A new report, ‘Coronavirus Recovery Analysis A Gaming Industry White Paper,’ has been released by The Innovation Group (TIG) documenting the effect of COVID-19 on the gaming industry since the pandemic entered the global scene in mid January.
The firm initially monitored domestic and foreign gaming activity and revenue declines on a market-by-market basis, before it became clear in mid-March that casinos along with the entire hospitality and leisure industries would effectively be shut down.
Since then, its emphasis has been multifold, fostering dialogue between communities, owners, investors, and regulators to explore how they meet business needs and best practises during the closure process.
The business has also developed a forecast model for a wide range of possible trends of recovery across gaming markets which can be adapted locally as new knowledge and data become available.
TIG added that it monitors consumer sentiment to help its Innovation Analytics team to use player expectations in the modern gaming world to refine forecasts and inform marketing decisions.
The White Paper, the firm said, is a detailed study of COVID-19 possible trends of recovery for the gaming industry. In the recovery model forecast, US commercial casino revenue for 2019 is used as the benchmark, and provides regional percentage recovery figures that apply to commercial and tribal casinos. The study considers the target, the foreign and online gaming markets qualitatively.
The study applies a number of demand recovery scenarios based on the degree of economic decline and perceived customer security; ramp up economic recovery and; ramp up consumer acceptance of public spending and use.
Findings suggest that the rate of sales recovery will be lower than the market potential by the end of the first year of service following reopening as long as social distancing steps are in place.
TIG Explained: “A casino with extremely high utilisation pre-virus would reach pre-virus levels of only 33%, while a casino with minimal utilisation would reach 73%, or an additional drop of approximately 10 percentage points off the demand potential. These estimates are based on closing three of every five gaming positions. If wider spacing is required, the recovery would naturally be lower, or vice versa.”
You can view the white paper theinnovationgroup.com.