By
Mike J. Davies
Editor in Chief at Casinos.US Updated: 06/07/2020
Mike is our Senior Editor and experienced gambling strategist. A former hockey player, he transitioned to the casino industry after finishing his B.A. in English. Blackjack systems, online casino guides, gambling terms, and more – Mike is familiar with all fine points of gambling.
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The global COVID-19 pandemic resulted in businesses across the United States, including casinos, being temporarily closed to reduce the risk of spreading the infection.
The closure of casinos resulted in only two weeks of activity in March and no onsite casino activity at all in April. This, in turn, has led to huge financial losses for the casinos and the states, who profit from gambling via taxation.
However, the figures for April have shown that there was a record surge in online poker and casino gaming in April. This has enabled casinos and the state to make up for some of the lost revenue. With many people on lockdown during the month, and with casinos closed, many have turned to online casinos during the pandemic.
According to one industry analyst, Valerie Cross from Play Pennsylvania, the rise in online poker and gambling activity will have an effect for some time to come. She said:
A behavioral shift that makes online gambling permanently more popular is likely to continue even after casinos reopen. But the reality is that despite the gains made at online casinos, the closing of land-based casinos left a revenue hole that can’t be made up.
A number of states have seen a particular surge in online poker and casino gaming. The figures show that New Jersey took in close to $80 million from online casino and poker in April, which reflected a year-on-year increase of 118%. In April last year, online casino operators took in $36.6 million.
Pennsylvania also enjoyed a surge in online casino and poker gaming in April. Figures from the Pennsylvania Gaming Board showed that revenue from these online activities doubled compared to February of this year, which was prior to the closure of casinos across the state.
Recently released data also showed that while gaming revenue in Las Vegas had gone through the floor, what little revenue there was came largely from online poker activity.
In addition, research shows that there was a sharp increase in Google searches for online poker, with the increase starting in the middle of March when casinos closed. Data shows that searches for online poker reached a five-year high as more and more people turned to online gambling activities. The lockdown also contributed to heightened interest in online gaming from people looking for entertainment while stuck at home.
While the impressive figures spell good news for the states affected, officials have been quick to point out that they do not make up for the huge losses stemming from brick-and-mortar casinos being closed. Also, the cancelation of live sports during April has seen sportsbook operator revenues go through the floor.
However, if the popularity of online gaming continues when casinos reopen their doors, it could help states to slowly claw back more of the lost revenue over the longer term. The popularity of online gambling recently could also persuade some states that don’t offer it to reconsider their stance.
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