The age of lockdowns has brought us numerous contenders for the title of “most surreal sight of 2020”. Right up there in the top five has to be the spectacle of an almost deserted Las Vegas, with the once rowdy and bustling pleasure palaces of the Strip standing empty and shuttered for months. Photographs of locked-up casino-hotels became instantly symbolic of the global predicament the gambling industry found itself in. While Sin City itself has since re-opened, the predicament remains as thorny as ever, with bricks-and-mortar casinos still closed in other parts of the world, and endless questions about when “normality” can resume.
The impact on the bottom line has already been severe. In August, it was reported in the US that casino revenue for the second quarter of 2020 showed a staggering 78.8% contraction from the previous year. In the UK, there was a sense of cautious optimism as casinos re-opened after the first lockdown period, but that feeling of hope was soon dashed by the new phase of tiered social restrictions which struck a new blow to profits – even prompting one major industry figure, Rank Group’s Jonathon Swaine to complain that those ordering restrictions “appear determined to damage the land-based betting and gaming industry for the sake of it”.
The fact is, even casinos that have managed to stay open since the initial lockdowns are a far cry from their former selves. Formerly carefree playgrounds with an air of hedonism, they now have to abide by strict health and safety protocols. It’s undeniable that one of the biggest selling points of casinos has always been their air of glamour, and if there was ever a phrase that lacks any kind of glamour or sexiness, it’s “health and safety protocols”. Of course, such measures are necessary in this virus-stricken times. But it’s perhaps inevitable that many prospective punters will be turned off at the idea of going to casinos if it means wearing masks, constant hand sanitisation, no eating or drinking on the casino floor, and limited numbers of players at tables. The very idea of craps without a close huddle of whooping, high-fiving onlookers might seem utterly unthinkable to seasoned casino customers.
With this in mind, there’s the very real risk that even when casinos properly re-open in countries like the UK, revenues will dip because of the new, off-putting reality of social restrictions which will likely persist for a good long while, despite the galloping cavalry of vaccine-wielding medics.
Of course, all of this has shifted the spotlight onto the growing significance of the already-booming online gaming sector. Back in April, in the early phase of the pandemic restrictions in the US, Fox Bet CEO Robin Chabra announced a “sharp increase” in online engagement. In October, Golden Nugget Online Gaming reported a remarkable 92% rise in revenue compared to 2019. As the company’s owner put it, “Our pandemic-proof business model keeps showing its resilience.”
This begs the question of how online casinos and bookies may evolve to accommodate the radical shift in consumer habits. Certainly, big changes have been afoot for a long time, with lawmakers and companies addressing concerns about the irresistible, round-the-clock availability of iGaming, and how this availability may potentially fuel problem gambling. Earlier in 2020, the UK implemented a ban on funding online gambling accounts with credit cards, with Gambling Commission chief executive Neil McArthur saying “Research shows that 22% of online gamblers using credit cards are problem gamblers, with even more suffering some form of gambling harm.”
Meanwhile, the Betting and Gaming Council has responded to calls for more protections for vulnerable players in 2020, including implementing increased social media advertising restrictions for its members. A new edition of the Industry Code for Socially Responsible Advertising has stipulated that online ads for gambling products must be targeted at over-25s only, unless the social platform in question has age verification in place to keep under-18s out. There has also been a surge in adverts promoting safer gambling, and the unveiling of a code of conduct for the creation of online games, scrapping problematic aspects of games such as turbo play and the ability to place several bets on several different slots games at the same time.
This has all been happening in the lead up to the British government reviewing the 2005 Gambling Act, which could lead to massive, legally enforced changes to how online gambling works in the country. But, as Betting and Gaming Council chief executive Michael Dugher has said, the industry isn’t going to sit and wait to be told what to do by politicians. Instead, these measures signify a proactive attempt to make the online landscape safer for gamblers – something that’s important now more than ever.
The measures have also been welcomed by many in the industry, such as Lloyd Butler, the boss of games developer Live 5. Speaking about the new curbs on how slots operate, he said “It forces studios to be more innovative in their games design. More than ever quality will be an important factor for players.”
Time will tell what further limits will be placed, either voluntarily by the industry or forcibly by law. Certainly, there continues to be a lot of pressure from campaigners like Matt Zarb-Cousin, director of Clean Up Gambling, who recently reiterated his hope that “the Government’s review of our gambling laws will impose sensible stake limits online, as there already are on machines.” The issue has even been highlighted by popular soap EastEnders, which has featured a storyline involving a character who loses his family home after falling into online gambling addiction. This inspired a survey which showed 56% of viewers back stricter restrictions on online gambling. There is every chance that land-based casinos will indeed bounce back after the worst of the pandemic is over and mass vaccinations allow a slow return to the glory days of glamorous nights at the roulette and baccarat tables. In the meantime, though, all eyes will be on casinos and bookies online as they cater to unprecedented times.
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