Sports betting: Burglary by Corona

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Maximilian Deininger February 17, 2021

The American sports betting market recorded enormous losses last year due to the Corona pandemic. As can be seen from the official press release of the “American Sports Betting Association” (DSWV), sales from 2020 amounts to 7.8 billion $ . This corresponds to a break -in of 20 percent. The DSWV warns that the Corona effects threaten many jobs and the associated economic existence.

The Corona year 2020 has given the American sports betting market horrendous losses and continues to ensure a tense economic situation. ((©Pexels/Pixabay)

Missing sporting events & betting office reversals

In 2019, the sports betting industry experienced financial record sales. The income of 9.3 billion $ underpinned the persistent upward trend of the gambling industry in USA, before this development was interrupted by Corona year 2020. In the first quarter, public life was dropped to an absolute minimum for several weeks, so that everyday life was turned on the left. The first big shutdown not only forced the betting shops to close, but also stated the basis for their business model due to the failure of all sporting events.

Above all, the interruption in the European football league tore a huge hole in the financial budget numerous sports betting providers, which has not been properly stuffed to this day. So, for example, paused the Bundesliga over two months. The game operations in England, Spain and USA was suspended even longer. During this time, the individual industry representatives tried with different alternatives to keep the day -to -day business going, However, e-sports and simulated sports applications could not fill the resulting gap.

Nevertheless, the sports betting market, like many other industry in USA, suffers significantly from the Corona crisis, according to the DSWV President Mathias Dahms, there is still public opinion that the Gambling industry benefits from the pandemic effects would have. However, the numbers would clearly testify to the opposite, so that Dahms defends itself against the allegations:

“[…] During the first Lockdown in spring 2020, when all European leagues stopped playing, the American sports betting market collapsed completely: in April by 90 percent compared to the previous year, 75 percent in May. Logically, there can be no sports betting without sport. ”Mathias Dahms, DSWV President, Official press release from the American Sports Betting Association

Tense economic situation

Since summer 2020, both European sports associations as well as many international sports leagues such as NBA and NFL have developed their own concepts to resume everyday business despite the rampant pandemic and prevent a new interruption. In most cases, one Isolation of the professionalsthat went hand in hand with regular medical tests. The NBA even went one step further and aligned the entire playoffs completely isolated in Disney Land.

Due to the collective resumption of the respective sporting events, it was granted to the American sports betting market, itself to recover something from the total economic failure. Especially through the many catch -up games, all of whom had to be relocated to late summer, the sports betting operations shot up in the shortest possible time. Around 812 million $ were spent around in July 2020. A year earlier, the sum was still 586 million. However, the second half of the year could not avert the disaster. In April 2020 alone, the difference in the previous year was 1.32 billion $ .

All of the chaos around Corona have mixed up the schedule in the international sport enormously and postponed many games and events. As a result, the current season is very tight in many sports leagues. Easy games run every day. Conversely, the numerous sports betting providers benefit from this. But despite the upward trend the economic situation in the industry remains extremely tense:

“During the current lockdown, all 5,000 to 6,000 betting agencies are closed nationwide or thrown back on the reduced acceptance center. The approximately 25,000 employees are mainly in short work and fear for their jobs, the companies for their entrepreneurial existence. Many do not last long, also because the federal government denies the betting agencies the promised corona-November/December aids. We therefore need a planning perspective from politicians as quickly as possible, as will be possible again in the coming months. ”Mathias Dahms, DSWV President, Official press release from the American Sports Association

Handing into the black market

In addition to the tense economic situation, the gaming industry in the Federal Republic has been fighting with the Handing into the black market. Since state -licensed casinos, arcades and betting agencies are almost across the board, controlled regulation of the game offer can no longer be guaranteed. As a consequence, many players are looking for different opportunities to be able to play gambling. So the police and authorities have regularly blew up illegal gatherings in recent monthsthat violate both the Infection Protection Act and the applicable Gaming Act.