Why the cancellation of the IPL will have a Big Impact on Gambling Companies
Gambling companies were celebrating when it was decided that the IPL would go ahead this year. They knew that fans would be waiting to place money on their favourite players and teams. They were proven right as people flocked to online betting and fantasy sports sites.
However, the good news did not last long as the 14th season of the IPL was suspended indefinitely following an outbreak of COVID-19 amongst players and support staff. This decision could be devastating for gambling companies. We spoke to a representative from JustGamblers who estimated profits could be slashed by 10x as a result. That’s a major financial impact.
Why the postponement is such bad news for gambling companies
When you consider that the audience of 405 million for last year’s IPL was a record, you can start to see why gambling companies will miss out on significant revenue as a result of its postponement. Of course, not everyone who watches the IPL places a bet but many people do.
So, the decision to postpone the event is likely to be extremely costly to gambling and fantasy sports companies in India and across the world. These companies are not the only ones to miss out financially either.
Other financial impacts of the suspension
One of the biggest financial impacts of the suspension is likely to be on the league’s official broadcaster Star India. They had lined up 18 sponsors and more than 100 advertisers for the event. The broadcaster had also raised its ad slot rates from ₹11-12 lakh per 10-seconds last year to ₹13 lakh this year.
Star India made a statement supporting the decision to postpone the IPL for health reasons. However, the company will still not relish the results of the decision. Experts suggest they are likely to lose nearly ₹2,000 crore.
IPL team franchises are also set to lose out financially. This will mainly be due to losing short-term digital deals that they have signed with brands. These deals will be lost even if the postponement is short-term.
The worst case scenario for all concerned is if the IPL is cancelled altogether for this year. If this decision is made, broadcasters, team franchises and gambling companies will all suffer losses that they will take time to recover from.
Of course, everyone understands that the main concern has to be protecting the health of the country. As long as COVID-19 is so prevalent in India it’s unlikely that live sport action like the IPL will return. Although there is no way to avoid this happening, the loss will have an impact on the atmosphere in a country where sport, especially cricket, is so important. This is besides the huge financial impact that we have spoken about in this article.
It remains to be seen what will happen with the future of the IPL this year. Gambling companies will be hoping that it can return at some point, but only if this can happen safely.
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