Is There Life after Pandemic? How Betting Industry Recovers after Lockdown

Is There Life after Pandemic? How Betting Industry Recovers after Lockdown

COVID-19 pandemic has had a serious impact on the global sports calendar 2020. The UEFA European Football Championship, summer Olympic Games in Japan, stages of Formula 1, and other sports events were cancelled. As a result, betting companies had to reduce betting lines, which resulted in a revenue drop.

Nevertheless, matches in popular disciplines have gradually resumed. And bookmakers have started to accept bets on sports events again.

How has betting industry survived the crisis? What marketing tools can be useful for operators to recover market position and develop further? Read about all of it in the article.

Situation in the betting industry in 2020

Situation in the betting industry in 2020

Cancellation and postponement of sports competitions led to a substantial decrease in revenue for bookmakers. The crisis simultaneously touched betting operators that provide services in different countries.

For instance, revenue of French online betting companies reduced by 56% and amounted to €94 million in the second quarter. Spanish operators also recorded a revenue reduction. Their revenue in the betting segment dropped by 21% to €65.2 million.

Currently, sports betting industry is gradually coming back to life. Operators resume activities and players that had to take a break from betting during quarantine and summer vacations are participating in betting more and more often.

However, despite sports events resumed, gambling and betting revenue is expected to decrease by 27% in the period from 2020 to 2021. Findings of the research conducted by Malta Gaming Authority show that revenue of bookmakers that hold a Maltese license may drop by 40% this year.

Role of esports in life of betting outlets during pandemic

Role of esports in life of betting outlets during pandemic

Belarusian football championship is the only sports event that was not cancelled in Europe by the end of March due to COVID-19. However, those competitions turned out to be insufficient to attract and retain bettors.

After the introduction of the lockdown, bookmakers had to adapt to changed conditions quickly. In the times of crisis, esports betting gained special popularity among bettors. For some time, esports became the only segment that allowed bookmakers to obtain revenue.

According to data of H2 Gambling Capital, the amount of esports bets increased by 60% and 100% in March and May of 2020 respectively. Furthermore, 2CV and ProdegeMR research agencies calculated that bookmakers received $14 billion from computer games tournaments this year.

Obviously, cancellation of traditional sports matches has allowed esports to leapfrog in development.

Legalization of betting in Ukraine

Legalization of betting in Ukraine

In summer of 2020, the law on legalization of gambling business was passed in Ukraine. The regulation allows online and land-based betting activities, among others. This means that betting outlets can now run business and advertise their services legally.

Taking into account the interest of international operators in the regulated market on the territory of Ukraine, UAH 5 billion in tax revenue and license fees is expected to go to the state budget.

Business recovery after pandemic: marketing tools for bookmakers

Business recovery after pandemic: marketing tools for bookmakers

Recovery of normal operation of betting outlets after the pandemic greatly depends on efficient marketing campaigns and tools that help to promote betting services in different markets. Some of them are listed below.

Improvement of reputation

Around 90% of people trust feedbacks on the Internet similarly to recommendations of their friends. In other words, almost all bettors read what other players write about a certain betting outlet before placing a bet there.

Therefore, it is a good idea to start work on betting business recovery from the analysis of reputation. Afterwards, you can proceed with correction of image and advancement of information background.

Collaboration with bloggers

Bloggers and celebrities can easily advertise your brand. It is important to take into account the blogger’s engagement and peculiarities of the audience. In such a way, you can achieve efficiency at a relatively low cost of advertising.

Work with podcasts

Listeners of thematic podcasts are mainly educated people with above average income. The host can dedicate some time to your brand during the broadcast. In such a way, you can make your betting outlet recognizable among solvent users.

Advertising on dating websites

As men are considered to be more active users of dating sites, advertising on such platforms can help you achieve good results in acquisition of new customers. Besides, this approach allows improving brand awareness.

Collaboration with esports representatives

A great future is forecasted for esports and a growing number of people are becoming viewers of online streamings. Correspondingly, the earlier a betting outlet takes its place in the actively developing niche, the better for the company.

To promote services and popularize their brand, bookmakers can use the following advertising approaches: sponsorship of esports tournaments, gamification on social media, online integration, collaborating with famous esports players, etc.

More information about efficient ways of traffic acquisition for betting outlets will be presented at Kyiv iGaming Affiliate Conference 2020. The event will take place on November 4.

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