How the gambling industry is bouncing back

  • Updated
  • By Hannah Timoney
How the gambling industry is bouncing back

The global economy took a hit with the novel coronavirus at the beginning of this year, and the gambling industry was no exception. Many casinos and bingo halls were forced to close for a number of months, and, while online profits saw an increase on the year, this did nothing to offset the overall decline in revenue from land-based operations. But latest reports are promising and show the industry bouncing back.

Rank Group, the company behind Grosvenor Casinos and Mecca, has recently announced that it is beginning to “successfully emerge” from the economic downturn resulting from lock down and the pandemic. This comes as casinos and bingo halls reopen, with 72 of 77 Mecca venues opening their doors for business again, in time for the huge and long awaited Mecca Dream Come True promotion.

This promotion is available both in person and online, and gives players the opportunity to win big as they play! With free wheel spins, the premium wheel, and tons of celebrity packed events and prizes this promotion is an exciting one and is sure to excite us all after months away from our favourite bingo nights.

Grosvenor casinos, also a part of Rank group, have been seeing profits totalling 75% of last year’s figures throughout July and August, an encouraging return to business after months of closure. This profit margin is set to grow with “an increase in footfall expected once social distancing and other supply constraints reduce and customer confidence returns.”

In mid-August, GVC announced an overall decline in profits of 11%, despite a healthy 19% increase in internet revenue from the previous year. This is still promising however, as it shows the sustainability of the market, as it continues to thrive even during tough times and the closure of land-based venues. 

A new report from the Gambling Commission suggests the industry is bouncing back from the lock down, despite a downward trend during the virus’ peak months. The return of sports is drawing sports betting back, and casino gambling with it.

This is supported by Slingo provider, Gaming Realms’ recent figures, which show a 66% rise in revenue in the first half of the year, and aims to continue this growth with expansion into the US market during the next 18-24 months. Gaming Realms’ revenue rise is joined by the Gauselmann Group, who experienced a 6.7% year-on-year rise.

While these groups have seen encouraging profit-margins following the lock down, Austrian gaming giant Novomatic saw a 36.1% fall in revenue for the first 6 months when compared to the previous year. 

Overall, things are looking promising for the gambling industry, and profits are steadily increasing with the lifting of lock down restrictions and the returning to normalcy. It is expected that online casinos will carry on seeing rising profit margins and patronage, and that land-based venues will witness the long awaited return on their clientele.