The global economy is on lockdown, thanks to COVID-19. Virtually every industry is on hold, including the gambling industry.
Major sporting events have been postponed, dealing a blow to the lucrative sports betting industry. Sports betting companies and media businesses that depend on the industry are cutting costs to stay afloat.
Lower league football teams are also grappling with financial difficulties. Let’s take a deeper look at the impacts of the novel coronavirus on the U.S. betting industry.
Decreased Revenue and Closing of Traditional Casinos
As COVID-19 continues to spread, many traditional betting operators are reporting decreased betting activity and dwindling revenues.
Some states have closedland-based casinos, making it more difficult for them to generate revenue. In mid-March, New Jersey ordered the closing of traditional casinos. Pennsylvania traditional casinos reported a $17 million drop in revenue from 2019 to 2020.
Increase in Online Betting
Online betting operators like SBOBET have reported increased activity since the outbreak of COVID-19, due to the increased number of people staying home.
Most live sports events stand cancelled, which has made it impossible to bet on live games. Still, online gambling in the U.S. has experienced less financial damage compared to traditional casinos and other industries. According to analysts’ predictions, online gambling platforms will reach a value of $102.9 billion by 2025.
Online gambling operators understand that most online gamblers don’t expect to receive payments via checks. For this reason, the operators offer multiple payment options to suit different customers’ needs. They’ve also invested in more robust security features and financial management systems. These components are essential now that most gamblers are betting online due to COVID-19.
Increased Adoption of Fantasy Video Sports
Online gambling operators have increased daily fantasy and virtual sports in their menu to help them cope with the harsh economic climate caused by the coronavirus pandemic.
Sports leagues and associations, such as NASCAR, are turning to esports or video gaming simulations that promise to bring new betting opportunities. Some broadcasters are even showing various esports competitions on live TV. They’re trying to fill hours of scheduled sports content cancelled due to the pandemic outbreak.
NASCAR is perhaps the most successful sports to leverage cancelled events with its iRacing Series. One of its events attracted up to 1.3 million viewers.
COVID-19 pandemic is not only affecting people’s health. It is also affecting businesses across the globe, including the betting industry.
Many live sports events have shut down since the outbreak of the pandemic. Almost all brick-and-mortar casino operations in the U.S. are on hold. Those that are still in operation are reporting decreased betting activities leading to dwindling revenues.
Most gamblers have turned to online betting due to COVID-19 precautions, such as social distancing and more people staying indoors. Online betting operators have faced fewer financial difficulties compared to other businesses. Some broadcasters are airing esports competitions to make up for cancelled live sports events and help them stay afloat.
All of these factors have led to a revised structure in the betting world.
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