In COVID-19 hit Europe, iGaming is one of the few industries still going strong, with companies in hubs like Spain and Malta remaining optimistic.

iGaming powers ahead in Spain

With lockdowns leaving players with much more time on their hands, and companies easily able to switch to work-from-home operations, the iGaming industry, like esports, is still growing despite the crisis.

Cadiz and Ibiza, along with the British Overseas Territory of Gibraltar, are already home to many iGaming companies and employees, but in the now certain post-coronavirus economic crisis, the sector will likely become even more important to the local and national economy.

And, with the country set to see record unemployment among a large and tech-savvy young workforce, plus a property crash, businesses may well see costs fall considerably in the coming months and years.

Cadiz, Spain

Malta more dependent than ever on iGaming

Leaving the Iberian Peninsula, and heading east across the sea, another Mediterranean economy is also set to become much more dependent on iGaming due to COVID-19.

Malta, widely known as the iGaming hub of Europe has seen the other main plank of its economy, the tourist sector, utterly destroyed as flights and international travel have been halted. Even if lockdowns are eased in some countries over the coming weeks, the threat of a second wave of COVID-19 is likely to see mass travel restricted for many months or even years.

Of course, for Malta this also presents additional challenges. Already, before the COVID-19 crisis, iGaming employers were finding it increasingly difficult to recruit and retain the needed talent, due to the limited local talent availability and rising living costs.

With international travel likely to remain very difficult for a long time, the threat of further outbreaks, and the Maltese government’s unwise anti-immigrant stance during the crisis, any expansion for Malta-based companies dependent on recruiting foreigners may prove difficult.

Malta

Could regulators spoil the party?

Though online casino, virtual sports, and esports betting have been doing very well during the crisis so far, in some countries regulators could spoil the party.

As we reported last week, in Sweden-licensed operators have been threated with “extraordinary measures” unless the reduce the amount of online gambling, while Belgium has introduced strict weekly staking limits, and regulators in the UK, Malta, and the Netherlands have warned operators they are being watched closely.

If the crisis drags on, there is every chance we could see more jurisdictions implement limits, or even total bans – which would clearly spell disaster for one of the few industries still thriving.

Everything depends on the length of the crisis…

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