MGA forecasts 12% drop in gaming revenue for 2020

28 May 2020

The Malta Gaming Authority (MGA) has revealed that it anticipates B2C gross gaming revenue for 2020 to fall 12% below initial forecasts as a result of disruption caused by novel coronavirus (Covid-19).

The regulator conducted a survey of its online licensees in April this year to assess the impact of the pandemic, covering the effects of the crisis on revenue, operating costs and investments. Licensees were also polled on key industry concerns, and mitigating actions taken by operators.

With sporting events around the world suspended as a result of Covid-19, and only now beginning to resume, the B2C sector is naturally expected to be the worst hit, in particularly Type 2 games, which include sports betting.

Revenue for Type 2 licensees is now expected to fall 40% below the MGA’s initial 2020 projections. Games covered by Type 1 licences, such as table games, lotteries, and virtual sports, are said to have seen a rise in revenue, but not at a rate that offsets the Type 2 decline.

Based on responses from B2B licence holders, revenue is expected to fall 20% below projections.  Furthermore, as many as 38% of those surveyed have opted to postpone planned investments, due to the uncertainty caused by the pandemic.

Those active in both B2C and B2B fields are also predicting a 20% decline in revenue for the year, with around 66% of these businesses postponing investment plans.