Future business climate fuelled by US growth as Covid-19 spurs online migration
Online Gambling Quarterly analyses insight from industry experts and assesses the limited impact of the pandemic on the igaming sector
Covid-19 is still around, and it will likely impact our lives for several more months. But when it comes to the online gambling industry, it seems that Covid-19 did not really harm most market players. Yes, there was a shock in March last year and the absence of sports events in spring/summer 2020 was a big challenge for some sports-focused operators. But since then the industry seems to be recovering well – even more, it seems to flourish.
Current business climate – spring 2021
Online Gambling Quarterly analysts asked industry experts to assess the current business situation and their expectations for the next 12 months. For the current edition, they gathered the estimates and insights of 188 market insiders and experts, including a large number of C-level executives. With regular updates, this survey and its results serve as an industry barometer for the overall online gambling industry climate.
Forty-nine percent of the surveyed experts and market insiders assess the current business climate of the online gambling industry as “satisfactory” or even “poor.” Of those surveyed, 51% of the experts consider the current climate as “good.”
A downward trend that had started in Q2 2018 reached its lowest point in March 2020. But since June 2020, we have seen a continuous improvement of the business climate. The current value is the highest measured since Q1 2017. Even the Covid-related lockdowns so far seem to have no negative effects and may even be a positive push as more and more people are staying at home while land-based gambling options are closed.
Future business climate –Outlook brightens up again and no end in sight
Regarding the future business climate (in the next 12 months), 62% of the experts surveyed believe that the industry climate will be “good,” an increase compared to the current “good” share of 51%.
In 2018 and 2019, we have seen a decreasing number of experts assessing the future business climate as “good”. But after the low point in March 2020, optimism is back and pushing the “good” estimate to an astonishing 62%. It seems that regional growth expectations (e.g. US) combined with the hope that Covid-19 leads to migration to the online channel outweigh “profit-damaging” new regulations (e.g. Germany).
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