Coronavirus Concerns Leads To 11% Drop In Forecasted Global Gambling Revenues

Coronavirus Concerns Leads To 11% Drop In Forecasted Global Gambling Revenues

The FINANCIAL -- Global concerns about the coronavirus (COVID19) have led to a 11% drop in forecasted global gambling revenues in 2020* – with 2020 global gambling gross win downgraded from its pre-COVID19 forecasts of $473bn to $421bn (close to 2016 levels), according to industry analysts H2 Gambling Capital’s new weekly COVID Impact Tracker.

While H2 Gambling Capital expect an increase in online activity, with the online gambling sector moving from 13.2% to a 15.7% share of global gambling revenue, the unprecedented shutdown of major sports events across the globe will hit overall revenues across the entire gambling sector (both offline and online).

Currently major sports events suspended or canceled due to the virus include football’s the English Premier League, Spain’s la Liga, Germany’s Bundesliga and the European Champions League, as well as The Masters golf major, and the UK’s Grand National horserace – all major events for European bookmakers.

In 2018, EGBA members generated €2.36bn in online sports betting revenue, accounting for 44% of their total online gambling revenues**.

“It’s sad that so many iconic sporting events are being cancelled or suspended and it will obviously have a negative impact on our sector. But the safety and health of the public is obviously more important and we fully support the sporting authorities and others in the difficult decisions they face right now”, said Maarten Haijer, Secretary General of the European Gaming and Betting Association (EGBA).

A recent Eurobarometer survey for the European Commission has found that 40% of Europeans use the internet for entertainment purposes, including online gambling.

The survey “Europeans’ attitudes towards cyber security” has a dedicated section (pages 9-32) about internet use amongst Europeans, as well as the devices they use for accessing the internet and the activities they do online.

Internet use is on the rise: 76% of Europeans use the internet on a daily basis and a further 9% use it often or sometimes.
Smartphones are the most popular means of accessing the internet: 85% of Europeans access the internet through smartphones, followed by laptops (51%), desktops (41%) and tablets (35%).

Social activities and online banking are the most common online activities: The majority of Europeans use the internet for email use (80%), followed by reading news (62%), accessing social networks (62%), online banking (61%), buying goods or services (55%), messaging (51%), phone and video calls (41%) and entertainment (40%), including video/audio streaming and online gambling.
This trend towards greater internet and smartphone use is also reflected in the EU gambling market. In 2018, 23% of EU gambling activity was online – up from 21% in 2017 – with smartphone and tablets use increasing to 43% of all online bets – up from 39% in 2017.

About EGBA

The European Gaming and Betting Association (EGBA) is the Brussels-based trade association representing the leading online gaming and betting operators established, licensed and regulated within the EU, including bet365, Betsson Group, GVC Holdings PLC, Kindred Group Plc, and William Hill. The Swedish Trade Association for Online Gambling (BOS) is an affiliate member of EGBA. EGBA works together with national and EU authorities and other stakeholders towards a well-regulated online gambling market which provides a high level of consumer protection and takes into account the reality of the digital economy and consumer demand. Today, EGBA’s member companies together have more than 16.5 million customers in Europe.

Author: The FINANCIAL


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