Is Online Gambling the Real World Cup Winner?

Posted by Harry Kane on Monday, August 6, 2018

For a while in Russia, it looked as though England were going to reach their first World Cup final for 52 years. As fans’ expectations grew and the strains of Football’s Coming Home resonated through the charts once again, the likelihood that Jordan Henderson would lift the coveted World Cup aloft grew with every passing game.

Ultimately, it was not to be, however, with Croatia ending England’s chances at the Luzhniki Stadium in Moscow.

Even if England had lifted the trophy, however, it’s arguable that the real winner of the 21st World Cup would have been online gambling (particularly in the UK). We’ll explore this fascinating concept in the post below, while asking how one of the world’s premier sporting tournaments has boosted this growth marketplace.

A Marriage Made in Heaven? The Union Between Sport and Gambling

In truth, the relationship between sport and online gambling has always been an inherently close one on these shores.

This is particularly true in the case of football, which has become increasingly immersed in the virtual casino space and now derives a great deal of additional revenue from this marketplace.

In fact, online gambling accounts for more than 40% of income from perimeter sales in the Football League, while almost half of all shirt sponsorships in the EPL are provided by casino brands.

Overall, the brand count across football totals more than 50 in the UK, which is the single highest number from any sector in the modern age.

We must also consider the lucrative nature of UK’s online gambling market, which has grown at a far quicker and more consistent rate than its continental rivals during the last decade. This has created total online and mobile revenues of $5.8 billion per annum, while establishing Britain as a global market leader ahead of Italy, France and Germany.

To provide some context, Italy and France generate virtual gaming revenues of just $1.1 billion each year, while these markets are also restricted by a number of stringent regulatory measures.

With these points in mind, it should come as no surprise that Brits wagered an estimated £2.5 billion during the World Cup, with data published by the London Times revealing a 50% increase on the previous tournament. This equates the same sum spent on drink, food and merchandise combined during the tournament, with this level of activity boosted considerably by England’s unexpected run to the latter stages of the tournament.

Why Does the World Cup Provide Such a Boost to the Industry?

These facts and insights leave us with two clear takeaways.

Firstly, it’s clear that football and online gambling have a close affinity, and one that has driven deeper integration over a sustained period of time. This has certainly helped to popularise gambling among sports fans in a natural and nonintrusive manner, contributing to a lucrative market that continues to grow at an incredible rate.

Secondly, we can see that the prevailing level of gambling activity increases dramatically during major tournaments, thanks largely to the relationship that currently exists and the relatively accessible nature of the UK marketplace.

Advertising also plays a significant role during major tournaments, with all 64 matches of the 2018 World Cup televised live on terrestrial television. ITV carried approximately half of these matches, and this provided a tremendous opportunity for online casino operators to promote their brands to a mass audience and often at peak times.

Under the terms of an existing agreement, gambling commercials can only be shown after the 21:00 watershed, but there is an exemption for live sporting events. This is a loophole that operators have been quick to utilise in the past, with research from the Victoria Derbyshire show at the end of 2017 revealing that 95% of all television ad breaks during UK football matches featured at least one gambling message.

If anything, the number of published gambling messages appears to have increased, with research confirming that nearly every ad break during ITV-screened games during the World Cup contained gambling messages. Some breaks even included two sponsored advertisements, with even operators raising concerns over the frequency at which messages were shown.

UK operators were simply looking to compete with their rivals while remaining within the boundaries of the existing legislation, however, and this undoubtedly had a significant bearing on the amount wagered during the tournament.

Interestingly, the spike in gambling activity came despite a decline in brand engagement through social media, with sponsorship analytics firm Hookit revealing that not a single online casino operator featured among the most engaging firms during the World Cup.

This perhaps tells us more about the unique relationship between established casino brands and their customers, however, particularly during major tournaments. More specifically, a sharp increase in demand means that punters are more likely to respond to an ad by placing a bet rather than interacting further with the associated brand, which in turn has compelled operators to spend more on television advertising than social or digital channels.

The Bottom Line – Does this Boom Include Casino Gameplay?

When talking about rising gambling activity during the World Cup, it’s only natural to assume that this applies predominantly to sports betting.

However, there’s no doubt that virtual casino gameplay will also have benefitted from greater demand during the World Cup, and there are a couple of reasons for this.

Firstly, a large number of sports betting operators (think of Ladbrokes or William Hill, for example), have diversified into casino gameplay in recent times, creating a significant cross over between the two markets.

So, when customers are directed to place a wager on the latest World Cup match, they’re also presented with instant access to a wealth of virtual casino games including slot, blackjack and roulette iterations.

As a result of this, operators are able to target a new and slightly more diverse audience, helping them to optimise their marketing spend while continuing to grow their customer base.

Ultimately, there’s little doubt that online gambling was the real winner during the World Cup, particularly in progressive and established markets like the UK. The question that remains is whether this is sustainable, however, particularly with regulators coming under increased pressure and likely to act ahead of the 2020 European Championships.