From sports betting to casinos?
The big championships are gradually returning to the field of play and, with it, sports betting. During this period of confinement there has been a lot of speculation about the jump to casino games by the usual professional gamblers. A first study confirms that there is no evidence that this is true.
A study conducted in Germany, Norway, Finland and Sweden reveals that regular sports betting users stopped betting during the COVID-19 crisis. ©Frank Busch/Unsplash
"Gambling before and during the COVId-19 pandemic among regular sports betting users: an empirical study based on behavioral dataâ : this is the title of the first study on the pattern change of professional bettors during quarantine. Published in English in the International Journal of Mental Health and Addictions, the researchers used a sample of 5396 users who had placed at least one sports bet in 5 of the 10 possible weeks (from January 1 to March 7) in a given online portal with presence in Sweden, Norway, Finland and Germany .
The analysis reveals that the percentage of regular bettors who also played in the casino mode before the confinement was 75-79 percent, a figure that varies depending on the number of weeks wagered. Thus, 75% corresponds to those users who bet 5 of the 10 weeks and 79, those who bet during the 10 weeks. However, the researchers noticed a decrease in the percentages after the announcement of the confinement of between 10 and 20 percent.
âThese results suggest that speculation about an increase in time and money spent on gambling as a result of confinement at home for long periods of time is unfounded.â Auer, M., Malischnig, D. & Griffiths, M.D. Before and During the COVID-19 Pandemic Among European Regular Sports Bettors: An Empirical Study Using Behavioral Tracking Data. Int J Ment Health Addiction (2020). https://doi.org/10.1007/s11469-020-00327-8 , under license CC BY 4.0 .
The study suggests that they may be several reasons for this decrease in the number of bets during the confinement by users as a lower purchasing power, wanting to spend more time with the family or a greater modesty when betting and playing in front of their relatives.
However, it is hasty to draw conclusions that refute a possible relationship between confinement at home due to the pandemic and the increase in time and capital invested in online casino games as several European governments have warned and echoed by the media. This first study collect data from a single online operator among an offer that exceeds in number, for example, that of the Spanish market.
The investigation leaves out countries such as the United Kingdom, France or Italy , which, according to the latest EGBA report on the state of online gambling in Europe , account for the largest market shares (34.2%, 8.8% and 8.1% respectively). Germany is the only country in the sample with a high percentage of players (11.1%), while Sweden (5.2%) and Finland (4.1%) have a modest share. In all European countries, sports betting is positioned as the most recurrent online modality to earn money.
The study comes at a time of maximum concern and discontent in the industry about government measures in various countries in an attempt to putting a stop to gambling addiction induced by confinement during the pandemic. In Sweden, controversy was breaking out over a new wave of government regulations that, this time, applied limits on deposits and reduction of bonus amounts , measures that the sector branded counterproductive for encouraging illegal online gambling.
In New Zealand the government approved the Royal Decree that saw the light on April 1 in the BOE and by which the green light was given to the ban on casino bonuses during the state of alarm . Alberto GarzoÌn, Minister of Consumption, alleged this decision to an alleged increase in bets on casino and poker games after the cancellation of sports events . In the parliamentary control session of June 17 GarzoÌn alluded to a possible normalization of Article 37 of Royal Decree 11/20 on the state of alarm in the advertising legislation of the sector still pending approval.
Back to normal?
To the joy of football lovers, a few days ago it was announced the LaLiga Santander resumption in June after a break forced by the current COVID-19 crisis. The German Bundesliga returned to the screens in May. After several failed attempts due to the confirmation of positives in players and employees, the Premier League returns to the field grounds on June 17 after a 100-day hiatus.
It is still too early to make accounts of the economic repercussions that the cancellation of events will mean for the sport. The Premier League and Serie A, two of the most prestigious European football leagues in the world, foresee a losses of more than 1,000 million euros each , derived from revenues from television rights, ticket sales and other commercial activities. If the 2019/2020 season does not conclude, the figure could increase to 7,000 million euros. Manchester United announced losses of 3.7 million, while those of the Spanish clubs are around 40 and 75 million euros.
Not without controversy involved, the gambling halls and physical casinos will be able to open their doors in phase 3 . The closure of salons and the cancellation of major sports championships has resulted in significant losses for the sector . With the 2nd quarter still in progress, operators have not yet reported the economic sum that the cancellation of sports events and live game broadcasts has meant to them, although the sector points to a 50 to 80% reduction in income by the way .
