The COVID-19 pandemic did not just disrupt, but it brought the entire world to virtually a halt. It reshaped daily life and forced industries to change their ways. Although this was a global crisis and a tragedy of epic proportions that will stay etched in our lives, one sector benefitted from gambling COVID-19. With more people staying at home, there was a significant increase in the popularity of safe online casinos, providing a secure way for individuals to enjoy gambling from the comfort of their homes.
COVID-19 imposed various constraints and even shook up every industry in this world, except for that of gambling. As the pandemic shut physical venues and imposed social distance measures, the gambling industry had already shifted online for many years. Brick-and-mortar casinos also had to come up with innovative and quick solutions to stay afloat. How did gambling COVID-19 transform the sector and are these changed to stay?
Let’s dive into the various impacts of COVID-19 on the online gambling industry and how the industry has adapted to these new realities.
The Economic Impact of Gambling COVID-19
The onset of the COVID-19 pandemic sparked widespread concerns about its potential to make gambling behavior worse, especially among vulnerable players. As lockdowns confined people to their homes, there were some concerns that with more free time and limited entertainment options, gambling activities would boost considerably.
This fear was thus validated by surveys indicating that over half of respondents increased their gambling activity during this period. Isolated from their usual and regular social interactions, many were drawn to the communal aspect of gambling COVID-19, such as the chat rooms in live casinos and bingo sites, for some form of social connection.
The pandemic went on to create economic distress as businesses shut down and many workers faced income loss. This economic strain, combined with the closure of brick-and-mortar venues, resulted in significant drops in gambling revenue that mirrored the shifts in lockdowns.
On a larger scale, the economic disruptions caused by COVID-19 were also affected by global and regional challenges. In the United Kingdom, along with the uncertainties of Brexit, rising inflation and the added pressures of the war in Ukraine drove the country into a cost-of-living crisis. This led to many households controlling their spending and giving priority to essentials over other expenses.
Even so, gambling COVID-19 showed a remarkable sign of resilience during this period. Even as households face various financial constraints, the online gambling industry continues to exhibit overall growth. The latest figures from the UK Gambling Commission (published in November 2022) reveal that the total Gross Gambling Yield (GGY) increased by 10.9% year-on-year from April 2021 to March 2022. This growth underscores the notion that the gambling industry has a unique form of resilience when it comes to economic downturns. In fact, the online gambling industry is often considered ‘recession-proof’.
Shifts in Player Behaviour as Stated by the UK Gambling Commission
The UK Gambling Commission’s report shows valuable insights into how player behavior shifted during this period in time:
- Rethinking without major change: Despite the pandemic urgent people to rethink their lives and financial habits, many participants reported that their online gambling activities remained largely unchanged. Only a small fraction has reduced their gambling COVID-19 frequency.
- New games and payment methods: This shift towards trying out new games and the reliance on debit card payments in the UK have made tracking spending more challenging for players. This often led to increased overall spending, even if the individual bet sizes, did not rise significantly.
- Mixed feelings about gambling: A large number of participants expressed disappointment with their gambling behaviors since the pandemic began. Few participants mentioned any positive change in their gambling habits during this time.
- Generational differences in gambling: Younger participants were more likely to have increased both their time and money spent on gambling during the pandemic. Interestingly, they also showed less concern about their gambling compared to older participants, who tended to be more worried about their gambling habits.
Other insights from the survey also revealed that half of all participants admitted to increasing their gambling COVID-19 time. This rise was attributed to the accessibility of online gambling, and the fact that it is available around the clock via multiple devices.
The rise in gambling COVID-19 times highlighted the initial concerns about protecting vulnerable players during the pandemic. The issue was echoed in a 2021 University of Bristol study entailing 2,600 participants. This research found:
- Regular male gamblers significantly increased their online gambling frequency when compared to pre-pandemic levels.
- Although overall gambling frequency decreased during lockdowns, the closures of betting shops prompted an increased uptake in online gambling activities, such as bingo, casino games, and poker.
- Occasional gamblers were more than twice as likely to engage in online gambling during lockdowns.
- Financially-strained players before the pandemic were more inclined to turn to gambling during lockdowns.
Ongoing Gambling COVID-19 Impact on the Secor
The COVID-19 pandemic has exacerbated the ongoing economic challenges and inflation, but it has also accelerated the adoption of new technologies. New technologies, such as 5G, artificial intelligence, and blockchain are currently shaking up the landscape of the online gambling industry.
AI, in particular, has become quite indispensable due to its advanced data processing capabilities and ability to quickly identify any errors. It plays an important role in the detection and prevention of irregularities in Random Number Generations, detecting bonus fraud, protecting payments, and preventing hacking attempts amongst many others.
Over time the pandemic has raised awareness of player vulnerability, which in turn has led to various gambling authorities, such as the UK Gambling Authority to apply more strict regulatory approaches.
For example, new rules for game designs were introduced in 2021, with the aim of limiting bet sizes in online slot games and better affordability checks.
Kirill Tsernov (Content Creator & Casino Expert) stated that gambling COVID-19 has accelerated these regulatory changes. However, some gambling markets have been moving towards a greater reform over many years. What sets this current wave apart is the solidification of these reforms into the legal framework.
Overall, the pandemic has highlighted the vulnerabilities and downsides of online gambling but it has also played a pivotal role in quickly encouraging the industry to apply more stringent regulations that are beneficial for all parties involved in the long run.
