US online GGR went up a record 253.8% year-on-year during the second quarter of 2020
With land-based casinos being hit really hard by COVID-19, casino operators are shifting their attention to online gambling operations. In the second quarter of 2020, online gambling in the United States doubled its revenue to $403 million.
Affected by COVID-19, the revenue of the US gambling industry plummeted in the second quarter of this year. The previous financial report for Las Vegas Sands Group under US casino tycoon Sheldon Adelson reported that his hotel, gambling and entertainment sales had plummeted 97% year-on-year to 98 million US in the second quarter; a net loss of 985 million US, compared with the same period last year when the profit was 1.11 billion US dollars.
In addition, the American Gaming Association shows that in the second quarter of this year, US commercial gambling revenue was reported to be only 2.3 billion US, a year-on-year decrease of 78.8%. Almost all segments have dropped significantly year-on-year except online gambling.
The online gambling industry has also attracted the attention of many investors. The American online sports betting provider DraftKings was listed on the Nasdaq at the end of April. The company’s current market value is close to 12 billion US, surpassing MGM 10.7 billion US.
In June of this year, NBA Houston Rockets owner and billionaire Tilman Fertitta used Blank Check Company aka Special Purpose Acquisition Company to list its online gaming company Golden Nugget Online Casino, with a valuation of 745 million US.
The low wave of land-based casino business and the prospect of future of the iGaming business have made traditional casino operators shift their attention to online gambling trends.