A new study revealed that players who gamble online are spending more money during the pandemic than they normally would do. According to the data unveiled by the study, one in three players registered a new betting account in June and July.
The study, which was held by the Australian Gambling Research Centre (AGRC), showed that up to 79% of new account owners were men aged between 18 and 34. It was also the same group that boosted their average monthly spending from AU687 to AU$1,075.
Over 2,000 individuals took part in the research, with the AGRC also revealing that the number of respondents who placed bets more than four times a week rose from 23% to 34% in the studied period.
The period that was studied included the months in which the Australian Football League (AFL) and the National Rugby League (NRL) and the English Premier League (EPL) returned to normal, with the match schedule being tighter than they usually are to compensate for the period of the coronavirus pandemic. On the other hand, the racing industry, which controls about 75% of the local gambling market, continued to operate during the Covid-19 crisis while other sports events were ceased during the pandemic.
Social Isolation and Uncertainty Boosted Online Gambling Activity of Young Australian Players
According to researchers, social isolation, boredom and constant lucrative betting promotions were among the main reasons why young male players decided to spend more money than they usually do. The survey respondents also reported being heavily exposed to gambling ads during the lockdown period, which often came as a motivation for them to gamble.
Furthermore, the lockdown period brought uncertainty for many people, with a lot of people having lost their jobs. At the same time, some of the motivations encouraging the players to gamble online, especially when it comes to the group of young men, have not gone away.
One of the researchers who carried out the survey, Dr Rebecca Jenkinson, explained that among the group of people surveyed, about 78% now gambled online. The figure represented an increase from the pre-pandemic figure that stood at 62%. According to her, it is highly unlikely for Australians to get back to the gambling participation levels from before the coronavirus pandemic anytime soon.
Over 50% of the gamblers who took part in the survey admitted that their physical and mental health had gone worse during the Covid-19 crisis. Most of their betting was on sport, with a slight increase in money spent on so-called novelty markets that allowed players to bet on other events, such as reality TV shows outcomes, and even the weather.
Austarlian Online Gambling Companies’ Profits Rise during the Covid-19 Lockdown
The major online gambling companies that offer their services in Australia warned their users to gamble responsibly and offered self-exclusion programs and deposit limits. The gambling sector has also supported the establishment of a federal national exclusion register that would provide gambling addicts with the chance to effectively suspend themselves from all legal gambling services available on the territory of Australia.
The trade representative of local bookmakers, Responsible Wagering Australia, has previously confirmed that an increase in online gambling was registered during the coronavirus pandemic, but according to the organisation, it reflected an increase in the overall gambling activity across the country.
With land-based betting and gambling outlets remaining shut over the Covid-19 crisis, people understandably preferred to migrate to online gambling platforms. According to the financial reports released by some of the largest and most popular online gambling operators in Australia, their profits rose during the lockdown.
The turnover generated by Tabcorp’s online betting services registered a 3.8% increase in the 2019/20 fiscal year, reaching AU$7.1 billion. In comparison, the company’s retail turnover suffered a 27.9% decline to AU$5.4 billion. GVC Holdings reported a 43% increase in online profits over the same period, and so did Flutter Entertainment, owner of Sportsbet, which revealed a 45% increase in its online net revenue in the first half of the year.
- Author
Daniel Williams
