Gambling

The Impact Of Economic and Social Upheavals on the Gambling Industry

Introduction

The Covid-19 virus gripped the world, and soon enough, every industry across the globe succumbed to the viral menace. The industry of gambling and gaming, too, could not save itself from the atrocities of the Coronavirus outbreak. The global lockdown pushed hundreds of gambling houses out of business, and even online gambling platforms faced a huge setback owing to the financial crisis that descended upon every nation.

However, if the pandemic has had one positive impact on the modern gambling industry, then that is the surge in popularity of the online casino gambling industry. Read on to dig deeper into the impact of social and economic upheavals like the Coronavirus outbreak on the modern gambling industry.

The positive impact of social and economic upheavals on the gambling industry

According to Carolina Fiel, a professional freelancer at Upwork with experience in various industries, there has been a steep incline in the business revenue for online markets. As brick-and-mortar casinos are shut down in compliance with lockdown regulations, gamblers are left with no choice but to gamble online. Online casinos have witnessed the registration of thousands of gamblers everyday since the outbreak of the virus.

The positive impact of social and economic upheavals on the gambling industry

There has been a steady growth of the online gambling industry by almost 11.5% in the United States, and researchers believe that the expansion of the industry shall continue in the coming years. The reasons behind the rising popularity of the modern online gambling industry in the face of the pandemic are listed below:

  • The pandemic put every sports event on hold for an indefinite period. The canceled leagues and matches resulted in the loss of betting opportunities. Sports bettors resorted to online gambling platforms to place bets on esports.
  • Social distancing and safety rules made it mandatory for gamblers to stay indoors. Online gambling was the safest choice for them. Moreover, online gambling platforms are easily accessible through smartphones and computers. One does not have to travel to different locations but can simply gamble online from the comfort of their bedroom and stay safe amid the pandemic.
  • The rich rewards and loyalty programs offered by online casinos do not fail to attract hundreds of gamblers. The pandemic has thrown several civilians out of employment, and these unemployed individuals seek a decent income from the online casinos.

Statistically speaking, the online gambling industry has witnessed a sharp inclination in popularity, especially in the United States and Europe. Between the months of April and October of last year, there was an immense growth of the online poker industry by almost 43% of the United States. The graphical representation below shows that there has been a spike in the interest shown by people towards online gambling ever since the viral outbreak. The uptrend in the popularity of gambling has only increased in recent years. Apparently, the lockdown has been a blessing in guise for the online gambling industry, although the same cannot possibly be said about the physical, land-based gambling industry.

The effect of the Coronavirus upheaval on the land-based gambling industry

The effect of the Coronavirus upheaval on the land-based gambling industry

Social and economic upheavals almost always wreak disaster upon global industries, and the gambling industry is no exception. A statistical survey report of February to June 2020 revealed that the brick-and-mortar gambling industry had been hit hard by the global lockdown. The adverse impact on the offline casino industry was inferred from the non-payment of taxes by the casinos. The impact of the pandemic on the worldwide casino industry is given below:

  • The overall taxation level of online casinos decreased by almost 17% from 2019 to 2020, with a very negligible recovery so far.
  • There has been a sharp decline in sports betting at casinos by almost 8% since the beginning of the pandemic.
  • Machine gambling and lottery gaming at restaurant casinos and gambling resorts have decreased significantly as most of the establishments are shut and out of business. Even the State-owned casinos are no longer in operation, leading to a complete disorder in the gambling industry.

Today, a few brick-and-mortar casinos are operating but with a lot of restrictions that are not quite favorable for gambling. The partial relaxation of lockdown rules has managed to revive the dying industry of gambling and betting to a considerable extent.

Conclusion

It is evident from extensive research that online gambling is the most popular now. Players simply love to gamble from the comfort of their homes and stay safe. Besides, online casinos are branching out to offer various services to consumers, including gambling, gaming, sports betting, live dealing, and more. 

With lucrative bonuses up for grabs along with grand prizes, online casinos shall continue to rise in popularity despite the economic and social upheaval caused by the global pandemic. It is hoped that the land-based gambling industry shall pick up the pace of business very soon. With the vaccination drive going on in full swing across the world, it is hoped that offline casinos shall commence operation by next year or so. As of now, it is a safer choice to stay at home and enjoy gambling and betting at online casinos.

References

https://pubmed.ncbi.nlm.nih.gov/34061685/

https://www.frontiersin.org/articles/10.3389/fpsyt.2020.611939/full

https://www.grandviewresearch.com/industry-analysis/online-gambling-market

https://www.globenewswire.com/news-release/2020/10/22/2112777/0/en/Online-Gambling-Platforms-Gained-Larger-User-Base-With-Pandemic-As-A-Driver-Of-The-Global-Online-Gaming-Market-2020.html

http://www.aaamusic.co.uk/2021/04/22/lockdown-is-a-good-reason-to-play-online-casinos/

Maxine Klingensmith

Maxine holds a bachelor degree in journalism, and she has worked as a freelance writer with foremost publications. Recently, Maxine has joined our team as a news editor. As she is passionate for casino and gambling industry, she conventionally contributes the latest news and reviews for casinos.

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