Early launch of COVID-19 vaccine likely to create dent in shares of gambling industry

imagesource:gamblinginsider
imagesource:gamblinginsider

As unsettling it may sound, however truth remains that the biggest winners during lockdown phase due to COVID-19 have been gambling companies.

When the world was almost on a pause mode due to sudden onset of corona virus, the nations had no choice but to call for nation-wide lockdown in their respective countries in order to fight the pandemic.

The people switched to online gambling games and applications to fight the boredom. However, this turned out to be boon for gambling and casino sector as it resulted in record high revenues for them.

However, the news of early arrival of effective COVID-19 vaccine has left the shares of gambling sector rattled up.

The possibility that the world may normalize like before in next 6-12 months has created a dent in shares of gambling companies.

The online traffic might reduce resulting in downsizing of revenues for the companies.

This was evident when share prices of Flutter Entertainment and GVC Holdings, parent companies of PokerStars and Partypoker respectively, both dropped considerably, reported High Stakes Database.

The casinos that are largely dependent on their land based casinos for revenue increased their share prices considering the possibility of effective vaccine and returning of people to physical gambling activities.

The shares though have fallen but no substantial loss appears to have been taken effect considering the record high revenues earned by the gambling companies since March 2020.