SCCG Management Weekly Newsletter Volume 28
THERE'S A MEANINGFUL TREND IN DECLINING COVID 19 INFECTIONS
As of February 17, 2021, new COVID-19 infections in the last 14 days were down 43% from the previous two-week period. This trend reaches back to January 8, 2021, when new cases began a steady decline.
In real numbers, we still have almost 78,000 people infected with the virus every day. Here at the home office in Clark County, Las Vegas, despite the decrease in reported infections, The test positivity rate in Clark County is very high, according to the CDC tracking data. Test positivity is just the relationship between tests that come up positive and the total number of people tested. When that percentage is too high, it can indicate that many people in the community are infected but have not been tested. Our nearly full ICUs in Clark County indicate this is probably the case.
WHAT DOES THIS MEAN FOR US IN THE MID-TERM?
Dr. Anthony Fauci reported a couple of days ago that "Most Americans will have access to a Covid-19 vaccine by mid-to-late May or early June". This date slid a little bit out because Johnson and Johnson pulled back on their prediction for how many vaccines they would be able to deliver by the end of June. So, if the expected vaccine doses ship and people get those vaccines in their arms, when do things get back to normal? Fauci says, "So when you hear about how long it's going to take to get the overwhelming proportion of the population vaccinated, I don't think anybody disagrees that that's going to be well to the end of the summer and we get into the early fall." An "overwhelmingly" vaccinated US population is what gets us back to normal:
Getting our kids back in school
Opening public and private spaces to crowds
Unlocking the retail consumer economy
WILLINGNESS TO GET VACCINATED IS STRONG
Right now, the demand for vaccines is far greater than availability, but in one respect, that's a good thing. It was not a foregone conclusion that most people in the US would be willing to get the vaccine. There's still a significant anti-vaccine community within the US that has generalized concerns over vaccine safety, much less COVID-19 vaccines that have been developed and approved under an emergency authorization, in an unprecedentedly short timeframe.
THE RISKS TO REOPENING
A couple of things could still trip us up. First is the risk that the COVID-19 virus variants could emerge and cause significant increases in infection rates and outrun our ability to release vaccines. The second is that people see the decreasing infection rates and the release of vaccines and reduce taking the basic steps we're taking to prevent infection: frequent hand washing, wearing masks, and avoiding crowds. This could also reverse the positive trend in infection rates.
THE BOTTOM LINE
If everything goes well, we emerge into the light at the end of the tunnel by the End of Summer/Beginning of Fall 2021. That's something we can all look forward to, and it's something we should all work and plan for.
Trends we can look forward to are, of course, the continued expansion of retail and online sports wagering, iGaming and live dealer technology. You can read more thoughts state of the post-COVID world for the casino industry in Steve Crystal's interview with VegasSlotsOnline.com at the links below:
Steve Crystal Interview - Part 1
Steve Crystal Interview - Part 2
If you're interested in ways that you can get a head start on helping satisfy the massive pent up demand for all the things that our industry provides and will provide - meaning iGaming and online sportsbook wagering - feel free to reach out. We're ready to talk.
WELCOME TO YOUR ROUNDUP OF EUROPEAN IGAMING NEWS
Our newest weekly feature article summarizes the thoughts of Jake Pollard, an experienced journalist and editor who has covered the online gaming and betting industry for many years. He has written for the leading media outlets as well as operators and suppliers in the igaming space. His areas of focus are wide-ranging and include regulatory developments in the US, emerging markets in South America and how European countries are adapting to a decade of igaming regulation.
UK
The UK is the biggest igaming market in Europe and the past few years have seen concerted efforts to curtail and minimise the industry’s scope of activity through media campaigns and parliamentary lobbying. These efforts have focused on operators’ policies around responsible gambling and player safety, advertising and sports sponsorship. A review of the Gambling Act is currently underway in the House of Commons, with industry opponents focusing on reducing advertising platforms for operators and imposing affordability checks. The latter in particular is causing much consternation among industry stakeholders. The general idea is that once punters reach £100/$139 in monthly losses, they would have to prove they can afford to keep gambling and would be required to submit payslips, utility bills and other documents proving their income levels. Operators believe such a measure would wipe out a huge chunk of mid-range customers: players who spend slightly more than an average bettor but not VIP-level; and who would simply refuse to put up with the inconvenience and with passing on such sensitive data to betting and gaming sites. There is a long way to go, regulatory changes will be put forward in the next 18-24 months, but the topics at play show what is at stake for the industry.
EU Advertising
Gambling advertising is also a major topic across major EU markets such as Italy and Spain. Since 2019, gaming and betting advertising is banned in Italy and Spain has pencilled its own ban for August this year. Trade groups have been passionate and reasoned in pointing to the lack of consultation and arbitrary nature of the measures, especially as marketing is one of the key benefits that is meant to come from being fully regulated in those markets.
M&A, Finance
The UK regulatory pushback has increased the gravitational pull of the market. The current wave of M&A and SPAC-backed listings seems to make it inevitable that more (mainly) UK companies will be acquired by U.S. entities or will float as 100% U.S.-focused companies. The list already includes SBTech/DraftKings, GAN and Flutter might decide to do so with FanDuel/FoxBet. William Hill is now part of Caesars Entertainment. Entain has (so far) turned down MGM’s initial overtures, but most industry contacts believe the U.S. group will circle back with a renewed bid to own 100% of its BetMGM joint venture partner.
VegasSlotsOnline News spoke with Stephen A. Crystal, head of Betfred Sports US and Canada development, to get his take on Las Vegas’s potential for recovery post-COVID-19.
Stephen Crystal, Betfred head of US and Canada development, outlined the company's 2021 plans.
The operator will open a Nevada sportsbook this year, aimed at the next generation of bettor.
Crystal believes the US consumer's desire for sports betting has exceeded expectations so far.
He said US sports betting, iGaming will reach UK levels of maturity quickly thanks to innovation.
Betfred Sports exec Stephen A. Crystal outlined the operator’s expansion plans and his predictions for the US’s iGaming and sports betting markets.