Even before the coronavirus pandemic took its toll early this year, the interactive gaming market was seen to possess a bright prospect, growing steadily within the past few years. In a study conducted by Grandview Research, the web gambling market was valued at $53.7 billion in 2019 and was foreseen to grow by 11.5% annually from 2020-2027.
As technology advances, the fast-paced development of online gaming has fueled the expansion of internet casinos worldwide.
Impact of the pandemic on the US gambling market
When the coronavirus pandemic swept across the world and affected businesses worldwide, the US gambling market wasn’t spared from its adverse impact. A recent report by the American Gaming Association (AGA) highlights that health measures implemented by the state governments closed down 989 land-based casinos around the country.
In a statement issued by AGA CEO Bill Miller, he said that almost 95% of the country’s commercial casinos and 83% of tribal casinos shuttered their doors in compliance with the health and safety measures imposed by the state governments.
“In total, these mass closures will rob the U.S. economy of $43.5 billion in economic activity if American casinos remain closed for subsequent eight weeks,” Miller said in the press release.
Closure of land-based casinos
It was in early February of this year when people started to fear the spread of COVID-19 to the US. Casino operators anxiously watched as Macau’s gambling venues locked down and they turned the Taipa Strip into a town to contain the spread.
Later within the same month, Nevada Governor Steve Sisolak ordered to pack up all non-essential businesses for 28 days, including casinos. Because the virus began to spread across states, regional land-based casinos needed to close as well with most venues within the country shut after a couple of weeks.
The rise of online casinos
The COVID-19 pandemic has badly affected the gambling market with the closure of just about all of the land-based casinos within the country. Considered as a non-essential business, casinos weren’t allowed to open and needed to stop their operations on government orders.
The stoppage of land-based casinos pushed gamblers to sign up for online casino platforms.
According to New Jersey’s Division of Gaming Enforcement (DEG), internet gaming wins increased by 65.6% with $64.8 million in March as compared to the previous month’s win of $39.1 million.
In a report released by the Pennsylvania Gaming control panel, the revenue generated from internet gaming has doubled since March 2020 amidst the quarantine period. Data shows that the gross revenues from online casinos in May have increased by 30% compared to the revenue recorded in April.
Factors affecting the increase of online gambling
Some of the explanations why gamblers flock to land-based casinos are for entertainment, for the fun gaming experience, and escapism. However, the coronavirus has become a significant issue leading to a shutdown of casinos, leaving gamblers disappointed. As a result, many gamblers migrated to online casinos to play.
At present, only a couple of states have internet casinos offered, which are: New Jersey, Delaware, Pennsylvania, and Nevada. Other states only offer online sports betting which has unfortunately dropped out overnight, as most professional sports have shut down due to the pandemic.
How operators are attracting new customers online
With the temporary closure of just about all land-based casinos, gamblers are trying to find ways to gamble while in quarantine. The shutting of physical casinos opened a replacement opportunity for online casinos to flourish, with the increasing use of mobile applications and therefore the development of internet technology.
To draw in new customers to their platforms, online casino operators offer a myriad of promotions and marketing programs.
Bonus offers
Many casino operators offer irresistible enticements such as those found on https://www.americancasinoguide.com/ to increase new customer registration and reward regular website visitors. Bonus offers typically vary depending on the objectives of the website, such as:
- Registration and reload bonuses – These are offered as deposit bonuses to motivate customers to register or check in.
- Loyalty programs – These programs provide incentives to customers like additional scores, gifts or holiday offers for regularly visiting the website.
- Free spins – Offering free spins is a way to thank online casino clients and keep them coming back.
In addition to the above examples, there are other bonus programs offered by online casino operators like cashback promos, referral rewards for inviting prospective clients, Freeplay games, and even an opportunity to become one of their VIP customers.
Customer expectations in the post-pandemic setting
Gaming solutions provider Synergy Blue recently released a report entitled “The Path Forward for Casinos in a Post-COVID World” which uncovered what gamblers expect after the COVID-19 pandemic.
Synergy Blue conducted a survey on 1000 casino customers to seek out what customers would expect from casinos when they reopen and how these casinos can meet the customers’ expectations once the pandemic is over.
Among the gamblers surveyed, almost two-thirds of them said they need either online gambling options or playing mobile games (pay-to-play/free-to-play). Among those surveyed who engaged online, 93% said that they’re going to still do so even after the lockdown has lifted.
