The Impact of Pandemics on Online Gambling Trends
The onset of the COVID-19 pandemic in early 2020 significantly disrupted many facets of everyday life across the globe. As countries implemented lockdowns and social distancing measures to slow the spread of the virus, people were forced to spend more time at home and online. One industry that saw major impacts from this shift was online gambling.
As traditional land-based casinos and betting shops were shuttered during lockdowns, many gamblers transitioned their activities online. The sudden influx of customers drove a huge boost in revenues and traffic for online gambling sites like RubyFortune and apps in 2020 and 2021. Now, as we enter 2023 over two years into the pandemic, it is clear that many of the shifts in online gambling spurred by COVID-19 are likely here to stay.
Accelerated Growth in Online Gambling Revenues
The global online gambling industry has been on a steady growth trajectory for years, but COVID-19 supercharged the pace of expansion. One report estimated that over the first 12 months of the pandemic, online gambling revenue grew by over 42% globally compared to pre-pandemic projections, reaching over $66 billion.
While some of this growth came from existing online gamblers spending more time and money on sites during lockdowns, millions of new users also opened online betting accounts for the first time. Research suggests over 100 million people created accounts with legal gambling sites worldwide during the first year of the pandemic.
Many gambling companies also reported that new pandemic-era customers tended to be younger than existing players. Casino, sports betting, poker, and other gaming sites attracted unprecedented interest from millennials and Gen Z adults who were stuck at home with little to occupy their time. These novice bettors got their first taste of online gambling during an unusual, isolated period — but data shows many have continued even after lockdowns were lifted.
Lasting Impacts on Player Behavior and Preferences
While early pandemic gambling boosts were fueled partly by short-term boredom and opportunity, experts say resulting shifts in attitudes and behaviors will have ongoing impacts even post-COVID. Surveys reveal over 70% of customers who tried online betting sites for the first time during the pandemic plan to continue using them to some degree, citing factors like convenience and broader game/bet offerings.
Some specific ways the pandemic seems to have durably shaped online kasinot behaviors include:
- Increased preference for mobile gambling — Stuck at home during lockdowns, many new players opted to place wagers via gambling apps on smartphones and tablets rather than desktop computers. Even as disruption winds down, mobile remains the fastest growing online gambling segment.
- Less restrictive attitudes toward internet gambling — Taking the leap into online betting for the first time allowed many novice gamblers to become more comfortable with the activity. Experts say this genie will be impossible to put back in the bottle.
- Higher awareness and utilization of responsible gambling tools — To address risks associated with lockdown boredom and isolation, many sites promoted responsible gambling resources more aggressively. This increased familiarity and use of tools like deposit limits, cool off periods, and self-exclusion is expected to benefit customer welfare over the long term.
- Accelerated adoption of live dealer games — When physical casinos closed, interest spiked in online live dealer table games, allowing remotely located players to experience simulations of the in-person casino environment. These computationally intense streams are likely to remain popular even as patrons return to traditional casinos over time.
Ongoing Uncertainty and Volatility
While the pandemic has already had clear impacts on online gambling, the ultimate long-term implications remain uncertain given broader economic volatility. Recession fears have emerged in 2023 as key indicators have shown an increased likelihood of a downturn this year or next.
Historical data reveals that gambling activity tends to decline during recessions as consumers become more cautious with discretionary spending. However, online gambling revenues have proven more resilient to downturns than land-based revenues in the past.
Experts are unsure whether pandemic-era shifts to remote playing will help or hurt the industry if checkbooks slam shut.
One area of relative certainty is continued strength in the mobile and live dealer gaming verticals discussed earlier. These tech-forward segments with built-in advantages for customer convenience and retention seem poised to fare well even if broader consumer confidence and risk appetite declines temporarily. Players also may cut back on higher-risk, high-cost games more quickly than comparatively affordable lottery-style options.
Ultimately, while pandemic impacts reshaped online gambling rapidly, only time will tell how current volatility and uncertainty influences longer-term trends. Players and gambling firms alike face ongoing evolution in preferences, tech capabilities, and regulatory regimes across various global markets. One certainty though is that the COVID-19 expansion marked a key inflection point for accelerating digital gambling adoption across existing and new demographics.