Each day, the number of COVID-19 infected people across the world is growing. Due to the measures imposed by the governments aiming to fight the pandemic, the global economy is being damaged. At times when sports events are rescheduled and entertainment venues, land based casinos and betting shops are getting closed, how can the owners of gambling business prevent losses? What changes will affect the market in 2020? Learn from the article.
Gambling market within the pandemic: Asian and Italian cases
Aiming to prevent the spreading of the coronavirus, China has closed factories and plants, imposed restrictions for cargo moving and cancelled public events. Such measures are protecting the health of citizens but destroying the economy. They have already influenced the gambling market in China, Singapore and Macao, where land based casinos were closed in February.
According to Managing partner at Spring Owl Asset Management Jason Ader, in order to reduce losses, Asian governments need to quicken the process of online games legalization. Pandemic has scared off tourists form visiting land based casinos, so there’re no expectations for sustainable income within the nearest future.
The analyst also mentioned a substantial growth of virtual gambling market. In comparison to 2019, the number of online platforms users in Asia has increased by 90%. Similar trend is taking place across the world.
Italy has become the largest source of coronavirus spreading in Europe. The country imposed strict quarantine that may be extended after April 3. Educational institutions, shopping malls and entertainment centers have been closed, transportation is limited.
As a result, the interest to gambling in the Internet has increased here. According to the data provided by GAN, the leading online gambling software provider, two weeks prior to the quarantine in Italy, the company platform processed 13,9% more bets than usual.
Online gambling is becoming more and more popular when punters can not attend land based establishments. Forecasts of H2 Gambling Capital indicate that global online gambling market share in 2020 will grow from 13,4 to 14,7%. In case the pandemic affects the second half of the year, it may increase to even 15%.
How to save the gambling business during the crisis: key advice
In order to minimize losses in the pandemic environment, owners of land based business need to take actions. Learn about the necessary measures below:
Stay active in the media space. Follow news and forecasts concerning the situation to be aware. Keep track of new measures being initiated or extended. It’s important to tell your clients how your operations can change under such imposed measures. Use your website, pages in social networks, email newsletter etc.
Review and update your action plan often. Your reaction to the situation directly influences the financial losses of the company. It’s recommended to analyze the environment before making decisions. Coronavirus will affect business anyway, but it’s you who can influence the situation and decide where the company would be after the end of the crisis.
Remain a part of the economic system. Despite the pandemic, your company is still a part of the industrial and economic system. Mind the interests of other organizations when making decisions – if you neglect them, you may damage your business. It’s important to keep contact with partners and clients during the crisis, establishing long-lasting relations.
Don’t forget about the health of the employees. Integrate measures for preventing the infecting within your company. The safest way is to shift employees to the remote work. If you can provide financial support for them during the quarantine, this will increase their trust and loyalty.
If the venue is not closing, make sure to disinfect all working spaces and provide all necessary hygienic products for the staff. The virus is airborne and spreads by contact, so it’s necessary to follow the WHO recommendations:
washing hands with a soap, disinfecting them with an anti-bactericidal liquid;
wearing single use medical masks and changing them;
drinking bottle water, washing fruits and vegetables, ensuring heat treating of food products.
Update force majeure provisions in the agreements. Take time to ensure legal protection when working with clients, suppliers and counteragents. Make sure that acting contracts involve force majeure conditions stipulating the cases preventing from fulfillment of obligations by the parties.
In order to secure your gambling business from the possible risks, ask a lawyer for advice. And work out new contracts that include paragraphs with updated force majeure conditions.
Think about logistics. Shipment segment under the pandemic is getting damaged because of deceleration of processes caused by the absence of personnel at the workplaces. Client behavior is changing as well, priorities shift towards purchasing of food and medicine.
Business owners shall understand that not all regions would be available for shipment. Members of the logistics chain need to track the situation beforehand and prepare forecasts of the transport connection and pricing policy.
Be prepared for the fundamental market change. SARS-CoV-2 has become the reason of the economic crisis in many countries. The whole world is fighting the consequences of pandemics. It’s obvious that an online segment will be developing immensely. This will involve education and trade, as well as entertainment sector engaging casino and betting.
In order to preserve your business, explore the opportunities that might open for you online. Economic security during the crisis depends on the thinking flexibility and openness to changes.
Do you want to learn more about the best crisis management methods for online betting during the pandemic? Join Betting in face of COVID-19 online conference on April 23!