500 a week on locally hosted sites. The Spanish government has taken control over adverts and put a restriction on betting advertising to a four-hour window between 1 and 5 am. Latvia, for instance, banned all the online sector until quarantine restrictions will decrease. Authorities also strive to block unlicensed gambling sites.
The Bottom Line
The effects of the global pandemic are very painful for every industry. There is a critical situation in the gambling business that affects all the industry. Many people will struggle with unemployment, worse-functioning companies are more likely to go bankrupt, isolated people might suffer real addiction issues and lose a big amount of their savings. There is no good news for this business now. They can only hope for this pandemic to be over soon and draw solid conclusions.
