Will traditional casinos ever recover?
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Very few industries have been left undisrupted by the Coronavirus pandemic like traditional casinos. In a society that has become increasingly individualistic and digital orientated, we can even argue that Coronavirus has been an accelerator – we were already heading towards remote work, online shopping, and being stuck inside playing video games, so lockdown measures just got us there faster.
Of course, it was a caricature, but the effects it has had on industries such as casinos is tangible and permanent. Live casinos were already growing in popularity, but it seems they’re now taking over.
A recent study found that, unsurprisingly, lockdowns had caused a reduction in the frequency and expenditure of gambling. 2019 and 2020 were years which contained some severe and strict lockdowns in most countries around the world. Casinos were the first on the list to close, being less important to society than retail outlets, and being an area which could spread COVID-19 quite easily.
Gambling revenue in the US reduced by 31% in 2020. Yet, despite the inability to generate revenue, many casinos were still paying the high rents of their large footprint buildings. Casinos had lost 27% of operating days during 2020 because of the lockdowns, which correlates strongly with the loss in revenues.
Whilst some traditional casinos have online platforms for diversified income, many do not. In fact, quite oppositely, many casinos are hotels (or partnered with) which also saw a drastic drop in income. Revenue for table games was down almost 40%, whilst the more socially distanced slot games reported a 33% drop in revenue.
Getting casino in the UK, which has 29 sites, considered closing three of its casinos because of lockdowns. The same happened in the US, with various casinos announcing a permanent closure. Whilst it’s easy to claim that the worst of lockdowns are over and casinos should be out in the clear now, it couldn’t be further from the truth – with new variants and ongoing health care issues.
Not only is the UK mulling over a potential lockdown in January, but some people have lost the habit of seeing the casino as a viable night out. Of course, it was a time for self-reflection for some, but many people didn’t harbour feelings of wanting to decrease their gambling. Instead, they directed towards the internet.
It’s difficult to grasp why traditional casinos have a bleak few years ahead without understand the role online casinos have to play. In the past decade, there has been an explosion in the amount of online casinos websites – and the games they host – that has captured the imagination of the public.
Gamified games, leaderboards, slot games with stories and themed characters, and genuine game development innovation had all laid the foundation. The timing of the pandemic couldn’t have come at a better time for online casinos, with the foundation of their value already having been established for a few years, and with many people looking for ways to spend their disposable income now that pubs, cinema’s and gyms were closed.
Plus, it’s become a space of privacy. Playing online casinos can be done in private, unlike traditional casinos, which force you to socialize. Many people use Bitcoin casinos to spend their Bitcoin, whilst others play Bingo and virtual sports betting.
Many people will have established a hobby of playing online games, and will be reluctant to head back to the land-based casino. Their favourite games will more than likely not be present in traditional casinos, which only tend to house table games, poker, and simple, fairly homogenous slot machines.
This begs the question of why did people go to the casino before the pandemic? It’s different for different people. Some people enjoy the atmosphere and lavishness of a casino night out, whilst others genuinely enjoy playing poker against other individuals in a face-to-face room.
For these people, online casinos cannot fully replace them. The next James Bond film cannot be shot in a bedroom whilst playing mobile casino games – nor can one feel like James Bond whilst playing medieval slots in bed. Through VR headsets and socially messaging features, the online world is certainly closing the gap in some aspects, making it more social and atmospheric, but it’s unlikely to ever fully replace a traditional casino.
However, for many, they just enjoy games. Be it the gambling or the game itself, video games or online bingo, the dopamine-laden process of playing casino games can be not only replicated online, but concentrated in a more accessible, purer form. With no fluff, waiting around, or cashing in chips, users can play their favourite games wherever they like, whenever they like, and experience games that they have never seen or played before. Whilst Vegas casinos and similar will return to their strongest once travel returns to normal, many urban area casinos may continue to struggle.
