The onset of the COVID-19 pandemic had a significant impact on sportsbooks and gamblers. Casino closures, for example, influenced most jurisdictions to reassess legislations restricting or limiting online gambling altogether. The new US regulated sports betting market found itself in a dilemma, with door closed and a small opportunity to wager for the few that managed to remain open.
Online gambling limitations were eased in many areas, and bettors who had never thought of gambling over the internet quickly unveiled the perks of turning to the online casino space.
The internet offers clients with a more competitive platform and one where bonuses and free plays are used to lure new clients. Location and general ambiance are no longer considered as important factors to mull over since one can easily play their favorite games at the comfort of their homes.
The CEO of Zamedia N.V., Erik King, argued that the casino industry workers were initially worried about the uncertainty and duration that lockdown restrictions will take. However, the advantage of having online properties is that there is a surge in traffic since casino aficionados are more than willing to give digital casino versions a try, he added.
The rising online numbers were not just the trend in North America as King noted that similar trends were evident across their global network.
Still, King noted that traffic surges were global, with their Casinofinder.io and Zamsino products each showing some of the highest numbers to date. Even as the COVID-19 restrictions ease, King indicated that their data continues to prove that individuals who have chosen to rely on the internet are relatively pleased and that they are not hesitant to return.
Moreover, King added that one important trend of interest was that they saw similar advantages in Australia and New Zealand with their KiwiSlots brand. While these areas failed to experience the same impact as other outer jurisdictions, they still matched the global shift toward digital and mobile gambling offers.
US Sports Betting Big Players Bank on iGaming Expansion
According to this year’s Q1 earnings report, Jason Robins, DraftKings CEO, increased the $39 billion total addressable US gambling market valuation to $62 billion. Now, bring in the $5 billion emerging Canadian market valuation, and this value shoots to $67 billion. The announcement increased DraftKings’ stock prices. Based on these numbers, it proved that iGaming could easily surpass sports betting with regards to online gaming potential to bring in more revenue.
In his presentation, the astounding number was indicated to include $22 billion in online sports betting with an opportunity to amass about $40 billion in iGaming revenue.
To clarify, iGaming refers to any type of digital betting. This includes casino games, virtual slot machines, sports betting and poker rooms. The proposed DraftKings valuation breakdown distinguishes sports betting from all other forms of iGaming options to reveal the notion that the real deal lies beyond the world of sports betting.
A look at the pre-pandemic Nevada revenue from casino gaming report from October 2018 shows that sports betting contributed less than 3% ($29.5 million) out of the $1.062 billion net revenue collected. On the other hand, slot machines accounted for more than half of the total revenue, followed by Blackjack (12%).
Clearly, revenue margins tied to sports betting are lower compared to those of other casino offerings. Moreover, blackjack and slot machines are fast and action-packed in ideal ways that provide gamblers with many opportunities to gamble. An investor can burn through about $100 on a blackjack table within a short period, whereas a gambler wagering $100 on a football game will be left occupied for some time.
The “frequency of wagering” argument also shows why in-gaming is so common and loved in most mature European markers. Top brands willingly support this kind of betting because gamblers expect to rollover their winnings or go after their losses in a situation that generally favors the house.
Partnerships between the official league data providers and sportsbook companies are setting the platform for an enhanced in-game betting experience, especially for North American sports.
With legislators relying on taxable revenue as a factor in their arguments favoring legalized sports betting, the dollar signs painted all over the online casino space are difficult to ignore.