When the COVID-19 pandemic started, most online betting businesses saw a massive decline in both sports and live betting activity. Just like most other industries, online wagering has adapted to the new reality, changing the way it does business and how customers interact with it.
The majority of sports betting-related businesses have either closed down or changed their business models. Professional and collegiate sports have largely paused their seasons, eliminating the need for many sports books and betting exchanges. The global spread of the pandemic virtually wiped out any type of gathering, allowing for no outdoor sports activities and keeping people at home. This has led to the loss of a significant source of revenue for the sports betting industry.
The effects of the pandemic were also felt in the live betting market. The vast majority of the major betting exchanges went through a major transformation, changing from an on-site sports betting model to a fully online model. The COVID-19 pandemic was the final nail in the coffin of the “brick and mortar” betting shops, as everything changed in the wake of the pandemic.
Why Did Sports Bettors Switch to Online Betting?
It’s no secret that the sports betting industry saw a massive shift towards online betting after the COVID-19 pandemic. First and foremost, people want to keep their social distance. The online world is a virtual place, and with the ability to be anonymous, consumers could engage in online gambling without the fear of contracting the virus.
If someone wants to place a bet on their favorite sports team, they can do so from the comfort of their home. They don’t have to go to a sports book to do so, meaning fewer people in close proximity, and less opportunity for the spread of COVID-19. In fact, the U.S. Department of Health and Human Services recommends avoiding close contact with others, especially those who are elderly or have underlying health problems and stays at home as much as possible during this pandemic.
Additionally, many people don’t feel comfortable physically going into a betting shop, especially in this day and age. It is a shame to admit, but many sports betting shops haven’t changed much, and still operate in the same way they did years ago. Most of these places have closed down due to the pandemic, leaving only a few in operation (mostly in the UK). The majority of betting shops have adapted to the new way people want to interact with sports wagering, changing from an in-person model to an online model.
How Has the Industry Adapted to the New Reality?
The sports betting industry has changed a lot in the last year, adapting to the new reality of the pandemic. The first step was to close down many of its physical locations, pivoting to an online-only business. Many of the major bookmakers have gone through a major transformation, moving from a primarily land-based business model to one that is online-only.
Since the start of 2020, many bookmakers have closed down their physical locations, pivoting to an online-only business. One of the major reasons for this transformation is the COVID-19 pandemic. With most people keeping their distance from others, there isn’t a large pool of potential customers to reach. The industry shifted away from physical locations toward online platforms where people can bet from the comfort of their homes.
Online gambling companies completely altered their approach to achieve maximum revenue during this time. They adapted by increasing the number of sports they offer, changing the payout structures and creating new games to capture the attention of people (and ensure they return).
Additionally, the spread of the pandemic created a new niche for bookmakers and sports betting operators. Many traditional bookmakers focused on one or two sports, typically focusing on American sports like NBA and NFL. The COVID-19 pandemic changed all of that, with sports betting operators expanding to other sports like cricket and tennis, as well as creating niche products for the pandemic itself.
What Will the Future of Sports Betting Look Like?
While the sports betting industry largely went through a major transformation in the last year, it still has a long way to go. The majority of sports betting-related businesses have either closed down or are changing their business models, moving toward online betting to ensure they can continue to provide their products to customers. Most traditional sports betting shops are still in operation, but have closed down their physical locations, becoming fully online. This is largely due to the pandemic and its impact on daily life.
The advent of virtual reality (VR) has opened up a world of possibilities for the sports betting industry, creating a brand new way for people to engage with sports. If someone wants to place a bet on their favorite sports team, they can do so through VR, without leaving the comfort of their home. They don’t have to go to a physical betting shop to place a bet, meaning fewer people in close proximity, limiting the spread of COVID-19. Further adoption of virtual reality (VR) by sports betting operators and fans alike could transform the way we engage with our favorite sport.
Another potential area of growth for the sports betting industry is the world of blockchain technology. The technology backbone of the world’s largest cryptocurrency, Bitcoin, the blockchain allows for secure and efficient transfer of value between parties. With many companies within the industry looking to expand its reach, the blockchain could provide an innovative solution, increasing transparency while minimizing costs.
Since the start of the year, many blockchain companies have emerged, looking to create innovative solutions for the sports betting industry, allowing for secure and transparent transfer of value between parties. If someone wants to place a bet on their favorite team, they can use a blockchain solution, ensuring the funds are available and the bet is secured. The blockchain could provide the necessary infrastructure for a paperless society, eliminating the need for intermediaries like credit cards and ensuring the integrity of financial transactions. It’s an area of growth for the industry, and one that looks set to evolve as we know it.
To conclude, the sports betting industry shifted toward online betting after the COVID-19 pandemic. It took a significant hit with the closure of many physical locations, moving toward a fully online model. While many betting shops have closed down, remaining locations have changed their business models, adapting to the new reality and the new ways people want to engage with sports betting.