English gambling venues are closed once again as the second covid-19 lockdown runs to December 2nd. This includes all betting shops, gaming arcades, casinos and bingo halls. Many companies in the gambling industry are warning of the massive economic impact this is going to have on their businesses, with GVC talking about a £43 million loss.
GVC Warns Government About Financial Impact of Second Lockdown
GVC, the betting giant behind brands such as Ladbrokes, Foxy Bingo and Coral, has warned the government that they are set to face a £43 million hit as their shops close. This figure is not just here in England, but also taking into consideration their business across Europe.
The FTSE-100 company owns hundreds of betting stores across the UK and the EU and the vast majority are expected to close in the upcoming weeks and months. Out of the £43 million loss, the company expects around £27 million of that to be in the UK with the announcement of a second lockdown. This estimation also includes any benefits from government support.
Gambling Venues Still Recovering from First Lockdown
Gambling venues were hit particularly hard in the first lockdown compared to many other industries as betting shops could not open until 15th June, bingo halls reopened on the 4th July and casinos couldn’t open up their doors again until mid-August. This was from the initial lockdown that the country entered on 23rd March.
While venues are closed across the whole of England, the industry has still felt the effects of the original lockdown in the past few months with venues being closed in many areas of the north of England, parts of Scotland with their tiered system an in Wales too with their short ‘firebreak’ lockdown.
What Are Analysts Predicting for the Gambling Industry’s Future?
Analysts have been looking at the future of the gambling industry and, unsurprisingly, it is the retail side that is taking the biggest hit while online operators thrive. Retail stores have also had to spend money putting in place Covid-19 prevention measures that could now be considered a waste with these new lockdowns imposed. Many more people are now seeking entertainment options whilst stuck at home and so online casino games, poker, virtual, e-sports and more are all booming. However, this rise in profits for digital companies is financial ruin for many betting shops, casinos, bingo halls and more.