US betting operators ponder coronavirus contingency plans
Sporting calendar decimated as major events cancelled in an effort to curb spread of Covid-19
Betting operators are debating how to minimize the fallout of almost all professional and college sports competitions in the US being cancelled due to the coronavirus outbreak.
To curb the spread of Covid-19 the majority of US sports leagues have suspended or postponed upcoming events, resulting in a significant loss of business for betting operators in the US.
The NBA was the first to initiate the policy on Wednesday after a player tested positive for the virus.
The NHL, MLS, PGA Tour and National Lacrosse League have halted all upcoming games. The NCAA also cancelled its March Madness tournament, the biggest betting event in the US.
PointsBet has said it will refund all future bets that have already been placed, while FanDuel was quick to refund bettors from Wednesday night’s final NBA games with site credit.
Operators are still largely uncertain on how they will deal with the fallout and are in the process of compiling customer emails.
Kindred said it was too early to determine what the financial implication of the coronavirus pandemic would be, and expected to offer more details in its Q1 financials in April.
“We are fortunate to be a digital business and we are therefore confident that we can implement necessary adjustments with minimal disruption to our operations.,” the firm said.
PointsBet communications director Patrick Eichner told EGR NA: “We are taking the wait-and-see approach on the NBA and other professional sports leagues, as we’re waiting for a definitive statement as to whether or not the remainder of the respective regular seasons will be played.
“That will help shape our decision moving forward, though it is safe to say that all futures bets for things like NBA season win totals will be refunded,” Eichner said.
A DraftKings statement on the issue said: “While there might be changes in the sports calendar, which may have an impact on our business, there won’t be any changes to DraftKings’ commitment to deliver the most engaging and innovative experience for our loyal customers.”
Data provider Sportradar said: “We remain extremely vigilant to the impact coronavirus is having on the sporting calendar. [and] we understand that this is a challenging time for businesses and we remain committed to working through this together with our customers and partners.”
The lack of betting markets has forced the Chicago-based Argosy Casino Alton’s sportsbook to postpone its launch after Illinois formally legalized betting this week.