Online casino operators in Europe say their gains in iGaming are triggered by additional people trying it and not because of traditional players stuck at home spending more.
Panelists who spoke Tuesday on the second day of the SBC Digital Summit said they expect those gains to dissipate once the pandemic shutdowns are in the rear-view mirror. People will return to their previous habits of frequenting brick-and-mortar casinos and betting on sport events, they said.
Online gaming revenues have been up across the globe, including New Jersey, Pennsylvania, and Delaware, the three states that offer it in the U.S. Revenue gains during the shutdowns have attracted scrutiny and regulation in Europe, since some people view online gaming as addictive and some of the panelists expect the same scrutiny in the U.S.
“We have seen an increase in business, but don’t see players spending more,” said Alexander Stevendahl, CEO of Videoslots. “It’s still the same level and some are actually spending less. What we have is more customers.”
Stevendahl said he was surprised to see Sweden propose deposit limits for online gaming because they haven’t seen an increase in players betting more.
Itai Zak, CEO of GoWild Gaming, said they’re seeing more demand from non-traditional casino players who otherwise play poker and bet on sports and are looking for other opportunities. “We understand this is something temporary and a side effect (of COVID-19) and don’t count on this pattern to be sustained.”
Ariel Reem, CEO of the Genesis Group, said he was surprised data tracking customer behavior didn’t show players were spending more. His company has seen more sports bettors switching to casino play.
“With people staying at home, you would think they’d get bored and play more,” Reem said. “But it was not the case. And we’re not talking about people who never tried a casino before.”
Players are using responsible gaming tools and as a company, Reem said, they’ve enhanced tracking thresholds to keep people from harm.
Alex Tomic, CEO of Alea, said they also see gains from new players coming in and don’t expect this traction in iGaming to continue, especially if the economy suffers even longer. More people, perhaps, will stay online for the next year, but “casinos have been around for a thousand years and aren’t going away” because of COVID-19, he said.
“What we’ve seen in terms of an increase is probably not going to be sustainable (for long),” Tomic said. “Let’s face it. If this crisis continues, people will cut modest spending that’s not necessary. If people believe at some point their income is going to decrease, they will stop gambling, or if they believe their future isn’t certain. What we see now is nice, but I don’t count on it for the future.”
Zak said regulated operators like Alea understand that players are more vulnerable during the lockdown. They’re identifying changes in player behavior and will place restrictions on accounts if customers don’t respond. Marketing isn’t focused on (encouraging players to deposit) more funds.
“Operators want to make sure we’re protecting the business for the long term instead of just counting on the short term,” Zak said. “We want them to have a good experience and come back to us.”
Genesis Group’s Ariel Reem said they’ve enhanced thresholds for flagging players for problem gambling and have held back on marketing, because they didn’t think it was the right time.
“We’ve seen some countries impose bans and restrictions in terms of responsible gaming regulations, but we couldn’t see the need for that,” Reem said. “The numbers do not support it.”
Placing too many restrictions would push players to the unregulated market, panelists warned.
