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How iGaming Stocks are Impacted by the Coronavirus
By Jeff Osienya Feb 27, 2020 IndustryWhile business in Macau casinos is tumbling due to the Coronavirus, online gambling establishments are filling the void left as a result of restricted movement.Early this month, the World Health Organization declared the Coronavirus epidemic a public health emergency of international concern. The COVID-19 outbreak has crushed the general economy of the People’s Republic of China, hitting even harder in Macau. Even though we are now past the two-week closure period of Macau casinos, their occupancy rate stands at a meagre 11.8% down from the usual 90%+.
However, not all businesses are taking a beating after the outbreak of Coronavirus. In fact, things seem to be getting more lucrative for the online gaming industry. With most public gambling places shut down and freedom of movement also limited in the lockdown areas, residents of the regions have resorted to taking part in online gaming.
Moreover, even with some Macau casinos back in operation, most players are still afraid of movement for fear of getting infected. And who wants to go gambling in a casino where all attendants are wearing masks anyway? That’s precisely the case in the Macau casinos that are back to business. Why not go gambling online instead?
iGaming Business Shoots Up
Looking at the numbers, the rate of online gambling activities in China is standing at 90% compared to the same Lunar New Year holiday period in 2019. However, since online gambling is against the law in China, and there’s hardly any textbook regulation in most of Asia, European companies are the ones that are raking in the rewards of the changing tides.
iGaming stocks are gaining significantly from the outbreak because online casinos are currently reporting an exponential surge in new members. The number of deposits on the online platforms in Manila, for instance, is getting bigger and online betting activity across the board is generally increasing. This is particularly because the Philippines is the only Asian market that has legalized and regulated online gambling.
On the same note, investors who ran away from China due to the fear of the virus’ impact on the gambling business have been attracted to the more stable iGaming stocks in various parts of Europe. The likes of Betsson AB are trading at 56.50 with a market value of 7.675 B, reporting a positive change from 0.10% to 0.18%.
Ladbrokes is another iGaming stock that has recorded an increase in the market value on the London Stock Exchange, with market experts referring to it as a conservative investment. Other notable iGaming stocks that are on the same trend include William Hill and NetEnt in the Stockholm Stock Exchange, as well as the Stars Group in the Toronto Stock Exchange, and LeoVegas in the Nasdaq Stock Exchange.
Could this be a Wake-up Call for Asia and the USA at Large?
Given these movements, proponents of the industry argue that Asian and American governments should seriously heed to the call on embracing online gambling in its entirety. While Europe and the Philippines are making a killing in the iGaming market, they are losing a lot of business and tax revenue, especially with the current Coronavirus pandemic.
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