It’s obvious that the coronavirus is going to have a major impact on the global economic picture for some time to come. For the gambling industry in the US, the timing of the outbreak could not have been worse, as the virus started to spread across the country just as the majority of the states to have recently legalized sports wagers were ready to capitalize on events like March Madness in the NCAA, Opening Day in MLB and more. Millions of dollars in revenue going to sports gambling operators and to states, through tax revenue, is now in limbo, but savvy business leaders know how to turn lemons into lemonade. Other sporting events that haven’t always been a huge draw are finding newfound popularity, and helping to keep sportsbooks treading water until things can return to normal.
The impact losing March Madness has on the gambling industry is huge. Between the NCAA men’s basketball championship tournament and the NFL Super Bowl, no events receive as much wagering action, and having to fill the void left by the cancelation of March Madness is not going to be easy. Jay Kornegay, Westgate’s Executive VP of Operations, told USA Today, “There is no magic formula out there that we could put together that’s going to make up for March Madness. “We certainly write more tickets on the first four days of the tournament than we do on the Super Bowl. That’s a gimme.’’
Because the action that gamblers expected to find is now gone, sportsbooks are doubling down on alternatives. Future and prop bets are starting to play important roles in the gambling space, and are helping to ease, in a small way, the pressure felt by COVID-19’s impact on sports.
Other sports are starting to find more interest, as well. For example, Brazilian UFC, which has often been the last option on sports gamblers’ lists, is popular this year. The director of South Point Hotel Casino & Spa’s sportsbook, Chris Andrews, explains, “Like today we’re booking Brazilian UFC. Actually, a lot of people were betting it, so it’s kind of funny in some ways, but sad in others that this is all we have to bet on, but people are betting it. But you know, in our racket, people like to have action, so they’re getting some there.”
Brazilian UFC isn’t the only game in town, either. Mexican soccer, Australian rugby and more are now targets and are providing a much-needed source of revenue to keep the wheels turning. Adds Andrews, “I’m looking for things that people might be interested in. It won’t make up for much, but it’ll keep my people working.”
The Westgate apparently hasn’t been able to push forward without making some tough staffing decisions. Kornegay explains, “Unfortunately, we have to make adjustments to staff levels and hours of operation. But we went through something similar after 9/11 as the sports world paused in this country. I know it wasn’t long-term like this could be, but the rippling effect for 9/11 lasted for months because back then, no one wanted to fly after that, even after the sports world started up again.”
Things will return to normal, eventually, but not before companies deal with additional losses. Fortunately for some, there are ways to offset the drop in revenue and help the economy to continue to churn.
