The outbreak of the Coronavirus in 2020 brought the world to a halt. It then went on to change our lives in ways that we had ever imagined. Both the people and businesses in Canada were greatly affected and there were clear winners and losers.
The gambling industry, an industry that knows all about winning and losses, was one of the most affected industries during the pandemic. In this article, we will be looking at how the pandemic affected sports betting, top land-based casinos, the best online casino in Canada, and more.
What were the challenges faced by stakeholders in the industry? Were there any winners in the industry? What does the future hold for the Canadian gambling industry? Let’s find out.
Land-based casinos
From the beginning of the coronavirus pandemic, the future of land-based casinos in Canada looked bleak. At first, physical casinos were required to operate under strict regulations.
These included a limit on the number of players that could get in, continuous sanitation, wider spaces between gaming equipment, and closing times. Also, the live shows, nightclubs, valet services, and other favorite attractions of casino goers were no longer available.
But these casinos thrive on the gathering of people, exchange of physical money, touching of slot levers, and more. So, it was no surprise that several casinos ultimately had to be closed as the pandemic grew worse. As sad as it was, it was necessary to curb the spread of the pandemic.
Online casinos
As it got increasingly hard to visit brick-and-mortar casinos, casino lovers started seeing online casinos as the perfect alternative. Online casinos were the perfect solution because they allowed gamblers to continue to enjoy their favorite casino games from the comfort of their homes. These games include slot, blackjack, roulette, poker, and more.
As a result, the number of new players at online casinos surged during the pandemic. Since gambling websites offer lower bet limits, several new online punters were not gambling as much money as they did in physical casinos. However, the increased popularity of online casinos still became an issue for both the gambling industry and the regulators.
The major concern was that there was a great chance that ex gamblers and high-risk problem gamblers could go back to gambling. Another issue was that players who only played occasionally would increase the frequency at which they gambled. When these issues were added to the increased unemployment rate during this period, the vulnerability of Canadian gamblers became much more evident.
Hence, the regulators felt that steps had to be taken to assist Canadians who were struggling to resist the urge to play with real money. Several established gambling companies did their part by revising their marketing strategies. These online casinos showed responsibility and ethics by avoiding adverts that could take advantage of vulnerable players during the Coronavirus pandemic.
Sports betting
Sports betting is another branch of the gambling industry that was affected by the pandemic. During the early days of the lockdown, fans were kept out of the stadiums while the major leagues continued. But by mid-March, stadiums around the world had to be closed for good with games and races being postponed indefinitely.
This caused a massive decline in sports betting as there was simply nothing for fans to bet on. Even esports wasn’t spared. The major esports competitions were also canceled.
However, it didn’t take long for sports betting to bounce back. In July 2020, the major leagues around the world restarted starting with the European leagues. Though cases of Coronavirus were reported in football teams, for instance, the organizers found a way to keep it going. The future hasn’t been threatened ever since.
Lottery and scratch card
The impact of the COVID-19 pandemic on lottery tickets and scratch cards was varying. In Canada, the trends varied by region. By July 2020, sales of lottery tickets had fallen in Manitoba while the sales of scratch cards rose.
This trend was thought to be a result of the ease of buying scratch cards at checkout in supermarkets. Additionally, there was news that the lockdown prevented some lottery winners from getting their rewards. As a result, several were discouraged from purchasing lottery tickets. To stop this trend, the Canadian Lottery Corporation opted to give lottery winners more time to claim their winnings.
B2B suppliers and vendors
There were a lot of uncertainties surrounding the Canadian gambling industry during the lockdown. This affected the B2B suppliers and vendors as the biggest brands weren’t interested in new technologies, establishing new partnerships, and investing in new software.
Also, the industry didn’t experience any significant growth as the growing brands were unable to get the funding and partnership they needed to take the next step in their growth. The more successful B2Bs didn’t have it any better. They lost both revenue and customers because their investors, partners, and clients also suffered from the financial implications of the pandemic.
The current state of the Canadian gambling industry
Gambling is one of the favorite activities of Canadians. According to reports, 60% of Canadians gamble regularly and spend an average sum of $100 on casino games monthly. The industry gets a revenue worth $31 billion annually with 15% being in taxes. But this was before the worldwide coronavirus pandemic.
Unfortunately, the country wasn’t able to recover from the Coronavirus pandemic quickly enough. In the spring of 2021, the Great Canadian Gaming Corp was ordered to shut down its Casino Nova Scotia. Just about a week before then, the Maritime Province had requested that the corporation closed its casino in Halifax.
According to IBISWorld, the revenue of the Canadian gambling industry will plummet in the next five years as a result of the closure of gambling establishments. Also, IBISWorld expects the forced closure of casinos and the difficulty of reopening them in 2021 to result in a drop in the industry’s average profit margin.
The casinos in Ontario started a gradual reopening process in July 2021 amidst several uncertainties. We wish both staff and customers the very best.
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