In 2020, a number of events took place that negatively affected the betting business in the CIS countries. They led to a rapid drop in traffic, and the bookmaker companies suffered critical financial losses.
For business, of course, they could not become invisible:
- shutdown of the ground sector;
- increase in targeted deductions;
- prohibition of betting on non-sporting events.
Despite the tough environment, the industry has shown a high degree of adaptability. Bookmakers managed to "survive" and are now rapidly recovering. However, there are a number of factors that can stall this recovery and, for some companies, become an insurmountable obstacle.
World Cup games will be held in Latvia
It was decided to postpone the games of the world championship planned earlier in Belarus due to the unstable political situation in Latvia. It is safe to say that this will hit the bookmaker companies in Belarus. It is not yet known exactly what problems await bookmakers, but online excitement will suffer less, since players will be able to make legal bets on foreign matches of the hockey championship.
Bookmaker revenues will fall
In the fall of this year, the law on the Unified Gambling Regulator and an increase in the volume of targeted deductions will gain force. The quarterly deductions for the bookmaker will double, and you will have to pay three times more from the total volume of bets. The market will become unfriendly to new operators, and the small and medium-sized business segment will be threatened with extinction. Only large companies that are already firmly on their feet can stay afloat. This will lead to less competition. To prevent events from going according to such a scenario, you will either have to cut the odds or abandon sponsorship contracts with clubs and federations.
Funding for bonus programs will decrease
The increase in targeted deductions will force many companies to revise their bonus programs and significantly cut funding for them in order to maintain profitability.
Bonus programs are a proven and effective way to attract new customers. An example is the free bet – a new player gets the opportunity to place a bet for free, and if he wins, withdraw real money. Bookmaker companies take financial costs on themselves, and they can pay off with interest if the player becomes their regular customer. As a rule, bookmakers spend 15% of their profits to maintain bonus programs. Now some companies will be forced to refuse some of the promotional offers.