As the Covid-19 virus spikes in the UK, Prime Minister Boris Johnson announced new restrictions in England, including the closure of casinos and betting shops in Liverpool, starting October 14. Implemented according to a tier system, Tier One includes regions with the lowest rates of infection, which will abide by the basic national rules. Tier three includes restrictions where transmissions are rising.
The new measures will be reviewed after every month, officials said. They will follow Scotland’s recent closures of casinos, along with pubs and restaurants from October 9 through at least October 25.
The latest restrictions land another blow on the UK’s casino and retail industry. Betting shops have been open since June 15 after shutting in mid-March, and casinos only reopened August 15; they offered to stop selling alcohol to avoid being shut down.
Meanwhile, Gambling Commission figures showed sports betting yield dropped to $214.5 million, a 21.4 percent decline from August 2019 to August 2020. Analysts blamed the lack of top-tier sporting events. In addition, nearly all other segments posted drops, since consumers had more spending options as lockdowns eased.
Slots revenue grew 0.8 percent and other casino games dropped 9.9 percent. Poker fell 7.5 percent—a 58.4 percent drop from its peak in April, the height of the Covid-19 first wave. Virtual sports fell 16.1 percent from July, down 47.9 percent from its April peak.
With the return of traditional sports, esports betting in August dropped 29.5 percent. Other forms of legal real-money gambling saw revenue fall by 8.8 percent from July to August.
At the same time, the number of active online players fell 9.7 percent to 3.8 million, although that remained number one in terms of customers. Slots players decreased 2.1 percent to 2.4 million.
In the British betting-shop market, over-the-counter revenue rose 13.9 percent as more betting shops reopened. Self-service betting terminal revenue dropped 29.3 percent.
The commission’s latest player polling data found post-lockdown, 70 percent of players had not changed their gambling habits. Another 18 percent said in fact they spent less on gambling; only 8 percent said they spent more.
Meanwhile, facing another round of closures due to the Covid-19 pandemic, some casinos in England and Wales have proposed a self-imposed ban on alcohol sales in hopes of staying open.
PM Johnson is expected to introduce a new three-tier system of local lockdowns to combat the virus and casinos could again be forced to close down. In Scotland, First Minister Nicola Sturgeon has already introduced new COVID-19 measures which forced casinos, bingo halls and other hospitality businesses to close.
U.K. casinos already face a 10 p.m. curfew for hospitality and leisure venues that went into effect last month. Michael Dugher, chief executive of the Betting and Gaming Council said that move by the government “signaled the death knell for the casino industry.”
The council is now proposing stopping alcohol sales in hopes of avoiding a total shutdown.
“Ministers need to understand that casinos are not pseudo-nightclubs or places where young people go to drink,” Dugher said in a press statement. “Nevertheless, they are willing to reduce their risk levels even further by refusing to serve alcohol, which the Government seems to think is another factor in the spread of the virus.”
UK Gambling Commission Chief Executive Officer Neil McArthur, speaking at the recent Money and Mental Health Policy Institute conference, noted the commission’s April ban on credit card gambling already is helping to lower problem gambling. “We have already seen the introduction by banks of gambling blocking software, together with the use of data to support customers affected by problem gambling,” he said.
McArthur announced, “We will shortly be launching a consultation on customer interaction and how gambling operators should use affordability to keep their customers safer. We want to work in partnership with the financial sector to find innovative ways to reduce gambling-related harm. We all have a part to play to protect vulnerable consumers. The Gambling Commission has already banned gambling with credit cards, as evidence showed that it would reduce the risk of gambling harm to consumers. That was an important step, but there is always more that can be done.”
