The online casino industry is among the most resilient sectors in the world. However, it also transformed during the pandemic, and here’s how.
The Online Casino Industry & The Coronavirus Pandemic: Everything You Should Know
The global coronavirus pandemic changed life as we know it forever and left no one unaffected. However, the online casino industry is among the most adaptable and resilient sectors out there, and its online character helps it thrive when others suffer. Regardless, online betting and casino gaming suffered numerous changes on a global scale.
Online gambling activities proved to be immensely popular since their inception in the late 1990s. More and more people continuously replaced their land-based casino gaming with online venues, causing a rapid and unprecedented expansion of the sector. Unfortunately, the global pandemic caused adverse effects on countless businesses and individuals, including internet gambling. In the following text, we’ll observe the pandemic’s impact on the industry.
The Online Casino World: Pandemic Edition
Some sources reported that virtual betting nearly doubled in the first few months after the epidemic’s onset. After that, offline betting venues mostly shut down due to social distancing regulations, causing bettors to switch to online gambling activities.
Because no physical sporting activities took place, land-based casinos similarly offered minimal services to punters. As a result, almost all live events and numerous betting providers shut down, causing a rapid expansion of the online gambling sector. This occurrence was most evident across Europe. As European brick-and-mortar casinos closed down, European punters continued searching for alternatives.
Live Betting On Traditional & eSports
Sports betting has an equally long history as online gambling. The pandemic similarly increased people’s interest in internet betting, with numerous tournaments and money events. A fascinating feature is betting on eSports events, which recorded a stunning rise during the lockdown. eSports is a multi-billion dollar global industry and represents an off-shoot of traditional sports. Both sectors transitioned online to maintain sports fans.
Following the outbreak of COVID-19, online bingo also featured an enormous increase in player interest. Bingo is among the most straightforward and most effortless games to enjoy online as it requires minimal input. The rules take minutes to memorize, after which you can immediately start playing.
Players can enjoy several benefits while playing this popular game. The game works thanks to a computer automatically selecting numbers from a menu, and players use cards to guess the series of numbers the computer will draw.
Most providers include chat rooms where players can mingle and interact, which adds a social component to the overall online casino experience. Besides interacting with others virtually, most bingo games come with low stakes, meaning you can win a few extra bucks without compromising your bankroll.
COVID-19 & The Online Gambling Industry In The Numbers
An excellent example of a country that sailed through the global pandemic with minimal consequences is the UK. Great Britain’s online gambling market managed to retain and increase the number of its online gambling customers. This country is home to numerous reputable land-based casino operators and generally stands as a well-regulated market with clear and concise legislation and tax policies.
Numerous popular brick-and-mortar casino operators closed their doors during the pandemic, which cause a change in customer behavior. However, seasoned punters knew they had equally high-quality and alluring options online and seamlessly transitioned to this gambling form.
For instance, the legendary Bet365 recorded impressive growth in the number of online players that joined its platform. In April 2020, the company reported more than 20.5 million active players in its various online gambling services, which speaks volumes about its reputation. Additionally, operators such as William Hill and SkyBet reported similarly positive results.
Overall, the British online casino market featured a rise in the total number of online gambling enthusiasts. One report from the UK Gambling Commission, the country’s premier regulatory licensing authority, provided detailed stats. The survey revealed 38% more online poker players and 25% more online slots players in the UK during the pandemic than before. Consequently, numerous operators’ revenue similarly grew, further demonstrating the pandemic’s impact on individual gambling markets.
Can New Online Casinos Survive COVID-19?
The online gambling industry has proven its resilience and ability to flourish where other sectors suffer. As a result, it’s understandable why countless individuals continuously consider getting into the business of online casinos. Regardless, setting up a business can be pretty costly, and you’d be wise to consider numerous factors before deciding.
For instance, some studies suggest you need between one and two million US dollars to launch a legal online casino website. Some of the crucial considerations included in this amount feature the website budget, branding, and licensing fees. Additionally, when other people share their experience at a certain casino, it helps interested punters better understand that operator. Therefore, marketing is another crucial budget requirement. However, depending on what you define as your new casino’s goal, you could quickly go past two million Us dollars.
Therefore, it is impossible to come up with a definitive yes or no answer. Ultimately, your success in the online gambling industry will depend on the same factors as success in any other business. Of course, your capabilities are the dominant aspect that will shape your success, but if you understand how to become part of the mainstream, the odds are in your favor. In other words, if you know what you’re doing, now may be a good time to open an online casino, but we recommend doing so carefully.
Getting Into Online Casinos During The Pandemic: Crucial Considerations
If you’re planning on getting into this business, we recommend paying attention to three factors: marketing, casino software, and licensing.
Marketing can make or break any business, but its primary benefit is that it helps bring customers. So besides defining your target audience, you must also learn how to sell them your services. A proven way of getting more traffic includes offering lucrative bonuses and promotions to new customers to attract more new registrations.
The casino software is the quintessential aspect of an excellent gambling website. When it comes to ensuring an exciting game selection, software plays a key role. A reputable software package costs between 200,000 and 300,000 US dollars, and examples include Playtech, Evolution Gaming, and NetEnt.
Lastly, licensing speaks about your site’s trustworthiness and reputation. Applying for an online casino license represents a signal to your audience that your casino business is legitimate. Nowadays, you can apply for a gambling license in several jurisdictions. Examples include the UKGC, Malta Gaming Authority, Gibraltar Gaming Commission, and even Curacao. However, remember to check the licensing fees and other requirements for each jurisdiction before applying. Good luck!