The global iGaming market is projected to breach the $160 billion mark by 2030. And Europe is at the forefront of this race. Online gambling is one of the most profitable industries today, with an average CAGR of 11.4%. According to a new report by Fortune Business Insights, the market is on a steady growth curve.
The global coronavirus outbreak forced most federal governments to introduce strict social distancing protocols. As brick-and-mortar casinos and sportsbooks stayed shut for a major part of 2020, online gambling quickly took over. And this trend was visible in regulated markets like Europe and North America.
The iGaming market today is split into several sections like online casino, poker, sports betting, bingo, and lottery, to name a few. And Europe happens to be one of the largest gambling markets in 2021. This trend is projected to continue in the future as several heavy investments from sports enthusiasts are on the cards.
Europe’s healthy gambling culture is partly responsible for bolstering the prospects of the regional industry. The rise of cryptocurrency is also responsible for the growth to some extent, as blockchain tokens are viewed as a safer alternative to fiat currencies.
Key Factors Behind Europe’s Emerging iGaming Industry
Apart from several investments and key infrastructure projects, the rising demand for online sportsbooks is responsible for the explosion in Europe’s iGaming industry. With an estimated growth of 9.20%, the market will be worth well above $40 million by 2025. It was worth $30.92 billion in 2020, for reference.
Rising Gambling Revenue
Europe’s gambling industry currently generates $34.5 billion, which means the average per capita expense per gambler is $72.33 annually. This confirms the hypothesis that Europeans are far more prone to gambling than their American counterparts. Strict gambling regulations are partly responsible for the greater demand, as the laws prevent unscrupulous companies from duping unsuspecting customers.
Massive Demand for Online Sportsbooks
Sports betting was traditionally popular in most parts of Europe, and this trend won’t disappear anytime soon. For instance, horse racing and football are extremely popular in the EU, and sportsbooks run a brisk business during major tournaments and Tier II competitions. The European sports betting industry is diverse, and a huge variety of betting options draws new players to the game. Moreover, the number of daily bettors increased by over 50% over the past several years.
Since gambling is legal in most European countries, punters have access to a wide variety of perks. Hence, unregulated casinos aren’t popular among regular bettors as they’re viewed as a risker proposition. Federal governments retain a monopoly on online gambling in some parts of Europe. Thus, limiting the choices as far as providers are concerned, although member states can frame individual regulations, the rules must comply with EU norms. Hence, platforms licensed by reputed regulatory authorities like the MGA or UKGC enjoy an uninterrupted run throughout Europe.
A Leader in Digital Entertainment
Europe is home to one of the biggest online gambling markets in the world, and the punters aren’t afraid of change. A long and largely peaceful history of gambling, strict laws, lack of taxes, and other factors favour growth in the iGaming sector. These factors combined have helped Europe support a booming online gambling industry.
Predictions for the Future
Technologies like VR, IoT, and blockchain are poised to reinvigorate the iGaming industry while mobile gambling is quickly gaining ground. As the number of smartphone users is far greater than desktop and laptop users, online casinos are adapting to change. And judging by past surveys, the demand for mobile casinos have exploded over the past couple of years.
This trend will affect Europe’s online gambling market, which is already growing at a steady pace. As more people grow aware of licensed gambling activities, the revenue will only increase. Smartphone use is growing at 7% CAGR, which will further boost the demand for mobile casinos and sportsbooks.