Emerging research reveals a massive increase in illegal online gaming as pubs and clubs were forced to shut due to COVID-19.
The data comes from Google Trends and Analytics, showing record highs in internet searches in Australia and abroad, believed to be a direct result of the shutdown of all physical venues and cancellation or postponement of all major sports events.
Collaboration between Yogonet and SEMrush found traffic on eight of the top ten online gambling operators in fact experienced a decline in April (2020), analysts posing the cancellation of sports events was probably the largest contributor to this trend.
Some online gambling is permitted in Australia, but while it is not illegal for players to use online casino-style games and poker machines, it is illegal for providers to allow Australians to play them.
Statistics showed Aussies had been gambling less on (illegal) offshore sites prior to the virus, according to the Australian Communications and Media Authority (ACMA), but the past two to three months have seen a rise in online gambling participation.
Recent search data shows an increase in online casinos, pokies, poker and virtual sports, and analysis by Britain’s watchdog, the UK Gambling Commission (UKGC), finds those gambling online during the lockdown are also spending more time and money.
Traffic data by SEMrush reported searches in Australia during April for ‘online pokies’ increased over 230 per cent (to 40,500), ‘online casino Australia real money’ increased over 500 per cent, and searches for reviews of Australian online casinos grew by ten times.
Since gaining powers to order blocking of illegal online casino websites last November, ACMA has directed internet service providers to prevent access to 52 sites, and is attempting to warn consumers of the lack of harm minimisation measures and frequency of fraudulent operators.
Federal Government estimates in 2019 suggested up to $400m is paid out by Australians each year on illegal gambling sites, and ACMA notes it is aware illegal sites are still targeting Australians.
Alex Russell, gambling researcher from Central Queensland University, told the Sydney Morning Herald he had expected such a spike after venues shut, and that the unscrupulous ones were “quite happy to disappear and take your money”.
Beyond the loss to the economy and legitimate operators, these offshore sites rob the country of hundreds of millions in tax revenue.
Also revealed by SEMrush was the fact that the top keywords in English for gambling were “online games” and “lottery”, each with over four million searches during April, suggesting many of those seeking alternatives while the venues are shut are looking for alternate entertainment.
Following a six per cent drop in revenue from its poker machines business, in May Aristocrat Leisure (ASX: ALL) CEO Trevor Croker lamented uncertainty around when punters might return to Australian venues, as the market-leading company made 200 workers redundant and stood down 1,000 staff until the end of June.
While the shutdown hurt its traditional revenues, Aristocrat has invested heavily in its digital division, finding an 18.5 per cent increase as a result of more users and existing users playing its games online and making in-game purchases.
To recapture the affections of gaming patrons with new-found interest online, venues will need to focus on appeal not available on a website, such as customer service, up-to-date machines and quality food & bev, but also employ effective loyalty systems.
Fundamentally a digital battle for the consumer’s attentions, a passive presence of bricks and mortar may no longer be enough to tempt players from the couch, and digital marketing is a powerful and sophisticated beast that quickly learns more about the customer, and connects with them 24/7 – far more adroitly than the typical gaming room.
As pubs reopen, ahead of many physical casinos also looking to resume regular trade, Player Elite’s Jason McQueen believes a loyalty war is coming, and the online gambling menace has the best weapons.
“They pose a real threat to the future of Australian pubs, the punter, and operator profits,” he says.
While loyalty systems have been around a long time, digital loyalty providers are able to leverage the modern interconnectivity through functionality such as Identifying key new members and players in real time, dynamic bonusing and messaging, bespoke games and promotions, and assorted other smart systems.
“The loyalty war will only be won through publicans realising that customers can no longer be taken for granted to turn up and have a punt and a beer,” adds McQueen. “Keep the consumer connected to the bricks and mortar pubs we all know and love by rewarding them for their value.”
