Can the Spanish sports betting sector survive another pandemic?
More than four years ago, the emergence of SARS-CoV-2, the virus that causes COVID-19, took the world by surprise and profoundly changed the lives of millions of people. From the first cases discovered at the Huanan wholesale fish market in Wuhan, China, to its rapid spread across continents, the virus and its subsequent variants have posed an unprecedented public health challenge. This has forced governments to take extreme urgent measures to prevent its transmission.
The COVID-19 pandemic has caused biggest global economic crisis in more than a century. Measures taken to contain the spread of the virus, such as quarantines and movement restrictions, have had a significant impact on most sectors. Business closures, millions of jobs destroyed, and millions of dollars in losses were among the most visible impacts.
One of the hardest hit sectors was sports betting. The cancellation of domestic leagues and major international events such as the Tokyo Olympics and European Football Championships has sharply reduced betting opportunities. As a result, bookmakers have experienced a significant drop in revenue, reflecting the extent of the impact of the crisis. According to the Directorate General of Gambling Regulation (DGOJ), in the second quarter of 2020. in the bookmaker segment a decrease of -38.38% was recorded compared to the previous quarter.
Despite initial difficulties, the Spanish sports betting sector was able to quickly adapt to the ever-changing situation. Given the suspension of traditional sports, Operators have diversified their offer by focusing on alternatives such as electronic sports (esports) and casino games.. In addition, they have also promoted greater accessibility by reducing minimum deposits, which are the funds that users must transfer into their accounts on virtual platforms in order to start betting on their favorite sports.
Although minimum amounts varied across platforms, according to specialist websites, players could find a bookmaker with a minimum deposit of €1, further democratizing access to players of all economic levels. Operators have also expanded their payment methods, including options such as e-wallets (Neteller and Skrill), which offer users more convenience and flexibility.
The sector is better prepared to face the next pandemic
Recent history has shown us that Outbreaks of pathogens that can cause serious illness are becoming more common.. So far in the 21st century, we have witnessed epidemics of SARS-CoV-1, MERS, Zika and many other new and re-emerging viral infections. While it is impossible to predict with certainty when and where the next pandemic will occur, what is certain is that at some point a pathogen will jump from animals to humans and cause an outbreak.
In a hypothetical scenario of a new pandemic and a possible sports blockade similar to the situation with COVID-19, the Spanish sports betting sector will again face a critical situation that will test its resilience. However, Lessons learned from a previous health emergency provide operators with the necessary tools and strategies to mitigate its impact..
One of the main lessons the industry learned from the previous crisis is the need to diversify. As we mentioned earlier, during the COVID-19 pandemic, many operators have opted for esports and casino games. These types of terms could be a lifeline for online bookmakers if domestic leagues and international events are suspended again in the future.ensuring players have options during the new pandemic.
Another factor that could help sports betting survive another pandemic is the development and improvement of virtual platforms. During the COVID-19 pandemic, many online bookmakers have improved the user experience on their apps and websites. Thus, as part of the new sports blockade Operators can take advantage of advances in artificial intelligence (AI) and big data to personalize the experience for each player.offering more accurate recommendations about the sporting activities available at that time.
In conclusion, the experience gained during the COVID-19 pandemic has allowed the Spanish sports betting sector to be better prepared for future global challenges, including a possible new pandemic.