The Immediate Impact of the Pandemic
The onset of the COVID-19 pandemic brought unforeseen challenges to various industries worldwide, and the gambling sector in Africa was no exception. One of the earliest and most significant impacts was the suspension or cancellation of major sporting events, including the highly anticipated Olympics. This disruption had a direct and immediate effect on the sports betting segment, which forms a substantial portion of the gambling industry’s revenue in Africa. The absence of live games left punters with limited options, mainly re-runs of previously recorded matches. This situation led to a drastic decline in sports betting revenue, nearly halting it completely.
Virtual games, though popular in certain markets, couldn’t adequately replace the thrill and engagement of live sports betting. These games, at their best, served as a supplementary option rather than a complete substitute. Additionally, other gambling avenues such as casinos were not immune to the pandemic’s impact. Many casinos across Africa had to shut their doors, adhering to the lockdown measures. Notably, even in the best of times, online gaming rarely accounts for more than 30% of total gaming activity.
The Economic Strain and Future Outlook
The extended period of lockdown and the uncertainty of its duration placed significant financial strain on both individuals and companies within the gambling industry. Many people lost their livelihoods, and companies, barring a few well-capitalised ones, faced the inability to sustain their workforce’s wages beyond a month under continued lockdown conditions.
Looking ahead, the post-pandemic era for the gambling industry in Africa is expected to be shaped by several factors. The possibility of multiple waves of infection and consequent rounds of economic shutdown looms until a viable vaccine is widely available. This uncertainty suggests that the gambling industry might have to adapt to a new normal, where intermittent closures and operational limitations could be commonplace.
Case Study: South Africa’s Casino Industry
South Africa’s experience offers a detailed insight into the challenges faced by the gambling industry in Africa during the pandemic. With 38 casinos operating across the country, the impact was significant. Following global trends, South Africa imposed strict measures to curb the spread of the virus, which included the closure of all physical gambling venues from March to June 2020. Billy Gray, Peermont’s group gaming executive, recalls the stringent restrictions placed upon reopening, including limited operational hours and alcohol sales bans.
Even when the casinos reopened, there were severe restrictions on capacity and operational hours. Social distancing measures meant that venues couldn’t host more than a fraction of their normal capacity. The Emperor’s Palace, for example, kept several of its facilities closed due to the lack of demand and severe restrictions. It wasn’t until late 2021 that casinos started operating under more normal conditions, but the business levels hadn’t fully returned to pre-pandemic norms.
One unexpected issue that arose was the lack of locks on casino doors and forgotten combinations to vaults, as these facilities had never been closed before. This situation exemplifies the unprecedented nature of the pandemic’s impact on the gambling industry.
Conclusion
The post-pandemic outlook for the gambling industry in Africa is a complex interplay of adapting to new operational realities, embracing technological advancements like online gaming, and navigating the uncertainties of potential future waves of the pandemic. The resilience shown by the industry, as exemplified by the South African casinos, indicates a potential for recovery and growth, albeit under a new set of rules and expectations shaped by the pandemic experience.
