The way that we take risks is different than our parents. With COVID-19 causing everyone to be shut in, it showed us how redundant live entertainment can be. Paired with shifting interests and the diminished need for large crowds, the Wagering and Betting industry has taken a noticeable blow. But does this blow equate to a shrinking industry? Is The Gambling Industry Declining?
What Is Wagering and Betting?
Gambling is the wagering of money or something of worth on an event with an unknown result, with the main goal of winning money or material objects. Gambling thus involves the existence of three elements: attention, fear, and reward. As alluring as it may seem the most popular form of this past time involves animals. Thus, making it problematic in this eco and self conscious age. This is a simple explanation as to why this hobby hasn’t attracted positive attention from a younger demographic.
Gambling industry faces 8 percent decline since Covid-19 in 2020. As such, we assume that the best-case outcome is a year-on-year fall from about 1.0% to $452 billion, potentially taking the overall gaming industry down to 2018 rates. This marks a 4.8 per cent decline of $475 billion from pre-Covid-19 projection for the year.
Is The Gambling Industry Declining?
Take for instance, the Melbourne Cup reported a 4th successive year of reductions in patronage and betting turnover. In the face of animal rights issues and heavy pressure turnout dwindled. That pattern is aligned with that of the overall industry, with sales falling to $1.5 billion. While falling at an annualized 2.3 per cent over the five years to 2018-19.
The sector was greatly impacted by the attention from the ABC inquiry into the Queensland abattoir and animal cruelty allegations. Attendance at the Melbourne Cup fell by 2.5 per cent throughout the new year. While the overall attendance of Derby, Cup, Oaks and Stakes dropped by 9.0 per cent in 2019. Such decreasing patronage estimates reflect a long-term pattern. The Melbourne Cup has also diminished some of its luster.
The wage turnover of the Melbourne Cup at TAB distributors has gradually declined. Bookmakers have had to deal with a recent point of sale taxes that weighed on the competitiveness of betting companies. This adversely impacted their offerings. Nevertheless, online bookmakers have gradually gained market share from physical bookmakers. This pattern is aligned with the broader rise in wagering turnover for cross-bred racing. With TAB wagering stagnating over the five years to 2017-18, other bookmakers have doubled their wagering turnover in the period.
With changing preferences and social consciousness the betting and wagering industry is on a slow decline.