Covid-19 has caused major disruption to industries across the world, and few more so than gambling. The closure of physical premises, not to mention the suspension of most sports at the start of the pandemic, meant that bookmakers and casinos were forced to adapt. Although sport and sports betting has now largely resumed (you can find your promo here), and society appears to be on a gradual path toward normalcy, changes within the gambling industry are likely to have long-lasting implications.
From high street to online
The most marked change was and continues to be a massive shift towards online gambling. Casinos and bookmakers were closed, their staff furloughed, and their high street presence reduced to zero. In turn, customers rushed to online platforms, which enjoyed unprecedented traffic. Some bookmakers and casinos simply won’t reopen, accelerating the already pronounced move towards online and app-based gambling.
Industry insiders have speculated for years that the rise of online gambling will eventually see traditional bookmakers disappear from the high street altogether, with fewer casinos and bingo halls too. Regulations on Fixed Odds Betting Terminals had already impacted the high street bookmaker even before Covid. GVC (the owners in charge of the Coral Ladbrokes group) suggested that that change alone would lead to the closure of 450 shops.
More time spent at home led many to gamble more than they normally would. That applied to sports and casino betting as well as bingo sites. More users meant more strain on customer service lines and live chat. With staff forced to work from home and others ill, some sites struggled to keep up with demand. The uptick in traffic put a strain on web infrastructures and forced businesses to adapt “on the job.”
Online platforms have, on the whole, though, proved more adaptable than the high street. Large bookmaking chains like William Hill sustained heavy losses through a mix of suspended sports and closed shops. 2020 was so dire for William Hill that they reported profits down 91% on the previous year. Over 460 bookmakers closed in 2020 alone, which equates to 460 empty spaces on the high street even after restrictions are fully lifted, and life returns to some semblance of normality.
Behavioral changes
While these bookmakers inevitably suffered due to the suspension of sports, there’s some evidence to suggest that online gambling sites reaped the rewards as players looked for alternatives to sports betting. Chance-based gambling and online casinos enjoyed a boom, with games like roulette, blackjack, and bingo picking up the slack of dropped events.
This shift is far more profound than a simple move from high street to online. The pandemic has encouraged customers to try altogether different forms of gambling that are available 24/7 and deliver near-instant results. It seems unlikely that an end to restrictions will suddenly reverse this process or that traditional, high street bookmarks will make a miraculous return.
Perhaps the biggest impact of the coronavirus pandemic on the gambling industry will be just that: the acceleration of a process that was already underway and, in some ways, already inevitable.
I never thought about how the pandemic affected bookmakers. I was somewhat aware that some people were gambling more online and I do see how customers were encouraged to try different forms of gambling.