Covid-19 hit every industry hard, and gambling was no different. Here’s how Canada’s casinos managed the pandemic, and what effects it had on the business.
The COVID-19 pandemic hit the world of business hard, and every industry around the world was affected. Global trade fell by 8.9 percent, and companies from all areas of the economy felt the squeeze as people were forced to stay at home to avoid spreading the disease.
However, while every business was impacted, the COVID-19 pandemic didn’t always affect companies for worse. Some industries saw increased revenues as a result of the changing behaviour of consumers during lockdowns.
Online shopping became more common, for example, leading to increased profits for Amazon, while the sudden need for video-conferencing software was beneficial to companies such as Microsoft. So where does the gambling industry stand amidst all this?
In Canada, gambling was greatly affected by the pandemic in many ways. Here’s how the industry managed COVID-19, and the impacts the disease had on gambling across the country.
The move to online games
As COVID-19 spread throughout Canada, physical businesses had to close to halt the disease’s progress. Casinos were hit hard; in Ontario, for example, there was a wave of closures in March 2020 and another in January 2022.
Many casinos closed multiple times in between these two major waves as well, leading customers to have to search for online options. However, the move to online gambling was smaller than one might expect.
Only around 17 percent of gamblers moved to playing online during the COVID-19 lockdowns, with roughly a third stopping gambling altogether instead. In other words, the cost of losing physical customers was not made up by the impact of those customers joining other areas of gambling.
However, this was still a major boost to the online market, as the 17 percent of gamblers who began playing online represent a significant number of Canadians. Many new providers launched, leaving customers with an increase in choice.
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The financial impact of COVID-19
With some customers leaving gambling behind during COVID-19 and not being replaced by new users, the gambling industry took a financial hit. In 2019, gambling in Canada generated around $13.6 billion in net revenue; a small decrease of just under six percent compared to the year before.
In 2020, the gambling industry generated less than $6.9 billion in net revenue; a massive drop of nearly 50 percent. This was the lowest Canada’s gaming sector had taken in since 1997, and a major blow to businesses across the industry.
Physical casinos were, unsurprisingly, the worst hit. They generated over $8.3 billion in net revenue in 2019, but the pandemic dropped this down to just $864 million; a fall of almost 90 percent.
While online gambling saw net revenues more than double, from around $421 million to just under $1.1 billion, this was nowhere close to the more than $7 billion lost by casinos. The only sector of the gambling industry that remained unchanged was lotteries, which saw a small increase of 1.7 percent in their net revenues.
The loss of live sport and the impact on betting
Between March and August 2020, most live sport was suspended due to the COVID-19 pandemic, which had serious impacts on sports betting. This is one of the most popular forms of gambling in Canada, with almost eight percent of the population taking part in it, so the loss of live sport was a major blow.
Unsurprisingly, there was a noticeable fall in sports betting between early 2020 and the middle of the year when live sport was suspended. However, while there was a significant rise in the activity in August when sports began again, sports betting was still below the level it was at the beginning of the year.
This suggests that when sports betting became harder, a significant number of people left the hobby altogether. There was also very little impact on other forms of gambling, with sports betters unlikely to replace the hobby with online betting.
Conclusion
COVID-19 was a major blow to most of the gambling industry in Canada, but online gaming saw a huge increase in revenue as people were forced to remain home. The sector is largely still recovering, particularly physical casinos, but it is now in a position of strength.
The changes caused by the pandemic have led to a much larger online portion of the gambling industry, meaning customers are now spoilt for choice when it comes to choosing a game. If you need help with this, head to Casino.org for tips and advice.
Disclaimer:
CBD:
Qrius does not provide medical advice.
The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlaws the recreational use of cannabis products in India. CBD oil, manufactured under a license issued by the Drugs and Cosmetics Act, 1940, can be legally used in India for medicinal purposes only with a prescription, subject to specific conditions. Kindly refer to the legalities here.
The information on this website is for informational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or another qualified health provider with any questions regarding a medical condition or treatment. Never disregard professional medical advice or delay seeking it because of something you have read on this website.
Gambling:
As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman, and Sikkim, prohibit gambling. Land-based casinos are legalized in Goa and Daman under the Goa, Daman and Diu Public Gambling Act 1976. In Sikkim, land-based casinos, online gambling, and e-gaming (games of chance) are legalized under the Sikkim Online Gaming (Regulation) Rules 2009. Only some Indian states have legalized online/regular lotteries, subject to state laws. Refer to the legalities here. Horse racing and betting on horse racing, including online betting, is permitted only in licensed premises in select states. Refer to the 1996 Supreme Court judgment for more information.
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