The COVID-19 pandemic, which began in Wuhan, China, in late December 2019 and quickly spread to more than 200 countries, has taken the world by surprise. It has unprecedented implications for the global economy and daily life, especially for the poor. Global GDP will shrink by 2% in a best-case pandemic scenario and 4% in a worst-case scenario. Domestic services and tourism are the hardest hit sectors. Against this backdrop, the gambling industry is likely to suffer a similar fate in 2020 and beyond. This article examines the impact of COVID-19 on land-based gambling operators and individual players.
Regarding this issue, people tend to find some things to do at home. It keeps them safe and productive when staying at home. This phenomenon also affects the gambling industry, as explained above. It includes lotteries and casinos, as well as betting and slot machines. In response to the highly contagious disease, the government ordered public venues and other non-essential businesses and services to remain closed in almost all areas. For gambling operators, this means they will have to physically close their premises, including casinos, hotels, clubs, sports activities, and related gambling, etc. Therefore, people tend to choose online casinos these days.
Online Casino Operational Losses
Online casino operators face significant challenges and have suffered revenue and profit losses, and expect further problems. The government may have relaxed some measures in response to COVID-19. However, it allows resuming some operations under severe restrictions. Some online casino providers took several cost-cutting measures to maintain their business. These included seeking new financing and reducing overhead, cutting 8,500 employees, restructuring debt, and applying for financial assistance from the government for the pandemic.
Individual Gamblers Impacts
Gambling is a popular pastime worldwide. It has attracted nearly 7 million players per year. The per capita spending on gambling was $1,292 in 2017-2018, and most people lose their money gambling while playing the most popular gaming machines, followed by lottery and casinos. Many gamblers win money, socialize, or control their emotions. Individual gamblers were affected differently by the COVID-19 pandemic.
Casual gamblers had fewer opportunities to gamble and had less money to spend. COVID-19 containment measures made it more difficult for Australians to gamble. Many gamblers, recreational and casual gamblers, perceived it positively. It made it impossible to operate betting or other related gaming activities. The law also states that only certain types of online gambling are allowed and the territories in which they are located. It limits their ability to play these types of games.
Gamblers Financial Issues
Gambling can cause financial stress in many families. It includes arguments, doubts and fears, mental breakdowns, abuse, and even divorce. It means that some gamblers could suffer severe financial losses. Problem gamblers can also be affected by boredom, stress, concern about financial security, and worry about losing their jobs. First, online gambling skyrocketed during the lockdown. Second, although COVID-19 may reduce the frequency, problem gamblers tend to gamble more and lose more each time. Many also confirm that …