Online gambling market in Europe in 2024
The online gambling market in Europe is growing steadily, a momentum that is based on the culture of Europeans’ inclination towards this form of entertainment, the increase in the number of European countries that grant licences to conduct such activities but, unfortunately, also the restrictions and limitations of all kinds of land-based betting operations in physical, street-based locations.
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Current status of the European online betting market
Europe has a well-established, and still growing, online sports betting market, with online sports betting revenues expected to reach $17.14 billion in 2024. Europe has a tradition in this area and it shows. Even though the EU has left it up to each country to decide in its own way what it intends to do with the industry, European authorities are not indifferent if some member states try to restrict this activity to attract votes in a populist way. The EU Charter of Fundamental Rights states very clearly that citizens of the European Union have the Freedom to conduct a business, Everyone has the right to own, use, dispose of and bequeath property that he or she has lawfully acquired and that All persons are equal before the law. Also, any changes to the laws governing this area must first be notified to the European Commission and then implemented.
However, the regulatory environment on the old continent provides a stable basis for continued growth.
Future projections for the European gambling market
Statista says the size of the online gambling market in Europe is estimated at $46 billion in 2024 and is expected to reach $58 billion by 2029, growing at an average annual rate of 4.43% between 2024 and 2029. While the European online sports betting market is expected to reach $21.84 billion by 2029, growing at a rate of 4.97%, with the player base gradually reaching 45.2 million.
Why online gambling will grow in Europe in the next 5 years
The European online gambling and betting market is poised for significant growth in the near future, thanks to several key opportunities such as:
– Increased internet penetration in Europe, including in rural areas. More and more people will become customers of online gambling operators.
– Increasing signal and territorial coverage of mobile telecom companies. This will mean more people will gamble on mobile devices and not have to wait for a desktop device. In addition, more and more, if not all, online gambling companies will develop powerful interfaces on their websites for a better consumer experience of this kind of entertainment. On the other hand, many will develop apps to be downloaded from various app stores to increase the level of service offered to gamers and again increase the gaming experience for people.
– Increased marketing and advertising volumes and sponsorship of various sports competitions by various online betting operators. This will also increase the level of acceptance of online betting brands among society.
– Last but not least, it is expected to increase the flexibility of European governments in relation to this form of entertainment through better regulation, an increase in the number of licences granted to the various operators and more effective involvement of the various national bodies in responsible gambling issues in order to protect the players most at risk of pathological gambling. European countries, such as Romania, which approach this business in a populist manner will lose out.
Challenges in the European gambling market
Illegal online gambling market
The illegal online gambling market is around the corner and any bad regulation is immediately blamed by those promoting the black market. This challenge is detrimental both to the level of budget revenue, but more importantly to the people who choose to gamble on such sites. When do illegal sites gain momentum? Especially when the authorities in a country overtax the field or do it at too fast a pace without giving operators time to get used to the new regulations, or especially when they choose the worst option, i.e. banning this form of entertainment.
Fraud
Cybersecurity is one of the main concerns for operators in the European online gambling industry, as it is the main cause of losses.
Money laundering
Another challenge is customer awareness and the countless attempts by individuals to launder money through online gambling operators’ customer accounts. The implementation of the various AML regulations continues to give operators a headache.
False identity
One of the most common challenges is people trying to play but not being old enough. They resort to false identity by providing customer service employees with false documents.
Bonus Inflation
Finally, I would like to mention another challenge of an operational nature, namely the bombardment of bonuses that operators are offering to players, either to build loyalty or to attract customers to their site. I think marketers’ imaginations should be put to work to find new ways to get customers to enjoy their sites.
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In conclusion, the European online gambling market is growing, and if it finds solutions to solve, even partially, some of the challenges outlined above, it will only benefit.
Sources: casinoencyclopedia.com, awisee.com, statista.com
