Global Gambling Report: Online casinos have won new players (YoY) during the Covid-19 pandemic
Sports Betting News

Global Gambling Report: Online casinos have won new players (YoY) during the Covid-19 pandemic

Covid-19 pandemic suspended or cancelled almost all sports events around the globe and its effect has been immense everywhere in the global gambling world. Operators in Europe, the Americas, and Asia have seen players move from their old favourite verticals to ones less affected by the pandemic. We sent a survey to major international gambling operators and promised that we would share the results without revealing the brands.

Canadian Online sportsbook loses over 80% of players in April (YoY)

Canada final

The NBA was the first major sports league to suspend its 2019-20 season in mid-March and the NCAA, the NHL, and others were quick to make the same decision. This has had a major effect on the number of people betting on sports, and thus, sportsbook operators around the world have reported major losses in the number of players.

A Top-10 Canadian betting operator told us that their sportsbook has lost 80% of players compared to April 2019, while their online casino vertical has seen an increase of 77% during the same time period. Bets on big sports leagues like NBA, NHL, and the MLB decreased over 95% compared with the same period in the previous year.

Canadian top-10 betting operator in April: Sportsbook -80% (YoY), Casino +95% (YoY), Poker +145% (YoY), Horse Racing +42% (YoY)

The biggest relative winner in terms of players at the Canadian operator has been the poker vertical with +145% result vs April 2019.

One of the most surprising effects of the Covid-19 pandemic at some of our partners has been the increase of players betting on horse racing. The Canadian operator reported that their racing book saw an increase of 42% in April (YoY).

Global Top-10 operator in April: Numbers are negative for the sportsbook and positive for casino and poker

Global final

A Top-10 global gambling operator told us a similar story to the Canadian one; numbers are negative for the sportsbook and positive for casino and poker. They added that virtual sports and esports have become more dominant than they were prior to the pandemic.

Vegas: Casino revenues have declined

Sands revenue covid

Land-based casinos have reported heavy falls in revenues amid the COVID-19 pandemic. Las Vegas Sands, one of the biggest gambling operators in the world, reported that their revenues have declined over 50% during the pandemic. 

Ceasars reported that they are burning $9.3 million in cash every day because all of their global gambling venues are closed.

Global gambling market: Gross Gaming Yield (GGY) - 2001 to 2019

Screenshot 2020 03 03 at 14 41 42

Global gambling revenues have been increasing steadily over the past two decades. The estimated annual growth rate of 5% will most likely be considerably lower in 2020.

MarketWatch has reported the global gambling market is poised to grow by $231 billion between 2020 - 2024, a 5% Compound Annual Growth Rate (CAGR). This growth will most likely be slowed down due to the pandemic, but it could be interesting to see how the power balance between the verticals keeps developing.

Macau

Before Coronavirus pandemic: The gambling industry in China is growing fast

The Chinese economy is growing fast, and the same applies to its gambling sector. Reports made before the Covid-19 pandemic suggested that the gambling market in China will see the biggest increase globally during the next few years.  

Land-based casino in Macau in March: GGR -80% (YoY) Land-based casino in Macau in April: GGR -95% (YoY)

However, the pandemic has punished Macau’s land-based casinos severely.

After Coronavirus pandemic: Revenues are down over 80%

The biggest gains in the Chinese gambling economy come from landbased casinos in places like Macau, and these have been heavily hit due to the pandemic. The research and analyst company Sanford C. Bernstein reported that Gross Gaming Revenues at the biggest casinos in Macau were down 80% in March and 95% in the first part of April compared with the same period in the previous year.

Ceasars losses