“Corona Corona go away,
Don’t come again another day
Little Dan wants to play.
And in case you decide to stay
Don’t worry, he’ll still play”
2020 can be undoubtedly described as the most financially disrupting and challenging year for you as well as the top industries in the world.
Covid-19 has compelled businesses to eliminate conventional working models to come up with innovative and creative styles of business and Gambling industry has paved its own way into it.
Despite shutting down casinos and offline services, gambling sector managed to survive and grow in this pandemic by efficiently shifting to digital casinos.
The global online gambling market is expected to grow from $58.9 billion in 2019 to $66.7 billion in the end of 2020 at a growth rate of 13.2%.
The Covid-19 pandemic did cause an economic slowdown in the traditional casino infrastructure. However, the application of technologies like virtual reality, live streaming and online casinos emerged as a profitable and sustainable alternative amidst the economic setbacks in the industry. Let’s have a brief look at it.
#1. RISE IN VIRTUAL CASINOS
- Imagine sitting at your home wearing shorts and making your blackjack moves while the dealer gives you cards. Well, that’s exactly what a Live casino looks like!
- Thanks to the growth of internet and virtual reality which enabled us to adapt to this technology in the gambling sector. Technologies like Blockchain and VR headsets have brought up innovative experience for online casino gambling.
- Even though the live casinos were initially started back in 1996, the lockdown and social distancing augmented the use of Live casinos as people were compelled to stay in their houses.
#2. ONLINE CASINOS: THE GAMECHANGER
- Online casinos include software and websites to access a computerized form of casino based on entertainment, fantasy and many other appealing themes.
- The popularity of online casinos is increasing rapidly as gamblers are craving to get that casino vibe during the lockdown and win a million-dollar prize once again on a poker table. Roulette, Online slots and Poker are among the most sought-after games played in the online casinos.
- Despite the covid-19 situation, the global online casino market increased 15-20% in March 2020. The online market is expected to reach $92.9 billion by 2023.
- The Online casino has established itself as a masterpiece and has set a benchmark for digital innovation and profitability for other industries when brick and mortar no longer work.
#3. BRICK AND MORTAR CASINOS ECONOMICALLY HIT
- The closure of Physical casinos due to lockdown has severely affected the revenues and profits of the industry. With 74% of the revenue coming from offline brick and mortar casinos, the sector faced a decline of 10.8% in the year 2020.
- Due to this, a large-scale unemployment is witnessed in offline casino industry as the companies were forced to lay off employees for cost cutting and survival.
- The Casinos in United Kingdom were permitted to open earlier in August but the overall loss recovery of the industry is expected by 2022.
The global pandemic situation has definitely caused unemployment, uncertainty and huge economic damage in the physical casino sector
However, amidst this chaos, the online casino market has emerged as an alternative and a ray of hope for these businesses.
As more and more casinos are shifting online, the efficient use of technology fuelled with innovation shall determine the long-term sustainability of any online casino business.
The global online gambling market size is expected to reach USD 127.3 billion by 2027, registering a CAGR of 11.5% from 2020 to 2027.