Pandemic, European War & Recession Is the Gambling Market Affected? – Study Breaks

In recent years, humanity has seen its fair share of major catastrophes, the latest of which have made a dent in our wallets due to inflation, recession and rising prices. Even though most industries are affected by this, the ramifications are by no means shared equally across all of them.

Will the gambling market be able to get through this unscathed? Lets see whats brewing behind the scenes.

Inflation and the rising gas prices should, to some degree, affect every land-based business; at least, its reasonable to expect such a scenario. However, according to Bill Hornbuckle, CEO at MGM Resorts, this hasnt happened yet. Not only that; if we take a look at the reports that are coming from the American Gaming Association, Mays revenue for this industry is actually up 7.9% compared to the same month last year. On top of that, the three months leading up to it have been record-breaking, effectively surpassing the $5 billion revenue mark each.

On the other hand, casino stocks have plummeted considerably, striking fear in the hearts of investors and traders. Looking at some of the big names, Caesars Entertainment stock went down by 50% this quarter, Ballys by 40%, MGM Resorts by 35%. Given the commercial success of casinos in this period, this comes as a surprise. In fact, most casino executives have yet to notice any signs of things slowing down.

The discrepancy between peoples expectations and the market reality is a good example of an educated guess going wrong. As most stock trading is done based on speculation, sometimes people succumb to the fear of a potential market crash, so they start panic-selling their shares. This is what seems to be going on in this example as well even though the peoples decision to start mass-selling their casino stocks seemed completely rational at the time, the market voted otherwise and this is the ensuing situation. Given how most of the world is lifting anti-COVID measures, one can expect a likely travel rebound in 2023.

Although most casinos are in high spirits, not all of them share the narrative. Derek Stevens, who owns three casino properties in Las Vegas, is noticing an accelerated trend of casino ATM cash withdrawals, with every weekend reportedly being worse than the other. This has resulted in a reduction of business volume for slots, table games and bars. Las Vegas hotel bookings, on the other hand, are going as strong as ever. Apparently, the spending is still there, but slightly redistributed from what tends to be the norm.

Ever since the first COVID lockdowns, the online gambling market has been soaring, and since playing at an online casino requires you to spend zero money on fuel, this is unlikely to have an effect on the industry. The only thing that could potentially shake it up is a reduction in peoples purchasing power, meaning they will need to rethink their spending habits.

Other than that, the online gambling market is positioned quite well, with many technological additions being implemented almost on a daily basis, ranging from chatbots and all the way to personalization and live-streamed games. This is further supported by the fact that accessing the internet and smart devices is now more affordable than ever. In the states where gambling is legal, things are going very well in the online space. In fact, the online gambling market is expected to hit $1 trillion this year. To get a glimpse at how well the online gambling market is doing in the UK, check out the source provided below.

Source: https://casinomir.com/casinos-not-on-gamstop/

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Pandemic, European War & Recession Is the Gambling Market Affected? - Study Breaks