In a recent interview, H2 Gambling Capital Founder Simon Holliday spoke to the affiliate Gambling.com about the current global situation. In particular, he shed light on how the industry is being affected by coronavirus (Covid-19).
The role of online has already been growing in importance, with mobile and internet penetration increasing worldwide. But with players unable to wager at most casinos for the time being, the need for a level-headed iGaming industry is even more significant.
At the time of the podcast’s recording, it was predicted that global gambling revenue is likely to fall by 11% this year.
A challenge like never before
Holliday, who has been involved in gambling since the mid-1990s, said that he has “never seen anything like this before”. He also added:
“In fact, the only year-on-year fall we’ve ever seen in the value of the global gambling sector has been 2015 when we saw gross win globally down by 1.7%, mostly driven by travel restrictions and high roller restrictions in the Macau market.”
Even with previous adversities, such as SARS and the 2008 financial crisis, gambling wasn’t – in his eyes – affected massively. By contrast, he estimated that Covid-19 could cost the industry £50 billion.
Land-based casinos need to get online…
The H2GC Founder was very aware of the need for land-based casinos, who don’t have much of an online presence, to work on building this. He noted that such retail operators account for 87% of industry revenue, but that they’re expected to suffer a 14% year-on-year decline.
Prior to the virus spreading globally, iGaming was projected to “account for 13.2% of gross win globally”. That expected figure has now been bumped up to 15.8%. In this respect, he had the following to say.
“If I’m a land-based operator, I’d like to be one with online exposure. I’d definitely want to have some online gaming, although I think we’ll see a ramp in virtual or eSports as well.”
… And the iGaming industry needs to work together
During difficult times, people turn to leaders for guidance. And right now, we all need to be leaders. It’s up to the industry, as a collective, to think rationally. Because by panicking, we’ll only make things worse.
That’s why we’re inviting you to join us for our ‘pivot, don’t panic’ call on Monday, 30th March at 3 p.m. GMT. Hosted by Lee-Ann Johnstone, who has a wealth of experience in iGaming and affiliate marketing, it’s free for you to join.
In addition to Lee-Ann, you’ll be accompanied by a variety of other key industry figureheads. We’ll be sharing how we think you can make the most out of this tough situation, while also encouraging you to share your thoughts and concerns.
You can sign up here.
*Please note that the statistics were accurate at the time of the podcast’s recording. They may since have changed.