Influence of Coronavirus Disease on Gambling Activity 2019--An Analyse of Revenue-Based Taxation for Online- and Land-Based Gambling Operators during the Pandemic

 The Influence of Coronavirus Disease 2019 on Gambling Activity - An Analysis of Revenue Based Taxation of Online and Land-Based Gambling Operators During the Pandemic


Background: There are concerns that increased gambling problems may occur during the coronavirus infection (COVID-19), crisis. This is especially true in situations with high online gambling. Also, there are risks of people migrating from riskier land-based gambling to more lucrative online-based ones. There are very few data sources available that aren't self-reported. This study examined changes in Sweden's online- and land-based gaming markets over the first month of COVID-19's social impact.


Methods: Data were extracted from monthly taxation data of licensed Swedish gambling operators. These monthly tax payments are directly related to gambling revenue. Monthly subdivisions of Sweden's gambling markets were tracked from February 2020 (mainly in Sweden) until June 2020 when the market was opened again after COVID-19 lockdown.


Results: The overall revenue-based taxation in the licensed gambling fell markedly from February through March but stabilised onto a general decrease through June. Despite some declines in March, the level of commercial online gambling/betting remained relatively steady through June. However, horse betting increased sharply during pandemics, but then returned to normal levels in the latter part of the period. The state-owned online casino and betting operator declined markedly during the pandemic. The pandemic saw little change in the remaining commercial operators. These were mainly involved in online betting and casino. The smaller casinos that cater to restaurants declined in size during the pandemic. Major state-owned casinos closed completely. The number of state-owned lottery and electronic gambling machines declined markedly, but they quickly recovered to preandemic levels.


Conclusions: The revenues of commercial online gambling companies remained stable during the pandemic despite the drastic lockdown in sports. Based on self-report data, it appears that chance-based online gambling may have been a stable player in the gambling market in spite of the COVID-19 crises. An unexpected increase in horse betting during sports lockdown and a decrease when sports reopened confirm the existence of COVID-19 related migration between gambling types. casino gambling

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