Change the Game: The Impact of COVID-19 on Gambling
Impact of COVID-19 Pandemic on the Gambling Sector: A Look Five Years Later
The COVID-19 pandemic shook up the world, yet few predicted the magnitude of the disruption it would cause when the World Health Organization (WHO) declared a global pandemic on March 11, 2020. Initially, people believed it would only last a few weeks before life returned to normal. But boy, were they wrong!
The pandemic sent shockwaves throughout all industries, with some adapting seamlessly while others were left struggling to survive. The US gambling sector, in particular, underwent significant changes.
The Pandemic's Bite
As countries scrambled to deal with the new virus, the United States grappled with the decision of whether to impose full lockdowns. With Swedish-style 'Folkhemmet' on one end of the spectrum and the strict British-style lockdown on the other, the U.S. eventually chose a middle ground. Regions like Las Vegas and Atlantic City were forced to shut their casinos, sportsbooks, and racetracks overnight.
Stuck at home, people turned to unconventional methods of gambling. With traditional sports paused for months, the masses began wagering on the most obscure events, such as drone racing and table tennis. Rather than being a bust, the online gaming sector thrived during this time, providing a lifeline of income for brick-and-mortar casinos in states like New Jersey that required mobile platforms to tether to for a license.
The Long Road Back
As the country began to recover from the pandemic's grip, the gambling industry started crawling its way back towards normality. States loosened their lockdowns and gaming properties were given the green light to reopen, albeit at limited capacity. For instance, Las Vegas allowed gaming floors to open at 25% capacity only once strict sanitation and social distancing protocols were enforced.
Powerhouse casino companies like MGM Resorts International took the further step of mandating COVID-19 vaccinations for all staff, which led to its own set of issues. Travel, still a challenge, continued to suppress visitor levels for regions that heavily relied on overseas tourists for vacations and conventions.
The Post-Pandemic Boom
With people cooped up for so long, there was a pent-up demand for travel that quickly sent visitor numbers to popular gambling hubs skyrocketing. Share prices of land-based casino companies recouped sharply as fears that people would stick exclusively to online gambling platforms were proven unfounded.
The boom meant the commercial gaming revenue in the United States hit new highs for the last four years, with the American Gaming Association (AGA) reporting the 2024 total nearly hitting $72 billion. The percentage of this sum that online operations generated has continued to rise, hitting 30% last year. As more states expand their online gambling laws, this number is sure to climb even higher.
Casualties of the Pandemic
While online operators enjoyed a golden era, regional casino operators struggled to stay afloat. With online platforms capturing the lion's share of the growth due to convenience amid social distancing measures, these operators were forced to adapt or risk being left behind. To combat this, companies like MGM Resorts and Caesars Entertainment began beefing up their online offerings, with the latter even buying William Hill for £2.9 billion ($3.7 billion) in April 2021 to bolster its internet portfolio.
As the industry recovers, it is worth noting that some regions, like big gambling destinations like Las Vegas and Atlantic City, still haven't managed to get back to pre-pandemic visitor levels. Moreover, there is ongoing hesitancy among lawmakers in certain states to introduce online casinos, with fears that they would eat into the revenues of land-based facilities and potentially result in significant job losses.
This hesitancy is surprising, given that research has found that iGaming actually helps boost land-based revenues. It seems that only time will tell when the dam breaks, and more states embrace the higher-margin online casino route.
The Future of Gambling
While the industry certainly faced challenges, it has emerged more resilient on the other side. With technological advancements driving the sector forward and a strong push for gambling expansion nationwide, the gambling industry is set to transform further in the coming years. The casinophere will continue to evolve, offering both challenges and opportunities for participants and operators alike.
The pandemic served as a catalyst for positive change, driving digital adoption and demonstrating the importance of staying agile in the face of adversity. Let's see what the future holds for this ever-evolving industry!
Insights From Expert Research:
- The U.S. online gambling industry has seen accelerated growth resulting from shifting consumer behavior and the increased adoption of digital platforms.
- Mobile platforms now dominate the industry, with operators focusing on mobile-first strategies and the use of biometric logins, AI personalization, and real-time betting features.
- The growth of interactive gaming formats (e.g., live dealer studios) has surged, enhancing user engagement through real-time interaction.
- The pandemic's influence is reflected in the sustained expansion of the market, with the market size reaching $12.68 billion in 2024 and a projected CAGR of 9.8% through 2030.
- Online verticals (sports betting and iGaming) now account for over 25% year-over-year growth, outpacing traditional sectors. While brick-and-mortar gaming revenue declined by 4.1% in February 2025, online growth has significantly compensated, signaling a permanent shift in consumer preferences driven by pandemic-era habits.
- Despite the initial belief that the COVID-19 pandemic would only last a few weeks, it caused significant disruptions in industries like finance, business, and technology, leaving some struggling to survive.
- As the pandemic forced casinos, sportsbooks, and racetracks to close, people turned to online gambling platforms for entertainment during lockdowns, providing a lifeline of income for brick-and-mortar casinos in states like New Jersey that required mobile platforms for licenses.
- The boost in travel demands after the pandemic led to a surge in visitor numbers to popular gambling hubs, causing share prices of land-based casino companies to rebound sharply.
- The post-pandemic landscape has witnessed the online casino industry flourishing, with significant growth in online operations, accounting for 30% of the total commercial gaming revenue in the United States in 2023.


