The impact of Coronavirus has led to the shutdown of all entertainment events such as concerts, conferences, sports, land-based casinos and cinemas are deemed to remain dark until the end of June at least. Since travelling is also restricted, we are not facing the best times ever.
In addition, Chetan a Morgan Stanley analyst has estimated that “this downturn in the economy will be sharper, but shorter than the Global Financial Crisis (GFC) in 2008” (May 12, Morgan Stanley)
In comparison to the last global crisis in 2018, emerging markets such as Brazil, China, India, Russia, Mexico, Indonesia and Turkey, essentially recovered without severe harm.
Contrariwise, some Morgan Stanley research analysts believe that this time in 2020 it will be different, due to:
- Weaker starting situation than 2008 causing vulnerability and public debt with current account deficits being much higher.
- Lower oil prices for net oil exporters
In my opinion, I think we are better prepared with disruptive technologies to bounce back and improve public health and our socioeconomic factors.
Check this article “How Disruptive Technology is Revolutionizing Healthcare” (Lenovo StoryHub,2019)
It should be noted that this recession started in the form of a public health crisis and not financial crisis. Additionally, the financial services are more responsive today in terms of payment solutions, providing business loans, and helping small business owners with investments than it was during the 2008 crisis.
That’s probably why Morgan analysts believe that this Covid-19 downturn in the US economy will be shorter. On the other hand, Money Marketing says “Covid-19 downturn could see UK economy shrink 14% and push the country towards its deepest recession” the warning was announced by the Bank of England.
Optimistic Forecasts
At this moment only small US states allow online casino-related activities including Nevada, New Jersey and Pennsylvania and more than 15 states allow online sports betting.
“We believe the impact of Covid-19 could spur more states to legalize online casino and sports betting” said Thomas Allen, gaming & lodging analyst at Morgan Stanley.
Entrepreneurs and the government are seeing ways to help the economy stabilise again, in New Jersey online casinos revenues (excluding sports betting) are on trajectory to exceed 700$ million this year, as opposed to $483 million in 2019, said Thomas Allen.
Conclusion
This isn’t an article to persuade you to gamble online, this content was created to raise awareness, and educational purposes for those interested in online gambling.
iGaming is booming in the US, persuading some states to legalise online casinos and sports betting to at least help the economy improve by producing more jobs and raising corporation tax.
Could iGaming and online casino companies help the economy recover from the covid-19 financial impact by increasing government revenue?
Lastly the truth to be told, due to social distancing and travelling strictly restricted, online social casino games such as slots, poker and blackjack are set to skyrocket this year. In the US more states are now looking to legalise online gambling. (April 20, Barron’s)
