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The impact of Covid-19 on online casinos

16 December, 2024

While the COVID-19 pandemic severely threatened several industries, online casinos seemed to thrive. BestCasino experts have been analysing the British gambling landscape to determine the long-term impact of this global pandemic on the UK iGaming sector. Most importantly, they have found how the online casino shift changed how UK players gamble and their future trajectory.

Highlights by the UK Gambling Commission 

  • In 2019, before the pandemic, the British online gambling industry revenue was £5.7 billion.
  • Online gaming activity increased by 17% between March 2020 and April 2021.
  • Time spent playing online slots increased by 8%.
  • Between March 2020 and December 2021, we witnessed one of the most extensive records of first-time UK gamblers.  
  • The number of people with gambling addictions increased by 1.49% during covid-19 lockdowns.
  • More games were created to serve diverse gaming needs.
  • Live casino popularity increased by 47%.

Effect of Covid-19 on the economy of gambling

Since the COVID-19 pandemic, people’s spending habits changed drastically. To prevent the outbreak, the UK government exerted stringent measures, including lockdowns, that affected all types of businesses. 

A report by the Office of National Statistics in the UK indicated that all sectors of the economy experienced unprecedented shock. At the height of the first national lockdown, Britain’s GDP fell by 19.4%. Therefore, the average British person had less money in their pockets. 

While Brits had less money to spend on gambling, more new UK residents joined online casino platforms for entertainment. Traditional forms of entertainment like concerts, theatres, restaurants & social events were restricted, so people turned online. Additionally, in 2020, existing online casino members spent 7% more on gambling than in 2019. 

As lockdowns lifted, the UK economy increased by 0.7%. The players who had developed a liking for gambling during lockdowns continued to gamble, and with the stable economy, they had more money in their pockets to gamble. 

In 2019, statistics estimated that 0.6% of gamblers in Britain had a problem with gambling. According to the Problem Gambling Severity Index (PGSI), an estimated 2.8% of British casino players had a gambling-related problem. 

In the first quarter of 2022, post-COVID, the National Gambling Treatment Services in the UK attended to 7,072 cases of severe gambling addiction. Additionally, this report shows that the top 5 casinos in Britain contributed over 100 million dollars to help players with gambling problems. 

The solitary nature of lockdowns and casino games being so readily available contributed to the rise of gambling addiction rates.

  • Instead of playing for leisure, gamblers used online casinos as a constant source of pleasure and adrenaline.
  • Some players who had lost their jobs during the COVID-19 outbreak started gambling as a means of making money instead of fun. 
  • The social and financial stress associated with the outbreak pushed some users to gamble as a way of mental or emotional escape.
  • Previous gambling addicts who had already recovered relapsed in 2020 to 2021.

A rise of new types of online casino games 

In the spring of 2020, gaming emerged as one of the most popular activities online. As both young and old generations joined the gambling world, casinos had to figure out how to cater to their gaming needs. 

Several thousand games were released between 2020 and 2021, with online slots being the most popular. Additionally, new software vendors emerged to meet the huge demand for casino games.

Online slots creation 

Many new slot mechanisms and bonus features were innovated during the pandemic. Classic slots were no longer intriguing, and gamblers sought new ways to play reels and form wins.

It was during this era that a lot of hybrid online slots were created. For example, Slingo games combine the bingo mechanism but are built like a slot machine. Slingo machines had a warm reception from all age groups (older people who love bingo and younger generations who like slots).

Rise of arcade games 

Software providers started creating online versions of popular arcade games to give players an authentic casino experience like in a land-based casino. Arcade games gave gamblers a new way to play and win the simplest way possible. Online casino games include card games, scratchcards, slots, bubble popping and timing games.

Some popular arcade games include Aviator, Spaceman, Donkey Dash and Maverick. 

Live casino game shows for interaction.

Since people could no longer go to physical casinos and join fellow players at tables, software companies had to improve the live casino experience. Therefore, manufacturers like Evolution Gaming and Playtech developed a wide range of new live games hosted by dealers in real-time. 

  • Live game shows with TV-like presentations – Vibrant and colourful games with friendly hosts and non-conventional casino games. For example, Deal or No Deal Live, Crazy Coin Flip Live, Crazy Time Live, Alice and the Wonderland Live etc.
  • Live casino versions of slots – Sweet Bonanza Live, Dream Catcher Live, Epic Chilli Spins Live and Gonzo’s Quest Live.
  • Live board games—These are Live versions of everyday board games, such as Monopoly, Snakes and Ladders, and Monopoly Baller.
  • Live table game variants – Advanced regular roulette, blackjack and baccarat variants. Eg Lightning Roulette, Power Blackjack, Lightning Baccarat.

The live chat feature on live casino games allows players to interact with the live host and other players. Most importantly, the software developers ensured the games were multi-tabled and multi-player, with bet-behind capabilities. 

Summary

To sum up, COVID-19 brought about a pivotal transformation in online gaming. The industry has since recovered, but we look forward to more innovations in the sector, from responsible gambling tools to player protection policies and game design.