European Online Gambling Growth is an Industry Game Changer

Revenue statistics show that Europe’s gambling market grew by 7.5% during 2021. According to the data released by the European Gaming & Betting Association and H2 Gambling Capital, the industry is slowly but surely recovering from pandemic inflicted losses. Most of the revenue boost comes from igaming and compared to pre-pandemic figures, the total gambling market is still down by 13%.

The promising increase in the gross gaming revenue (GGR) for Europe covers EU-27 and UK markets. Regulated markets on the continent allowed for growth in the online segments as gamblers moved toward online providers while land-based casinos kept their doors closed. Predictions indicate remote gambling will account for close to half of GGR in the next 5 years.

With more European regulators coming onboard and the UK Gambling Commission striving toward the best-regulated igaming market, a greater section of online gamblers enjoys local wagers. Some still prefer offshore platforms regardless of better protection at local providers, and Malta seems to remain a firm favourite for foreigners.

 Remote Wagers Boost European Gambling Revenue

The total GGR for Europe’s gambling sector during 2021 reached €87.2 billion and the end-of-year report from EGBA indicates the online industry accounted for €36.4 billion, a 19% increase from the previous period. Land-based gambling activity suffered greatly from lock-down closures and restrictions once they could open their doors.

Although land-based gambling experienced an increase in GGR of 0.4% from the previous year, it is still 32% lower than figures from 2019, prior to Covid-19 restrictions. These limitations continue to push punters toward online platforms. The report predicts steady growth for both online and land-based gambling, with marginal growth for the latter and continued accelerated growth for online verticals.

Mobile sports betting gained tremendous popularity as 50.5% Europeans placed online bets via their phones and tablets. Experts believe this new trend will continue and the rise of mobile betting could reach a majority share of 61.5% by 2026.

 Online Gambling Regulation Success in Europe

The regulated online gambling sector continues to grow globally, and Europe has some of the strongest regions in the industry. Onshore market channelling increased with countries like The Netherlands and Germany launching their local regulated markets. EGBA’s report shows that 82.7% of all online gambling revenue in Europe comes from regulated and licensed gambling.

Despite continuous changes in the regulated online market, with Sweden enforcing temporary caps and the UK in a continued reform, punters prefer the security of licensed sites. Being one of the most trusted offshore providers, Maltese gaming revenues account for 12% of their GDP and casinos licensed with MGA remains a favourite around the world.

EGBA members include bet365, Betsson, Entain, Flutter, Kindred Group, and William Hill and the revenues from these operators throughout Europe accounts for 36% of all online activity. Germany continues to work on their Interstate Gambling Treaty for better regulations, but regions like Cyprus and Norway still have a way to go before they make a noteworthy impact on the regulated industry. The report ascribes the majority of the increased channelisation toward regulated sites to the Netherlands’ successful launch of its online market.

 Growth Predictions

H2 Gambling Capital and EGBA predict that gambling revenues should reach a breath-taking €126.3 billion in the next 5 years. According to the data, online gambling will account for €52 billion of this. While the industry continues to recover from pandemic restrictions, predictions show that GGR for 2022 could end at €70.5 billion for land-based gambling and €39.1 billion for the online segment.