The evolution of the online-gambling market
Analysts say that volume of online gambling will increase up to 158.20 billion dollars by the 2028 all around the world. In 2020 online casinos and sport betting was evaluated in 66.72 billion dollars. According to Fortune Business Insights because of pandemic in 2021 the market will increase up to 11.2% else.
But pandemic is not the main reason that has an effect on this growth. Wide spreading of the using smartphones, optimization of the internet-technologies and growth of the buyingoption also will have an positive affect on the online-gambling industry.
COVID-19 as an motive factor?
Global crisis in the health service and economics, that was occurred by the COVID-19, made the government of some countries introduce isolation and social distance. The companies introduced models of remote work. Because of that almost all working population stayed at home.
Because of closing the minor companies, including casino, gambling activity has become on the online resources. According to the report Fortune Business Insights it increased growth of the online-gambling market.
The article that was published by the New-York University showed that online gambling resources starting to pick up in Canada after the growth of the COVID-19 cases.
In Australia, according to the report of the Concordia University, in april 2020 charges on the online casinos was increased up to 67%. It is expected that in 2021 the common turnaround of the Down Under will compose 74,17 billion dollars.
The modern tecnologies as a driver of online-gambling.
But pandemic is not the main reason that has an affect on the growth of the popularity of online-casinos and sport beting, also it has an affect on the poker and bingo in the internet. Introduction of the modern technologies – also is the main factor that has positive affect on the market.
Artificial Intelligence and Blockchain are using more and more on the online-gambling resources. This tendency was widely spreads by the startup.
Gambling startups rely on criptocurrency.
Edgeless, founded in 2018, was the first company to use Ethereum. As Tombola-well known for its lotteries and games, was based on cryptocurrency and other blockchain-enabled methods.
The other example – startup from Canada – Quarter4, that use simulation of the artificial Intelligence for the content and sport prediction. Introduction of the modern solutions in the sphere of the online-games opens up new ways of development.
But the most various possibilities in the financial transactions also has an effect on the growth. Users can make deposits and withdrawals easily.
Companies such as Visa Inc. and MasterCard purpose safe payment methods for the online casinos. Electronic wallet providers such as Skrill and Neteller also has an affect on the online-gambling spreading. At this moment Neteller provide transactions for 26 currencies.
According by the Fortune Business Insights, besides simply and safety payment methods, using smartphones is the mover the online-games developement.
But the PC game will dominate in online-gambling because of the better graphics and the bigger memory capacity that a smaprtphone, that leads to developement of the user’s practice.
Pandemic and casino.
When the industry of the online-games was glad of the sailing growth because of pandemic, the real operators has damages. According to the data of the American Gambling Association (AGA), american casino revenue dropped by 31% in the last year.
Makao has damages too. According to the Gaming Inspection and Coordination Bureau has shown that in 2020 the common gaming revenue was able to compose 7,57 billion dollars. It has respond 79% drop from 2019.
European Gaming and Betting Association (EGBA) said that european damages also are on a high level. According to the EGBA real casinos and sport betting companies was faced with the losing in amount og 33%. That means reduction in amount of 49.6 billion dollars.
Optimism in the revenue hard times.
In Las-Vegas industry has an optimistic attitude after all damages.General manager MGM Resorts – Bill Hornbuckle wait for the 90% increasing by the 2022.
In Makao casinos were closed for two weeks, but results of the pandemic was because of restriction on the travelling to. Las Vegas Sands sales dropped by 81%. MGM Resorts International and Wynn Resorts in Makao were published the same details.
Online-gambling industry in UK has been hit hard.
In Great Britain casinos were closed approximate for five months in the last year. Bookmakers was able to start working, but casinos was able to keep their doors closed.
Thomas Simon – general director of the Hippodrome casino in London has named political isolation policy as a “Farce”. Regular delays with the opening had expensive results for casinos, besides all, a lot of funds was spent on the protection against injections.
For some casinos financial load was too high. The last summer Genting UK was obligated to close three of their casinos and all poker-rooms. 1643 cooperators have lost their job. Even schedule of closing, that provide casino’s reopening on 17 may, maybe, will be too late for some operators.
Regulation of gambling in Germany influences sales of online bets!
German provider of the bets and sport bets Bet-at-home AG published business performance on 2020. The company said to their investors that In 2020 sales were dropped compared with the previous year.
2020’s earnings composed 126.9 million euro. In 2019 was collected 143.3 9 million euro. Low performance was because of the pandemic restrictions. Carryover of some sport events from the march 2020 has an effect too.
Renewal gaming operations has an optimistic affect on summer months that aren’t always full of events. But it could reestablish sales that was lost in spring.
On the other side, large investments in marketing were postponed due to the transfer of 2021 European championship and other sport events, these expenses droped from 39.8 million euro in the previous year to 30.5 million euro.
Sector of online casino depends from the gambling regulation.
Sector of online casino and live-casino wasn’t hurt by pandemic but new laws in Germany has an affect.
“Regardless of all, online casino games and live-casino sector wasn’t hurt by the pandemic. But german legal liberalisation steps affect to the limitations in the online-games section that negatively affected on online-casono’s sales on the main german market. Gross revenue from bets and gambling games was 126.9 million euro in 2020 (2019 financial year: 143.3 million euro).
Regardless of restrictions because of new regulation of the gambling business and pandemic, EBITDA was 30.9 million euro in 2020 that is lower than in the previous one. But prediction that expected EBITDA in amount from 23 to 27 million euro was exceeded.” – This is the Bet-at-home article.
A glance on the 2021 financial year.
According to the annual report, Bet-at-home predict that sales from sports bets and casino games will continue to drop in 2021 and will compose from 106 to 118 million euro.
“Lowering of gross income from bets in 2020 depended with the accomplishment of requests of legislation because of german licence about sport bets. Also, from october 2020 requirements from the german government in the casino sector needs to be completed, that will affect negatively on the sale’s developement in 2021.
We expect that EBITDA will compose from 18 to 22 million euro. How company will work in 2021 and the state contract about games will enter into force will depend on when exactly pandemic limitations will be annulated”.