Africa's Poker and Gambling Market: What Will It Look Like After The Covid-19 Pandemic?

As the world continues to feel the effects of the virus, businesses across the world have noticed a drop in revenue. Though some are worse than others, it is the economy in South Africa that is potentially facing the biggest hit.

With many casinos and businesses struggling, many are asking what this industry will look like following the pandemic.

The Ongoing Effects Of Covid-19

Coronavirus has had an unprecedented effect on the world with many of us having to change our lifestyles entirely. With a majority of us working from home and restricting our travel to just the supermarket for necessities, the effects on the economy have been substantial. With several businesses forced to close and highstreets empty, many businesses are relying heavily on government help to keep them going during this unprecedented time. From coffee shops and pubs to high street clothing chains, a large majority of businesses are suffering financially.

The Impact On Gambling Across The World

The impact on businesses such as ambling is something that has been felt across the world. With gambling taking a hit in New Zealand with a drop of 60.6% in revenue [3] compared to this time last year. This drop in revenue is an issue that many countries are seeing with their gambling industries as many casinos were forced to close mid-way through March. With a harsh set of lockdown measures implemented in South Africa a majority of hotels and casinos where forced to close as travel was limited to necessities only.

This has meant that a majority if the leading casinos such as Sun international. With the prolonged lockdown causing a vast amount of economic uncertainty, sun international has been one of the many casinos affected. As a result of these financial strains, the company has announced the permanent closure of two casinos [4]. However, whilst many brick and mortar casinos have struggled, the use of online casinos and video poker has increased. As many more people spend time inside, these online casinos are profiting. However, they too have experienced a drop in the number of people using these services.

The Potential Of A Second Peak

As the lockdown is set to continue in South Africa, there are growing concerns about how these casinos will be able to afford to stay open during this time. As Sun international continue to monitor their financial situations, there are many wondering the effects that are being felt by some of the top poker sites [5] available online in South Africa. Though this has still experienced a drop in revenue as a direct result of covid-19, this is significantly lower than brick and mortar casinos.

However, with the threat of a second peak of the virus should the lockdown be lifted too early; many are wondering whether or not this could do more economic damage. Though this is a divided opinion at this time, a second extension is looking likely.

The Threat Of A Lockdown extension

As the South African government implement an extension until the end of April [6], many are looking at the economic impact of this. As several businesses begin to struggle, the extension of the lockdown into the month of May could be the final nail in the coffin for a majority of businesses. Though this remains uncertain, this is something that many countries are monitoring throughout the course of the government talks to decrease the potential of a second peak.

With this in mind, the ongoing pandemic is looking to have a huge economic impact as a result. However, with careful planning and consideration of the rate of infection, it is possible to get the economy up and running without risking the rate of infection rising.