IGT, a gambling software company, revealed when the gambling industry will recover from devastating financial losses due to the pandemic.
According to Telecomasia.net, International Game Technology said that the gambling industry will fully recover from the effects of the coronavirus in 18 months.
The company’s revenue in the last quarter of 2020 amounted to $885 million. According to IGT, this amount is less than last year’s figure by only 15%.
The company’s revenue in the last quarter of 2020 was $885 million. IGT estimates that this amount is only 15% less than last year’s figure.
Also, the company received $886 in cash for 2020, which is the best figure for the company in the last 5 years. IGT analysts are sure that in the future, the company’s revenue will continue to grow and after a year and a half will return to the previous level.
The situation was much better even after the global economic crisis of 2007-2009. At that time, revenues fell by only 8.4%, although the global economy was severely affected. In 2020, revenues of the gambling industry fell by 31% (to $30 billion). For the first time in six years, the US market showed no growth.
The three leading gambling holdings in Las Vegas (Las Vegas Sands Corp., MGM Resorts International and Wynn Resorts Ltd.) have lost more than $1 billion in total in the fourth quarter of 2020.
The reason for such losses was that the casinos were closed due to the threat of the spread of the coronavirus. According to the latest data, 27% of US casino employees have lost their jobs.
MGM Resorts International CEO Bill Hornbuckle’s prediction seems more likely. He said that the company’s net revenue in the fourth quarter of 2020 was $1.5 billion, which is 53% less than the amount that was received a year ago. At the same time, the net loss amounted to $448 million. In this regard, Hornbuckle said that he hopes that profit will approach the indicators of 2019 only by the fourth quarter of 2022.
Casinos in Europe are also experiencing a drop in revenues. EGBA reports that the European gambling industry’s profits for the past year 2020 were €98.6bn. This is 23% less than in 2019.
The illegal gambling market also declined in 2020. Whereas in 2019 it represented 26.5% of the global gambling industry, in 2020 it was 23.4%.
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