EGR Webinar: Is this the perfect storm for the gaming industry?

With land based betting shops shut, self-isolated customers and distributed workforces and the loss of sport betting, the gaming sector has undergone significant and rapid change.

The webinar was held last April 23 and speakers were: Dmitry Belianin, CMO, Parimatch International, Keith Whyte, executive director, National Council on Problem Gambling, Emily Arden-Close, senior lecturer, department of psychology, Bournemouth University.
Moderator was Nick Garner, founder, Rize Digital.

The first issue treated was: Understanding what history can teach about the financial and social impact of Covid-19 and their relevance to today’s market.

These are some of the highlights:

Keith Whyte said that there will be market effects on gambling, and talked about US. "Gambling in US has always been controversial."
With the financial crisis, gambling will open up and there is a very open discussion on legislation, with an inclusive message. "In the US we are looking for a big expansion."

He added that gambling is restricted in several states but more states need to get cash, so they will legalize the activity. He also highlighted that the storm impacts everybody differently. "For people with gambling problems, it can be a perfect storm in the negative sense."  Besides, he commented that it wouldn´t be surprising if, post COVID; other countries like Japan or Singapore open casinos.

Dmitry Belianin talked about the CIS markets. "The CIS market is very complex. Everything comes in waves. Compared to Europe or US, where people spend an amount of money or sportsbetting or entertainment, in CIS or Africa they spend smaller amounts of money." He added that people try to evolve and the sportsbetting companies support them to achieve their goals. "We bring the best possible services for people during the crisis. Gambling is very resilient." Belianin added: "I feel like it increased opportunities for many brands. For sportsbetting companies, it is the right time to find their options. Optimize their portfolios, marketing budgets and efforts."

When talking about post-COVID reaction, he said that Brazil and other emerging countries that don´t have a legislation will react. "Millions of dollars are going to off-shore countries. It is a huge amount of pressure going on in order to create a gambling legislation."

Then, Emily Arden-Close gave an opinion about legislation: "Any legislation limiting gambling might continue during the period of lockdown and then it might become law in the future."  She also remarked the importance of customer education to have a responsible gambling behaviour.

With regard to the impact on online and land-based casinos, Belianin said: "It is no secret that most of the gambling companies are struggling with the situation. The once who have retail are not having a good time. They dropped 80% or more." He remarked that, due to COVID, they are working on other options. "Online gambling is doing really well," he assured.

Whyte affirmed that mergers and acquisitions are likely to increase and, and agreed with Belanin on the fact that there has been an enormous growth on online gambling.

When consulted about new habits, Arden-Close said: "It's hard to put a number. Some people who have gambled before might moved to online gambling. However, I think it won´t replace traditional gambling due to the fact that the social part cannot be totally replaced."

Belianin then talked about the kind of new players and characteristics: "Just before COVID, in December we shut down a retail. 30% doubled their spending in the online. It was more comfortable for them (mobile gaming, e-sports). One of their key features of the new audience is that they are in search of entertainment."

Issues like responsible gaming, new opportunities and the financial implications of the pandemic for the gaming industry were also treated.