The Covid-19 pandemic has had catastrophic effects on several sectors of the global economy, with some industries suffering far more than others. In effect, the hugely affected areas have witnessed dwindling fortunes as a result of the lethal virus. One of such massively affected sectors is entertainment, as hotels, physical casinos, physical sportsbooks, music shows, and others had to be halted in response to the virus. With the halt or slow pace of most human activities, people and businesses have had to struggle for their sustenance.
One sector that has been a significant concern for some of us is the gambling industry in most parts of the world. With the necessary pause on all sports activities between mid-March and mid-June, the gambling industry has waned drastically, with some gamblers even giving up on the industry altogether. This gloomy development is quite unprecedented in the history of the sector and has cost it massive fortunes. As a result, we are drawn to the development as we try to discuss how global gambling has fared in view of quarantine measures across the globe.
Impact of Covid-19 on Gaming Market
Gaming is an integral part of gambling and has also been subject to waning patronage and a massive decline in revenues since the outbreak of the coronavirus. Physical casinos, poker rooms, physical sportsbooks, and bingo halls have borne the brunt of it, owing to their closure in most parts of the world. Thankfully, online gaming has come to save the day, as there has been a shift to online gaming. The online gaming industry has been a monumental industry since the advent of the internet a few decades ago.
The online gaming market has been made more gigantic with the introduction of internet-enabled games. Mobile games such as Starburst and Fluffy Favourites have been nothing but amazing, with massive downloads of these games annually. The online gaming market has been on a steady growth, rising from an estimated 50.85 billion dollars in 2018 to 68.5 billion dollars in 2019. A study by Adroit Market Research projected that the online gaming market would increase by 10% CAGR in 2025 raking in up to 79 billion dollars.
Based on the analytical report by MRFR, the traffic of online gaming has witnessed an increase within the area of 10 to 15% in this pandemic. The same report shows that the online gaming market, especially the gambling market, will not be adversely affected by the Covid-19 pandemic. This is underscored by the availability of top speed internet, and the need for players to keep up with gambling.
More so, the Adroit Market Research has shown that mobile gaming has led the online gaming market in 2019 and is projected to continue up till 2025. In terms of regions, the Asia Pacific region is reported to be leading the global gaming market in 2019 and will likely continue till 2025. In the region, Macau and Japan have been leading the global gaming market and are expected to continue until 2025. In terms of online gaming users, a report by Statista has revealed that the numbers have risen by 12.7% since the pandemic, piquing 931.7 million users.
The above statistics, surveys, and reports undoubtedly reveal that the impact of the Coronavirus pandemic has been grave on land-based casinos. As a result, online casinos with established following and patronage have become hugely significant, with the likes of Royal Panda and 888 Casinos dominating the online space. In view of this paradigm shift in consumer behaviour, the global gaming market might be turned to an online thing post-COVID-19.
The general trends in gaming have been subject to several astounding and surprising revelations. For instance, a 2019 report by App Annie titled The State of Mobile 2019, revealed that mobile games represent 33% of annual application downloads on google. It further stated that it accounts for 74% of online consumer spending and 10% of time spent on applications.
The report by Statista has shown that youths within the age bracket of 25 to 34 years, download and use mobile gaming applications more than other age groups. The male gender tops the user list with 62.0% as against the 38.0% by females. Medium income earners spend more on mobile games than other income earners surveyed.
Gambling After Quarantine
The gambling industry has recorded radical changes occasioned by the quarantine period and has resulted in the restructuring and reshaping of business models. After the pandemic has fizzled out, things would not be done the same way again, considering the efficiency and convenience provided by online casinos. Also, virtual gaming is taking over, given that actual sports competitions have not been as active as before. In fact, virtual gaming has recorded over 20% increase in 2020; so, this means that gambling will take a new dimension after the Covid-19 virus.
The world of gaming has been subjected to a compulsory change with so much advancement insight. Thus, players should learn to adjust to these changes and grasp the innovations that come with it.