UK gambling operators are now trying to lure customers to their online gambling services, including casino and poker games, at a time when they are trying to compensate for the loss of revenue from the cancellation of sports events and the closure of high-street betting outlets due to the coronavirus infection spread.
As explained by the Chief Executive Officer of GVC Holdings, Kenny Alexander, the transition of customers from land-based to online casino and gambling services was working “reasonably well”. He further noted that the company did not stop operation in spite of the fact that almost all major sports events and competitions had been cancelled for the time being.
However, no matter that gambling groups in the UK are still operational, they expect serious losses due to the betting shop closures and the cancellation of sports fixtures. That has been the reason why the companies have started to aggressively promote their online casino games, with some of the operators encouraging consumers to play their games offered on social media websites.
The GVC Holdings’ boss also shared that virtual racing also seemed to be quite popular among UK customers. Yesterday, the gambling technology developer and provider Playtech reported that an increase was registered in bingo and poker games.
Football, tennis, rugby and golf authorities have recently decided to cancel or put off sporting events in many countries around the world, as nations’ Governments have been trying to prevent large social gatherings. The Euro 2020 Championship was postponed until the summer of 2021, while the governing body of Formula One decided to delay the start of the motor racing series.
Sports Events Postponement and Eventual Betting Shop Closures Would Hit Gambling Companies Hard
So far, analysts have issued warnings that the postponement of sports events, which has already left bookmakers with a very few sports events to take wagers on, could considerably change the gambling sector. This is especially applicable to the UK gambling industry that in the last few years has been subject to stricter regulation imposed by the watchdogs and the Government amid rising concerns for a significant increase in gambling addiction rates across the country.
Large gambling operators have confirmed that the cancelled and postponed sports fixtures would seriously affect their earnings. GVC Holdings, which had 45% of its overall revenues generated from sports in 2019, warned that the lack of sports events to accept wagers on is likely to hit its earnings by up to £150 million in 2020. The company also shared that this figure could rise by about £50 million monthly in case the operator is forced to close its high-street betting outlets.
The beginning of the week also saw Flutter Entertainment announce a projection for a £110-million reduction in its full-year earnings. The operator said that betting shop closures in the UK and Ireland would probably lead to further losses of about £30-million per month.
One of the analysts working at the specialist gambling research firm Regulus Partners, Dan Waugh, has warned that these could be the last days of the gambling industry as we know it. He highlighted the fact that the Government may not let the sector exist the way it used to be in case that most of the gambling industry is held by it due to loans.
Furthermore, Mr Waugh shared his concern that there could be growth in gambling-related disorder rates, which could lead, on the other hand, to further crackdown to be imposed on the industry. He also confirmed that people currently prefer to play online casino games for longer, as they were forced to stay home as part of the social distancing measures aimed at tackling the spread of coronavirus.
- Author
Olivia Cole
