Gaming industry employees have played a vital role in helping communities cope with COVID-19 pandemic. Responsible reopening protocols were put in place and education about disease was conducted effectively.
Due to lockdowns imposed by land-based casinos, research on the effects of pandemic on gambling has been limited; ongoing studies will be necessary in order to ascertain its long-term effects.
The Impact of COVID-19 on Online Gambling
COVID-19 lockdowns have had an enormous impact on many aspects of people’s lives, including screen time. As people look for ways to alleviate boredom online gambling can often provide the perfect escape. Unfortunately, however, this could also pose issues for those struggling with addiction issues.
This study sought to assess the immediate impacts of COVID-19 on gambling behaviors in Ontario, Canada over six weeks since provincial emergency measures were put into effect. Survey participants were asked about their current gambling behaviors and motivations; mental health concerns; substance use; and any behavioural risk factors present in their lives.
Since early lockdown measures tend to affect sports gambling most heavily, this study examined changes to online behavior of sports gamblers specifically. Findings revealed no indication of substitution from sports gambling to other forms of gambling despite reduced gambling opportunities; as suggested by its authors, continued monitoring will be vital in understanding the lasting impact of COVID-19 pandemic.
The Impact of COVID-19 on Sports Betting
The COVID-19 pandemic has drastically altered the lives of millions around the globe (national lockdowns, social distancing, banned gatherings and telework). Gambling was among those most adversely impacted; many casinos, bingo halls, horseracing tracks, slot machines, video lottery terminals and betting shops had to close during its initial lockdown phase.
Market survey data indicates that gambling levels decreased during the lockdown, with frequency and expenditure both decreasing, while sign-up for new online accounts increasing. It should be remembered that these results rely heavily on retrospective recall, and may not accurately represent current behavior.
People stuck at home during lockdowns had to find alternative activities to pass the time; many turned to online gambling as a source of relief. Betting sites were heavily advertised across social media, websites and television, making it hard for those struggling with addiction resist temptation.
The Impact of COVID-19 on Casinos
The COVID-19 pandemic caused profound changes in the lives of a great deal of the global population (national lockdowns, social distancing, gathering bans and telework bans, among other measures). One such change was a decrease in gambling opportunities – although most individuals decreased overall gambling they participated in; there were those who shifted towards online casino activities instead.
Researchers of a recent study conducted an online cross-sectional survey, asking respondents the following open-ended question about how pandemic has impacted their gambling habits: “How has pandemic affected your gambling practices?”
Participants were asked to respond using an optional free-text field. Results from 724 surveys demonstrated that while many reported no change in gambling behaviour, a small percentage actually increased it due to boredom, experimentation with new games or card payments that make tracking expenditure more difficult. A few respondents were identified as at-risk gamblers or suffering from a gambling disorder – these participants demonstrated higher problem gambling severity and higher alcohol consumption rates.
The Impact of COVID-19 on the Stock Market
The COVID-19 pandemic devastated lives and destabilized economies around the world. It caused widespread panic among citizens, prompting them to take drastic measures – one being an abrupt decrease in gambling activities – in order to protect themselves.
As a result, land-based casinos, bingo halls, horseracing tracks, clubs with EGMs and betting shops were shut down during the initial phase of lockdown in March and April 2020; however, gambling industry quickly adjusted by shifting online advertisements instead of closing.
Numerous studies have investigated stock market reactions to the COVID-19 pandemic (e.g. Ashraf 2020a and b; Baker et al. 2020; Baig et al. 2020; Engelhardt et al. 2020), with most concluding that COVID-19 caused stock prices to fall dramatically while increasing price volatility dramatically. We examine these claims by measuring how COVID-19 affected price changes, volatility changes and return predictability using event windows.
