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Prostrate Travel and Tourism Sector & Legal Restraints to Challenge Growth Even as Casinos Reopen

George Miller

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Prostrate Travel and Tourism Sector & Legal Restraints to Challenge Growth Even as Casinos Reopen
Photo Source: suntimes.com
Reading Time: 3 minutes

 

The “Casinos – Global Market Trajectory & Analytics” report has been added to ResearchAndMarkets.com’s offering.

While the pandemic and lockdowns have largely benefitted the gaming industry, the gambling sector has been less lucky faced with a tepid outlook and a mixed bag of opportunities and challenges. With 74.6% of revenues coming from the offline brick and motor sector, the closure of entertainment centers and casinos as part of the lockdowns imposed in 1st Q 2020 impacted revenues and profitability for companies. The global market for casinos is expected to decline by 10.8% in the year 2020. The abrupt halting of economic activity has pushed businesses across all industries into financial distress. Sudden fall in revenues and profits as a result of demand disruptions has resulted in workforce pruning and layoffs. Unemployment rates have hit never-before highs with the US topping the charts with 12.5% unemployed as a % of total labor force. Social outlook against this background remains grim with households expected witness erosion in wealth. Personal financial outlook, community, economy, job security confidence, purchasing and investment confidence are all tumbling as the human and economic cost of the global pandemic rises. While brick and motor casinos stagnate, online casinos are faring better although limited by lower discretionary spending. The increase in spending is coming largely from gaming addicts and from consumer clusters spending more on online retail and entertainment during the pandemic.

Even as casinos begin to reopen as lockdowns are cautiously eased in countries worldwide, they face the challenge of falling consumer confidence and spending and the still prostrate travel and tourism sector. In Las Vegas for instance which is the gambling Mecca of the world, millions of tourists and visitors make up for the large customer base at casinos. Gaming operators from Macau to Las Vegas are all anticipating a rough restart after gaming properties are allowed to reopen. In Macau, a few gaming properties have reopened but could not see desirable outcomes. In gambling destinations such as Parisian Macao, Venetian Macao, Sands Cotai Central, Wynn Palace, City of Dreams, Galaxy Macau, MGM Cotai, Grand Lisboa, MGC Macau, Star World and Wynn Macau, customer turnover still remains low. During pre-COVID-19 times, each of those casinos attracted around 200 thousand visitors every day. This extreme drop in visitor numbers is due to stringent border restrictions being followed since the month of March. Limited options for transportation and quarantine rules make it difficult for players to visit gambling destinations. With the global economy now in recession, recovery will be delayed further. Although online casinos are well suited for safe indulgence in gambling in the midst of a pandemic situation, this sector is still fledging and is plagued with legality issues. Online casinos are illegal in most parts of the United States and in countries where online casinos are legal confusion over legal boundaries of betting and gambling is a chief restraint to growth. Underdevelopment online funds transfer platforms also adds another layer of challenge to growth. In younger markets like the U.S. and Asian countries where digital prize money disbursement platforms are still underdeveloped, the challenge is bigger and more difficult to overcome. In Europe, the region with a well-developed online and offline gambling infrastructure, casino owners are innovating in digital payments by using digital wallet services to transfer funds to customers.

A return to complete normalcy will begin only after barriers to access gaming destinations are completely removed. The market is projected to reach US$159.3 billion by the year 2027, trailing a CAGR of3.7%. Offline Casinos, one of the segments analyzed in the report, is projected to grow at a 3.4% CAGR to reach US$116.3 million by the end of the analysis period. Few of the factors expected to drive growth in the post pandemic period include migration from cards to crypto currency gambling; continued evolution of online casinos supported by rapid proliferation of mobile devices and growing penetration of smart phones and tablets; development of supplicated gambling apps; growing participation of women in casinos; resurgence in casino tourism; relaxation in gambling regulations and legalization of gambling in several nations given their contribution to national income and development of local tourism.

Key Topics Covered:

I. INTRODUCTION, METHODOLOGY & REPORT SCOPE

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

IV. COMPETITION

Companies Mentioned

  • 888 Holdings Plc
  • Betfair Group Plc
  • Boyd Gaming Corporation
  • Caesars Interactive Entertainment, Inc.
  • Dover Downs Gaming & Entertainment Inc
  • Galaxy Entertainment Group Ltd.
  • Golden Nugget Atlantic City
  • Harrington Raceway & Casino
  • Ladbrokes Coral Group Plc
  • Las Vegas Sands Corporation
  • Mgm Resorts International
  • Penn National Gaming
  • Sjm Holdings Ltd.
  • William Hill Plc
  • Wynn Resorts Limited

Australia

Tabcorp Revenue Declines 5.7% During Three Months to September 2020

Niji Narayan

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Tabcorp Revenue Declines 5.7% During Three Months to September 2020
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Australia’s Tabcorp has reported a 5.7% decline in revenue for the three months to September 2020.

