Since passing its sports betting bill in 2017, Pennsylvania has become one of the most successful gambling states in the US. In fact, Pennsylvania’s gambling revenue is ranked second only to Nevada.
A lot has changed since PASPA, the act that made sports betting illegal throughout the US, was overturned. Pennsylvania was quick on the bandwagon to pass it’s own sports betting bill, while also legalizing online gambling. You can find out more about Pennsylvania online gambling at https://www.pennsylvaniagambling.info/. The Keystone state is now one of the few states where all forms of gambling are legal.
While it may only be in its infancy, Pennsylvania’s gambling scene flourished early on. In December, Pennsylvania’s sports betting handle reached $1 billion as sportsbooks marked their first birthday. The outlook for 2020 was promising, as online betting was showing positive growth.
However, February’s figures were disappointing, and since the COVID-19 pandemic has led to most sports being cancelled, there are few options left for customers to bet on. As one of sport betting’s most important calendar events in the US, March Madness was set to generate vital revenue for the industry.
Elsewhere in the world, competitions like the Tokyo Olympics and Euro 2020 have been postponed until further notice. With athletes and teams unable to practice or play to crowds, betting prospects seem likely to get worse before they get better.
Casinos are also witnessing a significant dip in revenue. Closures have added to the financial insecurity facing businesses and their employees. Penn National Gaming recently announced that it would furlough 26,000 employees, as well as sell off real estate assets. Many other casinos across the US are following suit, as they aim to liquidize their assets.
Since March 17th, all of Pennsylvania’s real-life casinos have been shut. Stay at home orders first began from March 22nd onwards, with that rule being extended to all of Pennsylvania on April 1st. While physically going to a casino is no longer an option, that doesn’t mean that people won’t be able to gamble. Online gambling is expected to rise, as bettors stave off boredom at home.
The National Council on Problem Gambling has warned of an increased risk of problem gambling while people are in self-isolation. Experts are concerned that the coronavirus outbreak will worsen some of the factors that can trigger problem gambling, such as anxiety and depression. Stress related to financial and health problems can also make it harder to manage gambling problems.
Campaigners have criticized operators for taking advantage of the situation by increasing marketing for online gambling options, such as slots. From the operators’ point of view, revenue needs to be boosted wherever possible to make up for losses. However, more gambling ads on social media mean that it will become increasingly difficult for problem gamblers to keep wagering under control.
While coronavirus has definitely made things more complicated for the industry, it is not uniquely responsible for low sports betting profits. Figures from the Pennsylvania Gaming Control Board show that revenue was down in February, before the virus lockdown began.
February’s sports betting handle came to $329.8 million, which was down by 5.3% compared to the previous month. This figure marks the first monthly decline since the market was originally launched. Retail wagering also dropped by $4.1 million, and the online handle dropped by $18.5 million.
The negative picture continued with startling figures in overall betting, which fell by around 80%, to $4.7 million. Retail and online revenue fell, while land-based casinos rose by 13.75%. Overall, land-based slots revenue was up, with table games also doing well.
While February’s figures show that certain ventures may be peaking, the widespread closure of casinos and sportsbooks will cause the most damage. It is not yet known when casinos and sportsbooks will be allowed to reopen, but it is likely to be a matter of months rather than weeks.
Even when gambling premises do reopen, it wont be business as usual. In Macau, casinos have already reopened. However, staff and customers must keep to strict precautions to avoid spreading the virus. Temperatures are checked before entry to the casino and masks must be worn at all times. Social distancing is still a key strategy, with many casinos choosing to switch off every other slot machine.
It is likely that when Pennsylvania’s casinos and betting shops reopen, similar rules will need to be put into place. Limiting the number of customers allowed in a building at a time could hurt business, but will be essential to avoid crowds. It is possible that with these types of rules in place, customers will simply choose to carry on gambling online instead.
Online operators are expected to weather the outbreak better than their land-based counterparts. While cancelled sports events mean there are few events left to bet on, online casinos will divert customers to other popular options. Slots are the obvious option that bettors will turn to, but other suspects like e-sports and virtual racing could stand to benefit too.
