The pandemic and its effect on the global casino industry.
After the start of the novel coronavirus pandemic in 2020, which lasted throughout 2021 and is only now, at the end of the year, beginning to subside in countries that managed to vaccinate their population, practically nothing remained the same. All human activities were, to a greater or lesser extent, affected.
In the case of casinos, the situation was no different. However, to better understand the impacts of the pandemic on this sector, we need to differentiate between physical and virtual casinos. We hope, therefore, to provide both novice and veteran players with a useful resource to understand the current state of this market and its future prospects.
Thus, while in 2020, particularly, the revenue and events of physical casinos were completely compromised by restrictions on movement and socializing in enclosed spaces, the digital gaming and betting market grew more than ever, consolidating a trend that already existed before the pandemic.
Who lost…
In the case of Las Vegas, the world's leading casino center, for example, gambling and entertainment venues were completely closed between March and July 2020, when they reopened at 50% capacity.
With a new wave of resurgence of the pandemic, the limit was set at 25%, gradually increasing until it returned to normal frequency as is happening currently – obviously with new protocols and safety measures.
As a result, Nevada's revenue fell by 25% between 2019 and 2020, from US$24,5 billion to US$18.3 billion.
In April 2020, when the pandemic began to terrorize the planet, only 2,4% of hotel rooms were occupied in the state, while in the same month of 2019 the rate reached 87,2%.
The impact was also felt at Las Vegas airport, which received 64% fewer passengers in January 2021 than in the same month of the previous year.
In the case of the world's largest casino hub, located in Macau, China, restrictions caused the number of tourists to fall by 77% in December 2020 compared to December 2019.
The rules only began to be relaxed in February 2021, but even then only for Chinese tourists, with permission for foreigners taking longer and being conditional on strict protocols.
In South America, effects were also felt, for example in Punta del Este, Uruguay. Because the government severely restricted the entry of foreigners, who make up 95% of casino guests, the sector's revenue was 30% lower during the peak season.
… and who won
On the other hand, the digital gaming and betting market, which had already shown a steady growth trend in the years prior to the pandemic, experienced a boom during the period when Covid-19 spread across the planet, profoundly affecting the market for cultural events, sports, games, entertainment, tourism, and leisure.
In the safety of their homes, players who previously participated in in-person events began to frequent virtual environments more often, and people who had never played before also took advantage of their free time, as well as promotions and incentives offered by digital betting sites, to begin to learn about this culture.
In Brazil, for example, the Game Brasil Survey indicated that 60,9% of respondents consumed more digital games and gambled more during the pandemic. According to the same survey, during the period of social isolation, 75,8% of Brazilian gamers started playing more.
The situation was repeated in other countries around the world. According to consulting firms, the global gambling and casino industry market generated US$54 billion in 2020. Expert projections estimate that by 2027 the global market could reach US$127 billion.
Holding one of the world's leading online casino markets, the United States saw a record $1,5 billion in revenue in the sector in 2020, a 69% increase compared to 2019, according to the American Gaming Association.
Already in the first quarter of 2021, sports betting revenues increased by 270% compared to the previous year, something that can also be partly attributed to the impacts of the pandemic. The revenue of the company DraftKings, for example, increased by 49% compared to 2019, reaching US$644 million in 2020.
According to the American Gaming Association, the institution that regulates the sector in the United States, in the first quarter of 2021 games such as online Blackjack and slots generated three times the revenue of the same period in 2020.
In Brazil, there are currently around 450 permitted and regulated digital betting sites, which generate an estimated 12 billion reais annually in the country. ( Source: Surgiu )
