The coronavirus pandemic has ended up delivering a lethal yet unexpected blow to the sports betting industry. According to many industry pundits, 2020 was the year when sports betting was poised to take off at least in the US. The cancellation of what is collectively known as March Madness, a collection of sporting events like college basketball, NBA, MLB, and NHL, has meant that the sports betting industry is now left to find creative ways to stay afloat.
However, the so-called lull isn’t just for sports betting businesses; media business has felt the blow too. Both industries are now seen rushing to cut costs and reduce capital spending just so that their business could remain afloat. Furthermore, a couple of services are even experimenting with online gambling. Pivoting to online gambling may seem easy, but in reality, despite how many online casinos like netticasinot are making it in the US, switching business models is a legal challenge.
Sports Gambling Was Going to be a Major Source of Revenue
Not very long ago, many state governments were looking to sports gambling as a brand new source of excellent revenue. Casino and betting operators were seen as being amongst the fastest growing businesses. However, suddenly the COVID-19 virus has meant that this once eager to grow industry is straining to even keep the lights on.
The lockdowns across the US and even the world over has meant that leisure spending has struck a brick wall which not too long ago signed a sign of relief as the Supreme Court cleared a path for sports wagers. That landmark decision was good news for casino and gambling executives that saw the industry grow exponentially.
2020 in the words of many sports betting businesses, was promising. More books would open, and California was scheduled to vote as early as November on to whether they should allow tribal casinos and horse tracks to allow sports betting. The decision was to be made even despite the prospect of a recession looming over the state, and more states were in the process of allowing wagers on various games or sports.
NCAA Finally saw the Benefits of Sports Betting
The N.C.A.A that has traditionally opposed to sports betting later litigated to the supreme court had accepted that wagering was a part of American life. Also, over a dozen games in the men’s tournament were scheduled to be played, and sports booking businesses were gearing up for it.
The N.C.A.A’s own offices in Indianapolis are now around a mile away from a major sportsbook, had rescinded their policy of banning championship competitions in states where wagering on single games was allowed. Iowa legalized sports betting just last year, and Council Bluffs were poised to reap the huge benefits that were expected to come with March Madness despite the state not hosting a single game. One reason for this was that Omaha was scheduled to have six games. So, to place a legal bet on a college basketball game, Americans would just have to drive down across Missouri.
Online Wagering Businesses are Doing Better
Online gaming providers, which include the daily fantasy sports from businesses like DraftKings and FanDuel, are now leaning heavily on their daily fantasy businesses. No sports would have spelled disaster for them if it wasn’t for daily fantasy. However, some are getting creative by launching betting pools, usually around TV shows and politics. Some are even turning to much smaller and international events that are still being played like rugby, horse racing, and A-League Australian soccer.
Major sports leagues like NASCAR are turning to simulations or what is known as esports as a replacement for the real deal. So, here too, there could be betting opportunities. However, it is clear that the market has shrunk by over 97% in just these few months alone.
Conclusion
It is evident from all the data that the longer this lockdown goes, the more difficult it will become for sports betting services. Even if they all turn their attention to alternative routes of making money, it still can’t help them remain highly profitable as regular sports would. So, everyone in the leisure industry is hoping that things get back to normal ideally sooner than later.
