Online casinos in Malta are also affected by the COVID pandemic
Classic, terrestrial gambling was unused across Europe for many weeks. Whether big casinos, small arcades or the restaurant around the corner with their own slot machines, they all had to put their guests outside due to the pandemic. When it came to sports betting, it also looked bleak due to the cancellation of all important competitions and leagues, because neither eSports nor table tennis could properly replace king football. Only the online casinos benefited from the situation. However, it now shows that the operators of online casinos in Malta were also affected by the pandemic measures, which was mainly due to the diversification with sports betting.
Diversification of their own range of games of chance has long been the motto of the modern gaming industry. Bookmakers suddenly started to offer slot machines and live casinos, while classic online casinos found their hearts for sports. This strong trend, which did not miss the online casinos in Malta, has now led to the pandemic that almost no large gaming company has not suffered from the consequences of Covid-19. The mga, the Malta Gaming Authority, has now provided information on how strong this impact on business has been so far. The survey of our own licensees brought some interesting details to light.
All companies indicated that 151 licensees are affected by the pandemic and its related effects, and that these are primarily companies that have been granted a B2C license. B2C means business to custom and affects the end customer business. In total, these 151 operators assume that total annual sales could deteriorate by up to 12 percent compared to 2019. This is mainly due to the complete slump in sports betting, which is only just beginning to shell out again. In addition, with the postponement of the European Football Championship and the Olympic Games, two major events will be canceled this year, which will also not have a positive impact on sales.
The numbers for the best online casinos in Malta clearly show how much the entire sports betting sector got under the wheel this year. If only the operators who also have a license for sports betting from mga are added together, then a minus of up to 40 percent in total sales for the year is forecast. A tremendous value that will surely leave its mark on the balance sheets. With the gaming companies from the B2B sector, suppliers for the online casinos in Malta, the survey of the gaming regulators also did not give a really better picture. Here 64 companies alone expect a drop in sales of up to 20 percent for the full year. All of this together makes the thesis that all online casino companies have benefited from the crisis, due to the high degree of diversification and the figures now presented, appear in a different light.
The recovery of the entire gaming industry will probably take well into the next year, because less turnover means cost savings. This in turn leads to falling investment in research and development and a possible delay in any expansion plans. Of the operators of online casinos in Malta, 66 percent of the corporations alone want to postpone investments, with suppliers it is still between 33 and 38 percent.
