Why YoY casino & poker revenues slumped in Q2 and why it made sense

In recent weeks, the global iGaming industry has been bolstered by the release of several of the most prominent companies’ financial reports for H1 and Q2 of 2021, displaying practically unprecedented continued success a year from the onset of the pandemic.

However, one notable area where several companies fell short according to their reports was in terms of casino and poker betting verticals, with several companies having recorded decreased year-on-year revenue in the sectors.

Amongst others, Malta-based Betsson Group reported that revenue in its casino segment was down five per cent compared to the same quarter a year before, even as sportsbetting was up an astronomical 125 per cent.

Similarly, Kindred Group reported revenue in its poker segment was down by seven percent in Q2 2021 compared to Q2 2020.

This was the same for London Stock Exchange-listed iGaming titan 888, which found that year-on-year betting revenue from its poker and bingo vertical was also down.

These anachronistic declines are stark against increases in other sectors, but do not represent an overall declining trend.

Instead, they are due to the comparison with Q2 of 2020, when, as many of the most popular sports events for bettors were canceled, customers turned to other segments to replace them.

As such, revenues in the quarter in those areas were suddenly significantly higher.

At Kindred, poker revenue more than doubled in Q2 of 2020, with gross betting revenue climbing by a dramatic 111 per cent compared to the same quarter a year before, as sports betting declined by 38 per cent.

Likewise, at Betsson casino revenue was up significantly, hitting 40 per cent higher than it was during the same quarter a year before.

888 also reported a major upturn in Poker and Bingo revenue during the quarter.

As sports events resume with pandemic restrictions slowly being lifted though, bettors have returned to their preferred format, as is reflected in the fact that year-on-year quarterly sportsbook revenue was significantly higher.

Compared to the same quarter in 2019, poker and casino revenues were still generally higher in Q2 2021.

This increase was particularly pronounced at Kindred Group, where poker revenue hit £7.5 million in Q2, a major increase on the £4.6 million reported in the same quarter two years earlier, though this can also be noticed at Betsson and 888.