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How Investment Groups Are Re-Shaping Gambling
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ike so many sectors, the durability of the gambling industry has been rigorously tested over the past two years. As the pandemic ripped indiscriminately through global populations, the proverbial commercial goalposts have kept moving further and further away. An unprecedented raft of curbs on social freedoms, a seismic shift in customer behaviour, and a colossal downturn in consumer confidence, all served to present businesses with the toughest set of trading conditions since the Second World War. However, while some markets succumbed to the tangible pressures borne out of the coronavirus crisis, the gambling sector remained broadly resolute and steadfast in its operations. This is all the more impressive when you consider the traditional environments that this industry relies upon. The energy, atmosphere, and vigour generated by the casino floor was suddenly withdrawn, with venues subjected to a host of draconian measures. Establishing a feel-good gaming ambience whilst respecting restrictive social distancing rules, wearing masks and capping attendances is almost impossible. Clearly, temporary closures
INFINITY GAMING
during rolling lockdowns left casino concessionaires with an even greater headache. Furthermore, the mass cancellation of sporting events left sportsbooks without fixtures and competitions to offer odds on. Bingo halls, national lotteries, and card schools also faced into the abyss. So, how have casino and sports wagering operators pulled through this tumultuous period? A partial contributor is the way in which these companies seamlessly adapted to a radically changing landscape. With bricks-and-mortar buildings under lock and key, particularly in the early days of the pandemic, players sought alternative avenues to gamble. Those who had frequented casino facilities, or perhaps visited sports betting retail outlets, were suddenly presented with a dilemma. However, through a huge shift in focus towards the online arms of their respective businesses, operators were able to facilitate a sharp, sudden, and dramatic incline in app usage. Of course, online markets have presided over substantial growth for some time now, but no one could have pre-empted this spike in activity. In the context of a worldwide pandemic,
for customers, it quickly became the mobile phone screen, or nothing. Nevertheless, there is a less well-documented factor which has enormously supported sector resilience in the last 24 months. Private equity firms, venture capitalists, and SPAC investment groups have continued to circle the industry for opportunities, and shown no hesitation in swooping down on potential prospects. Despite chaos reigning supreme across global economies and financial institutions, these investors have maintained a level of consistency in their approach, perhapsunseen elsewhere. In this way, an almost self-fulfilling prophecy has started to materialise. As investment companies continue to demonstrate unshakeable confidence and belief in the future prosperity of gaming markets, the industry responds in kind, projecting the image of a calm, controlled and stable environment. These efforts have conspired to produce some major acquisition activity, providing the elusive funding which has escaped so many industries amidst the worse economic episode in a generation.
