Marketwatch: A New Report Reminds that iGaming is not Dominated Nor Stalled by CovidPublished December 7, 2020 by Lee R
While land-based play took a major hit, iGaming has remained sustainable.
While the iGaming industry provided an outlet for players during the shutdown period, the industry was not above being affected by the pandemic and shutdowns.
Increase in Play
ResearchandMarket.com's "Analyzing the Global Online Gambling Industry 2020" indicates that during the pandemic, iGaming has experienced growth. The pandemic and initial shutdowns generally spurred widespread patronage to casino and gambling websites.
The report indicates that historically the iGaming sector has become highly competitive with the rise in demand for online play. That already created a competitive environment with enhanced features that would set the table for keeping player engaged for longer periods during the pandemic.
According to the report, over half the world's population (51%) takes part in some form of gambling every year.
Through an empirical analysis including a Porter's Five Forces Framework Analysis, Marketandresearch reveals that specific factor all combined to affect the industry, as opposed to the pandemic being one mitigating factor per se.
Not Just Covid
This is an important point to keep in mind in maintaining proper and full perspective on how the industry is really doing, as well as how to sustain as an operator or investor during the pandemic.
Other Industry Impacts
The report reminds that factors that contribute to market performance beyond Covid-19 included mergers and acquisitions; the impact of regulations in various countries; demand factors unique to each jurisdiction; operational and licencing costs, high barriers to industry entry; and globalization.
The report also points to case examples of iGaming companies that have thrived during the pandemic, including BetWinner as one of many websites whom realised greater rates of engagement than ever before.
The report ultimately concludes that the iGaming industry is likely to be one of the few sectors that can survive the pandemic with significantly less financial damage than other business sectors, including the land-based casino sector.
The key is to take into consideration all the factors aforementioned, and avoid viewing iGaming within a bubble. Covid is a strong factor, but not the only one.