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Boost in gambing stocks bolster the industry

Boost in gambing stocks bolster the industry

by Kally in Industry | 17 April 2020

Mandatory lockdowns and social distancing regulations are being observed across the world due to the COVID-19 pandemic affecting the globe. While the measures are sure to aid in the prevention of the spread of the disease, it has done no favours to the economies of so many affected countries across Europe, America, Australasia and Africa.

Land-based casinos have felt the burn of the measures, with projections showing losses of up to 90% in revenues in April at some of the prominent American groups based in Macau, since private gatherings were banned in March.

However, it seems that operators running online casino sites will receive brief relief to their coffers, as digital gaming has peaked over this time.

Big boost to Industry

The American stock markets have shown some positive trends in the online gambling sector. On Monday the Nasdaq closed on a 7.3% growth in the industry (540 points), while the Dow Jones displayed a 7.6% hike (1,600 points), with prominent Casino brands such as MGM Resorts International, Las Vegas Sands, and Wynn Resorts experiencing an increase in share prices even though their Macau-based casinos were forced into shut down by the Chinese government.

Online casinos have not been the only ones experiencing the boost, as both IGT and Scientific Games have experienced growth in share values by 5.66% and 27.6%, respectively. This shows that the trend is being shared by the game providers too.

Across the water in Europe, where most prominent EU countries have felt the hard effects of the shutdowns, the online igaming industry has remained intact and follows the trends noted in the USA.

Spanish authorities have imposed tough regulations on marketing for the industry and the UK Gaming Commission has ramped up their responsible gambling protocols too, but the fact that online services are all citizens can access at the moment while confined to their homes, has kept the industry alive.

The online casino industry is much bigger in the EU and UK than anywhere in the world, so the positive effects of the industry boom will be a slightly brighter light on each country in this corner of the world.

A light in the darkness

While the world is reeling in uncertainty and negativity, it is worth celebrating the fact that there are industries that have managed to weather the storm and in so doing, have boosted the economy in their respective regions. The online gambling industry is worth billions to the world economy every year, so good news about revenue spikes only does the global economy well.

Where casinos run both online and terrestrial business models, their igaming sector has had to be leaned on heavily in this time and is sure to be the factor that will keep their doors open in the long term.

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