Lockdown fuels online betting spree as Star and Crown re-open casinos
Australians are gambling hard during lockdown, with two key sets of data revealing a 64 to 105 per cent uplift in those taking a punt.
Australians are gambling hard during lockdown, with two key sets of data revealing a 64 to 105 per cent uplift in those taking a punt.
The latest Illion Alphabeta data, from the week beginning June 21, has shown an 64 per cent rise in online gaming, while NAB Economics Data Insights reveal an 105 per cent increase in gambling. Gaming activities recorded the highest increase in spending, according to NAB, in front of residential care services and internet publishing and broadcasting, which rose 38 per cent and 26.1 per cent respectively.
Meanwhile, online gaming recorded the third-biggest surge in spending, behind food delivery and furniture and office equipment, which has risen 247 and 92 per cent respectively, according to the Illion data.
But wagering companies say while online gaming has soared, overall expenditure has declined after government-enforced restrictions shut down the big casinos, major sport codes and poker machine venues.
Listed gaming giant Tabcorp — which has stood down about 700 staff, mostly from betting booths it has been forced to close — said the wagering spend had shifted from physical outlets to digital channels.
“While COVID-19 restrictions were impacting on TAB agencies and other forms of retail-based gambling we did see a shift in activity towards digital channels,” a Tabcorp spokesman said.
Brent Jackson, chief executive of industry group Responsible Wagering Australia — the members of which include the nation’s biggest online bookmaker Sportsbet, as well as Ladbrokes, Bet365 and others — said gambling had been included in what has been described as the biggest shift to online in 20 years.
“Reports around huge increases overall in gambling, we’re not seeing that. What we have seen is a natural migration from over-the-counter to online. It’s pretty much the same with every other retail business in the country, whether they be restaurants, hardware, consumer goods and electronics — all of the online platforms are seeing large increases and gambling is no different. There is actually no option for them to do it over a counter at a pub or a club.”
But as more gamblers turn to screens to have a flutter, Mr Jackson was concerned it could create an opportunity for illegal offshore operators to enter the market, offering various products from digital poker tables and other gaming apps.
“The concern we have is with the shut of retail operations, particularly retail casinos and pokies, there could be a migration to illegal offshore operators who are unlicensed,” Mr Jackson said.
“They offer online casinos and pokies, which of course are banned in Australia. We are concerned not only from a tax leakage point of view, it’s that there is absolutely no consumer protections with these overseas illegal operators.
“If that shift is happening, it’s a big one for our regulators and industry more broadly.”
Star Entertainment began a phased reopening of its flagship Sydney casino in June, and started reopening its Queensland properties last week.
“Trading performance at The Star Sydney in June 2020 improved over the month as permitted capacity and visitation increased. Given operating restrictions, only private gaming room customers were invited,” Star Entertainment said in a statement to the ASX.
“Over this short period of time, the performance of The Star Sydney in June 2020 was consistent with management expectations and was significantly below normal levels given the operating restrictions.”
Star rival Crown Resorts reopened its Perth casino late last month. Its flagship Melbourne casino remains shut.
“Crown’s priority is to the health and safety of our employees, customers and the community,” chief executive Ken Barton said.
“I have a deep gratitude to our employees for their understanding and commitment during this painful and highly uncertain time. We are continuing to investigate ways in which we can support our employees on an ongoing basis.”
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