Could Coronavirus ultimately help online gambling & other online businesses?

The world's most ardent optimists have a knack of finding the positive even in the midst of very negative circumstances.

Any of them who work in the gambling industry may very well see a silver lining in the ongoing coronavirus crisis. What is that silver lining? Coronavirus and the fear surrounding it is providing a boost the profile of online businesses.

Playing down the seriousness of coronavirus is not the point here. The world understands what it is dealing with and is responding with all sobriety and resolve. But if you look back through history, it is often crises of this magnitude that usher in significant changes to the way society does things. If the current situation continues unabated through the spring and summer, Asia's gambling industry could be absolutely devastated. It might end up surviving only because of what online gambling brings to the table.

Heavy losses in Macau

One of the most active gambling environments in all of Asia is Macau. Unfortunately, the resort region is along China's southern coast. Equally unfortunate is that China is the epicentre of the COVID-19 virus that has dominated the headlines in recent weeks. With the nation all but shut down for the better part of a month, Macau is hurting.

Casinos in the area were shut down for at least two weeks beginning in early February. Some remain shuttered beyond the government-imposed period as they worked on sanitation and disinfection. The net result has been nothing short of disastrous. According to Macau's Gaming Inspection and Coordination Bureau, February gambling revenues were down nearly 88% from the same period in 2019.

Macau casinos brought in just over US $386 million for the month. The drop-off is significant in that it marks the largest single monthly loss ever recorded for the Macau industry. Needless to say that February losses are likely to be felt all year long.

The good news is that almost all of the casinos in Macau have reopened. As of March 1, only two remain shuttered. The rest have reopened after agreeing to take certain precautions, including requiring both guests and workers to wear surgical masks and leaving empty chairs between gamblers.

Developing problems in South Korea

Despite China being the epicentre for the coronavirus crisis, other nations are beginning to feel the squeeze as well. South Korea's government declared a public health crisis in late February, prompting Kangwon Land to announce the shutdown of its casino operations beginning on February 23.

The plan was to reopen on February 26 based on government recommendations. However, casino officials announced an extension of the closure until February 29 in light of the rising number of coronavirus cases emerging in South Korea.

What does this mean for Kangwon Land financially with losses in the millions of US dollars daily? No one know and the problem is that the losses will continue mounting if the casino remains shuttered for the foreseeable future.

There are plenty of other stories about Asian gambling losses that could be included in this post. However, continuing to detail the misery is unnecessary as the point has been well made. It all leads to the question of whether or not there is an opening here for online operators to pick up the slack.

Gambling without leaving home

Online gambling is by no means perfect. It has its own issues to contend with. But in the midst of the coronavirus outbreak, its biggest advantage is that it allows people to gamble on their favourite slots and table games without having to leave home. Why this is beneficial to the broader gambling industry should be obvious.

In the midst of any potential pandemic, government officials are going to recommend quarantining those who are already ill. Situations deemed serious enough often lead to the shutdown of entire cities and geographic regions - as we have seen in China in recent months. Those not infected tend to protect themselves by avoiding going out in public.

Travel restrictions make matters worse by forcing people to cancel their plans. Even in locations where no travel restrictions exist, fearful people decide to cancel or delay their holidays. All of this adds up to a depressed business climate that affects gambling as much as any other industry.

Online gambling is largely unaffected for obvious reasons. So even as land-based casinos are suffering losses in the millions of dollars every day, online operators should do just fine. In fact, it would be no surprise to see reported revenues at the end of this quarter on the rise.

Discovering the benefits of online gambling

Forward thinking online operators would do well to take advantage of the open door being offered them. Right now is the perfect time to reach out to new customers in an attempt to draw them into the online environment. Not being able to visit land-based casinos is an open invitation to discover the benefits of gambling online.

There is certainly something to be said about live gambling at a land-based casino. But online gambling has its own strong points as well. For example, online gamblers are not restricted to casino schedules. That is because online properties are open 24/7. Gamblers can play their favourite games on their own schedules.

Gamblers who are not fond of large crowds and lots of noise find the online environment a lot more conducive to good entertainment. Hand-in-hand with that is the comfort of doing what you do at home. Sitting in a comfortable chair and playing your favourite slots can be a lot more entertaining and relaxing than playing at a noisy and crowded casino.

Of course, don't forget the mobility concept either. Online casinos go wherever you go. All it takes to play is a mobile device and an internet connection. So even after the whole coronavirus issue passes away into distant memory, online gamblers will still have the opportunity to play their favourite games at home, on the way to work, and anywhere else for that matter.

A wake-up call for governments

The current situation is not just an open door for online gambling operators. It is also wake-up call for governments worldwide. How much tax revenue are China, South Korea, and other Asian nations losing because of gambling losses? How much are their economies going to suffer over the next 12 to 18 months as a result of casinos being closed for so long?

Depressed economic activity is not good for anyone. However, gambling revenue losses do not have to be so steep. If governments were a bit more friendly toward online gambling in general, they would be better positioned for situations like the one they are now facing.

Governments that allow land-based casinos but not online gambling seem to be attempting to play both sides of the ball. On the one hand, they welcome the tax revenues generated by land-based operations. They extol the virtues of gambling as a means of helping fund government projects.

On the other hand, they actively work against online gambling as though it is inherently bad simply because it is online. They lose out on even more tax revenues based on some misguided belief that gambling online is somehow detrimental to one's mental health. It doesn't make sense, and yet here we are.

We could extend this particular critique to include Bitcoin gambling. If there is one thing that drives government officials already opposed to online gambling crazy, it is the prospect of gamblers using Bitcoin or other cryptocurrencies to make their deposits.

Making up for lost profits

It is pretty evident that the online gambling industry is not going to be terribly impacted by shuttered land-based casinos. Most online industries are not going to suffer significant losses as a result of coronavirus. In fact, many will do better simply due to the fact that people do not want to leave their homes.

Game developers like Microgaming will continue collecting revenues from those licensees offering their games online. Online operators themselves will continue to attract gamblers looking to play their favourite slot and table games from the privacy of their own homes. Those that have both land-based and online operations should find that the latter makes up, at least to some degree, some of the losses experienced by the former.

So who are the real losers here? Land-based operators and government taxing authorities. Both will continue to suffer financially as long as casinos remain shuttered and gamblers stay home. Losses could easily extend into the billions when all is said and done. Will it prompt decision-makers to be more open-minded about online gambling?

In the meantime, let us hope that public health officials get a handle on coronavirus sooner rather than later. Despite the situation being an open door to online gambling operators, we would all agree that it is best to bring an end to the pandemic as quickly as possible.