Full market recovery expected after 2020 dent – report
Brick & mortar casinos felt the pressure during COVID-19, with an expected decline of 10.8% for all gambling activities
The online gaming industry saw an astronomical boom during the past year, but the same cannot be said for the gambling sector as the future looks marginally grim.
The COVID-19 lockdowns caused mass closures of entertainment centres and casinos which in turn annihilated their income and profit margins.
What to Expect
Economic activity hitting a standstill in 2020 lead to unprecedented financial hardships. The 10.8% decline comes as no surprise to some as businesses have seen massive turmoil. Wealth depreciation is bound to take place as the US took first place in the unemployment rankings with 12.5% of the labor force looking for work.
Online casinos did not feel the brunt of the situation. They saw an increase in spending as brick and mortar casinos were closed.
Travelling difficulties and regulatory constraints
The loosening of travel and business restrictions have not had as much of a positive impact as expected. Potential customers are still wary of travelling and being in larger crowds, including in Las Vegas – at least that is what is being anticipated. Early days are showing an uninspiring customer turnover.
Legality issues are also playing a part in the recovery of the online casino industry in the US and other countries with legal ambiguities. This is not as prevalent in Europe as multiple countries have already developed robust gambling regulatory frameworks.
Predicted $159.3 billion by 2027
Once regulatory constraints put in place during COVID-19 are completely removed, both online and offline, then a return to the status quo may be an easier sell. The market is thus predicted to rise to $159.3 billion by 2027.
Apart from a looser leash, the exponential rise of ulterior mediums and processes through which revenue can be generated will also play a part in the resurgence of the industry. Mobile devices, cryptocurrencies, and the legalisation of gambling are just a few factors that will be contributing to this development.
SiGMA Americas Virtual:
The SiGMA Americas Virtual show will run from the 13th to the 14th of September, 2021. Features include a fully interactive expo floor, networking chat rooms, and a high-profile lineup of panellists. Beautifully designed booths come equipped with state-o-the-art product displays and chatbox features, while attendees can visit the virtual stage, where a series of panels and keynotes will discuss key topics during the live 2-day conference.
Explore the agenda or check out who’s on the floor plan.
