Online Casinos are the Only Hope for Denmark’s Beleaguered Gambling Sector

The Corona Virus pandemic hit the gambling industry hard in 2020, as land-based casinos, arcades, and betting venues across Europe and beyond fell fowl to heavy restrictions and lockdowns. Many countries are still reeling from the fallout, as doors in some regions remained shut deep into the first quarter of this year.

Denmark released its gambling report at the end of the first quarter of 2021 and the statistics tell a sorrowful tale, as most segments of the gambling industry were met with significant drops in gross gambling revenue (GGR). The entire industry witnessed a 15.3% slide in the first quarter of 2021 when compared with the same period in 2020.

The main reason for the decrease in revenues has been the sustained closure of gambling venues. Land-based gambling machines and brick-and-mortar casino gambling was met with a 99.9% and 100% loss, respectively. This is because the country kept the walk-in gambling business shut down until April 2021. The online gambling industry saw the only growth in Q1, generating 54.94% of all earnings in the industry – an amount of 717 million DKK.

 The Industry’s Hero

As people were ushered into their homes and encouraged to stay there, it seems that gamblers made full use of the services offered to them at online casinos. Stats show that from the start of 2020 until now, online gaming holds a 43.59% slice of the income pie in the industry.

Of that slice, 57.53% belongs to mobile gamers and 42.47% to PC players. These markers represent an annual revenue haul of over 3.1 billion DKK from 1 January 2020 to 31 March 2021.

The online gambling space was the only segment of the market to see a gain in income when compared with the first quarter of last year. The 28.65% difference is a significant gain which shows that the gaming climate in the country may be set to change. Right now, online gambling seems like the only hope for the Danish gaming market.

The main money generators are gaming machines, like slots (74.52% share), followed by roulette games (9.58%), and then blackjack (6.7%). These stats may provide Danish companies with helpful indicators of where the industry should concentrate right now to bolster its income.

 Is the Pandemic Here to Stay?

Land-based casinos may be hopeful for a complete turnaround once the COVID Pandemic is over.

The problem is that the threat will still be here for a while. The vaccine is available, and the world is confident it will do its job in de-escalating the disease, but we must ask ourselves truthfully whether things will ever go back to the way they once were.

The lockdown, and the social distancing aspect especially, shocked the world and brought about a realisation that diseases like this are out there and can hugely affect the economy and our livelihoods.

As such, the online world has become a ‘friend’ to many and a safe place for those looking for entertainment, trade, and business. With all the forced advancements in e-commerce and digital trade over the past year, some people might find it difficult to transition back to the old ways.

 Round-Up

It’s very possible that land-based casinos will not be as popular as they once were, which leaves the future of Danish gambling in the hands of the online gambling sector. Fortunately, the digital gaming space has risen to the occasion and has become a far safer place to preside than it was before.