The trading update formed part of an investor presentation at the company’s AGM, with Managing Director and CEO David Attenborough revealing the slight 5.7% decline was mainly felt in its Gaming Services segment which fell 55.2% on the closure of licensed venues. Lotteries and Keno revenue was down 6.9% year-on-year with Wagering and Media down 2.9%.

“The duration and severity of COVID-19 is unclear, however Tabcorp remains well placed with our resilient, diversified earnings base and strengthened balance sheet,” Attenborough said.

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William Hill Warns New Lockdowns Will Hit Profit

Niji Narayan

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William Hill Warns New Lockdowns Will Hit Profit
Reading Time: < 1 minute

 

William Hill has warned that shutting 100 shops for four weeks due to further local lockdowns would reduce core earnings by around £2m.

Currently, around 10% of its retail estate is located in regions where the local Covid-19 alert level is classified as “very high.”

Despite this, the firm, which operated 1414 shops across the UK in the13 week period to September 29, said it had delivered a good performance as the return of live sport accelerated and its retail estate reopened.

The firm, which has 1300 employees in Leeds, said it enjoyed a continued good performance in its International Online business with gaming growing double digits, partially offset by unfavourable sports results.

Ulrik Bengtsson, CEO of William Hill, said: “We are very pleased with the trading performance of the group, which has been borne out of the commitment, resilience and hard work of our teams across the business. I could not be prouder of them.

“We have moved the company forward with our relentless focus on our customers, enhancing the competitiveness of our product, and maintaining player safety as one of our highest priorities.

“We have reinvigorated the leadership team and they, in turn, have empowered their teams to deliver on our plans.”

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Online Gambling Platforms Gained Larger User Base With Pandemic As A Driver Of The Global Online Gaming Market 2020

George Miller

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Online Gambling Platforms Gained Larger User Base With Pandemic As A Driver Of The Global Online Gaming Market 2020
Reading Time: 3 minutes

 

Due to the social distancing restrictions imposed because of the coronavirus outbreak, brick and mortar gambling places remained closed, due to which online gambling platforms gained a larger user base. People were forced to sit at home during the lockdown and this increased internet traffic on all fronts. More people frequently visited gambling websites and thousands of new users registered every day. According to research firm Global Poker, the US has witnessed an increase of first-time online poker players by 255% since the coronavirus lockdowns began. Overall, the poker industry has experienced a 43% growth since April 2020. Some countries saw such increases as an opportunity and modified their online-gambling laws. For example, Belarus legalized online casinos and Armenia made some changes to its existing laws. The increasing popularity of gambling apps and social gambling will propel the growth of the mobile gambling market in the forecast period, and several online-gambling platforms increased their marketing and promotional activities in the form of extra tournaments and bonuses to attract more players as well.

With these drivers and the current situation of the world, the online gambling market size is expected to grow from $58.96 billion in 2019 to $92.86 billion in 2023 at a rate of 12.0%. The market is expected to then grow to $113.12 billion in 2025 at a CAGR of 10.4%.

The Business Research Company’s report titled Online Gambling Market Global Report 2020-30: COVID-19 Growth and Change covers major online gambling companies, online gambling market share by company, online gambling manufacturers, online gambling infrastructure market size, and online gambling market forecasts. The report also covers the global online gambling market and its segments. The online gambling market is segmented by game type into betting, casino, lottery, poker, online bingo, others and by device into desktop, mobile, others.

With increasing apps and social gambling, online gambling companies are investing in building mobile platforms for their games to increase accessibility and convenience for users. The availability of smartphones with high-end features such as extended storage, high-end graphics and faster processing speeds at reasonable prices incentivize online gambling companies to make mobile-based applications. Also, mobile gambling offers significant benefits, including more deposit options, loyalty programs, and the option to play with anyone anywhere across the globe. According to App Annie, in 2020, 70% of total gambling revenue is expected to come from mobile gambling.

Along with the ease of mobile apps, companies in the online gambling market are increasingly investing in Artificial Intelligence (AI) for improving the overall experience for customers. With the help of AI, personalization for each user is possible as the technology can analyze the preference of the user in terms of game selection and offer a customized welcome page accordingly, helping the user to save time spent on looking for the right game. AI also helps in providing customer support in the form of chat-bots for resolving queries. Behavior patterns and gaming frauds can also be checked, which helps in preventing frauds and locks out scammers. Technologies such as augmented reality and virtual reality are being implemented as well, giving a more immersive and realistic experience to their users.

Beyond such high-tech updates, online gambling companies are using several tactics to gain more users. Some provide F2P (free to play) types of game products, commonly referred to as freemium. These games do not make any money for the company directly, but revenues are made through upgrades and additions of certain features and improvements by the user. The user pays a minimal amount for different kinds of virtual offerings and other game products to improve the gaming experience. This model allows online gambling companies to increase their user base and have more active players on their platforms who would eventually make a purchase. Currently, many online casinos are offering a free play version of some of their games. Companies innovating their platforms according to the increasing number of customers and their preferences will allow the online gambling market to continue to grow.

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