Betting had always been a part of the human history. It may be safe to say that from the moment money way invented, man started gambling. I mean, from the days of wagering nickels and copper over certain ancient sports down to this modern era of online betting sites, man had always found a way to gamble. Now it is important to note that betting was somehow a part of the culture of people of the old.
For instance, a young lad would hunt some animals in the woods, sell them to buyers and very likely use part of the proceeds to wager with his peers. Tis may not be very popular for the young men of old but it was a stable activity for the old. Taverns where countrymen and travelers drink had a reputation for being a place where gambler slug it out with their money. This may in fact shed light on the earliest origin of what happens in Vegas.
Who builds a casino without building or at least adding a bar for alcoholic alcohol? No one. At least no smart entrepreneur would make that mistake. But this could be another article for another day and another blog. In this blog post, we will be looking at how the economy affects.
The Good Times
Generally, people often never admit that there are good times in the economy. People will always say that economic times are difficult and all that but the truth is this: there are some times that we can generally call good times. It is common sense that the global economy was way better in 2006 compared to 2008-2009 when the stock market took a nose dive and crashed in consequential proportions.
But whatever the economic conditions looks like, you can expect two outcomes: the people who will be more willing to bet on sports and the people who not be willing to do the same. For the sake of this article, we will name them optimists and pessimists. Their decisions will determine whether bookmakers make a lot of profits or not. Also, these decisions will determine whether they make a ton of money or not. Let us start with the optimists when the economy is great.
Think about it. The economy is doing, great or fine or not bad (in the least) and there is still a decent level of cashflow in the society. Would people still want to bet? Perhaps there is no need for betting as things are moving just great. How about using the extra income to gamble in the hopes of growing that fortune?
Optimists will bet. Period. The truth is: optimists place bets irrespective of the prevailing economic situation. Whether the stock markets crash completely or internet access (data) becomes three times more expensive than usual, optimists will bet online, still. I am not talking about the young lads and old folks that are addicted to gambling.
Their Logic: In times of financial abundance, the optimistic punter believes he has extra cash to invest in sports through betting. In fact, most career punters will double or triple their betting budgets if they have extra cash to spare. Unlike people who do not bet at all or individuals who bet part-time, fulltime optimistic punters will only place better sums when they bet. Usually, they focus on choosing one or a few games and putting a lot of money in there as opposed to staking a little amount but choosing way too many games or outcomes.
In times of financial abundance or balance, punters who aren’t fully into sports betting are likely going to see less needs for placing bets. The ones who love sports and betting may stake a little amount of money here or there but they often do not inject a lot of money into the betting economy as they feel financially comfortable enough to do just fine with what they are currently earning.
Their Logic: “Things are moving just well and there is no immediate financial crisis. Why would I risk placing huge bets online? What if I lose? Is it worth placing any bets at all since I already know that things are moving just fine?” Thoughts and questions like this dominate the heart of the punter who had always been a pessimist at the fundamental level. It goes without saying that pessimists see little to no reason to gamble when there is enough money in their pockets and a lot of time to make more.
The Bad Times
Nothing lasts forever. Even good things must come to an end at some points. Same for bad times too. But let’s think about it. The Corona Virus Diseases aptly named the COVID-19 has been on a roll for well over 2 months now. Almost every independent country of the world has its fair share of infections and in some cases, deaths. Businesses are shutting down and people are being forced to stay indoors in many cities across the globe as it is hoped this move will stall the spread of the virus.
But how does this affect economic activities? Simple. The world’s economy heavily relies on two things: buying and selling. Technologies of several millennia may have changed how we do business but the fundamental philosophy remains the same. If people do not interact with each other in ways that are economically relevant, money will not flow smoothly and the economy will suffer.
As anyone can guess, it is the internet based businesses that are faring well in this challenging time. Freelancers are having a field day if we compare them to their counterparts who work in brick and mortar establishments. Content creators, influencers and webpreneurs as a whole are to an extent not affected by what’s going on in the world’s economy as we speak.
But are bettors affected? If so, how? If not, why? How does the entire saga affect punters and betting sites or bookmakers? Let’s get down to it below.
The will continue to bet. Like I had already stated in a previous paragraph, economic times do not affect a punter’s desire or willingness to gamble. It only affects the amount of money he can afford to play with. But beyond their desire to continue gaming, they often do it believing there will be a light at the end of the tunnel. For instance – and this is one of those unpopular betting tips out there – bookmakers are more likely to motivate bettors in times of general despair (as many people won’t be eager to place bets) than in normal times when more people will be willing to bet on games on their sites. But, for the optimists, why would they keep betting even when dark clouds are brewing?
Their Logic: The odds are higher where and when people are not overly excited about placing their money. If you pay attention on bookmaker sites, you will realize that outcomes that are very uncertain or unlikely to happen often get the highest odds. The same thing applies to harsh economic times like the one the world I facing. As expected, odds will be generally higher. The more the global economy suffers, the higher the odds available on these sites. Devoted punters (especially the ones who already have a decent amount of money they currently use for betting) are really going to capitalize on these weird opportunities.
They will stay far away from betting and anything that remotely looks like it. The fear of losing a bet is such a great obstacle for pessimistic bettors. However, the fear of losing a bet (and, of course money) at such a critical time like now is one that they’d typically consider unthinkable. “How would I cope if my I fail to win? I’ve got bills to pay and cannot currently afford to risk any money on betting” He assumes.
Their Logic: They have nothing to fall back to in the event that the bet(s) they place fail to work out just fine. Another common logic would be that since things aren’t generally great, then betting would not have much to offer in terms of profits. This reasoning is incorrect but is very understandable. Another factor could be the fear that I they win huge sums of money, it is possible that the bookmakers may not be able or willing to payout winnings if they are broke. Or worse, they could wind up operations with bets placed!
In a Nutshell
At all times, global economic conditions affect the sports betting industry. People are generally more willing than usual to place bets when they know that if they lose their money, they have something to fall back on. As already stated, above, the optimists will bet a lot when the economy is doing fine. They will still do the same when times are hard but with less money. Pessimists will attempt to earn through betting or doing it part-time. Some will do it full-time but betting with very minimal sums. However, they almost don’t bet at challenging time. Generally, at trying times, the desire to bet on sports both online and offline isn’t exactly great.