MGA survey: licensed B2C operators' revenue down 40% amid Covid-19
B2C and B2B MGA licence holders lay out Covid-19 impacts in MGA survey as two-thirds say they will halt all 2020 investments
Maltese-licensed sports betting operators are facing a 40% drop in annual projected revenue for 2020, according to the latest research conducted by the Malta Gaming Authority (MGA).
A survey conducted by the MGA’s Information and Research unit in April found B2C licence holders exposed to Type 2 gaming were anticipating a revenue decrease of 40% due to the sports shutdown caused by the coronavirus outbreak.
The Covid-19 Business Impact Survey covered 151 B2C operators in total with aggregate gaming revenue forecasted to fall by 12% in 2020.
Several different areas were examined in the research, including the impact of the Covid-19 pandemic on gross gaming revenue, operating costs and investments. It also focused on the industry concerns and actions taken by operators during this pandemic.
The survey also covered 64 B2B licence holders, with those firms revealing revenue expectations of 20% lower than previous estimates due to Covid-19.
Just over one third of surveyed B2B licence holders (35%) said they were planning to postpone their 2020 investment plans while 66% of operators who hold both B2C and B2B licences are halting their investments for the year.
In a statement, the MGA noted how the industry was not “immune” to Covid-19 and that it would continue to exercise future surveys to assess the impact on its affiliated firms.
“The results show that the worst hit sector is projected to be the B2C sector, in particular the operators exposed to Type 2 game types. Most of the operators are considering postponing investment plans for a later date, subject to a notable degree of uncertainty,” the MGA said in a statement.
“The MGA will continue following closely the impact of the Covid-19 pandemic and further surveys aimed as assessing other impacts will also be conducted,” the MGA added.