Growth of Online Gambling in Europe Amid Challenges and Concerns

As the European gambling market continues its upward trajectory, both sports betting and lotteries are anticipated to experience the most significant online growth through 2029. According to projections, the regulated European gambling market is set to reach €137 billion in gross gaming revenue by 2024, with online gambling contributing 40% (€55 billion) of this total.

This marks an approximate 4.58% increase in the overall gambling market, alongside a notable growth of 7.84% in online gambling between 2023 and 2024, as reported by H2 Gambling Capital. The figures from 2023 indicate that the total gambling revenue stood at €131 billion, with online gambling accounting for 39% (€51 billion) of that figure. The substantial increase in digital revenues can be attributed to the COVID-19 pandemic, which resulted in the closure of physical casinos.

In 2024, the revenues generated by different segments of the gambling market are projected as follows: lotteries at €38 billion, sports betting at €33 billion, casinos at €30 billion, and gaming machines at €26 billion. Sports betting has gained immense popularity among Europeans, with major sporting events such as the European Football Championship and the World Cup significantly boosting online betting activities.

Both sports betting and lotteries are expected to showcase the strongest online growth rates through 2029, with compound annual growth rates of 8.6% and 8.4%, respectively. However, while gambling serves as a popular form of entertainment, it also poses risks of addiction. Problem gambling and, in severe cases, gambling addiction, can affect some individuals. A 2022 study by the European Gaming and Betting Association (EGBA) revealed that problem gambling rates in Europe range from 0.3% in Ireland to 6.4% in Latvia.

In Portugal, alarming data from a gambling helpline indicated a sharp increase in individuals reporting online gambling addiction, with requests rising from 39.58% to 48% between 2023 and 2024. To combat these issues, EGBA members have voluntarily contributed over €140 million over the last four years to support gambling harm prevention initiatives across Europe, including €61 million in 2023. “Player protection is an ongoing journey – there’s always room for innovation and improvement, and our members are committed to continuously improving their approach to safer gambling,” stated Maarten Haijer, Secretary General of EGBA.

The gambling industry is also grappling with challenges posed by competition from black market websites and apps based outside the EU. “These platforms do not comply with the player safeguards we have in Europe, and do not pay any taxes here either,” noted Barry Magee, senior communications manager from EGBA. H2 Gambling Capital estimates that 21% of Europe’s total online gambling activity occurred outside the regulated environment in 2023, suggesting that the unregulated market could be equivalent to approximately €13 billion in gross gaming revenue.

Magee emphasized, “While stronger enforcement against non-EU based black market operators is crucial, the most effective approach is to ensure the regulated gambling environment in Europe is attractive to its players, thereby reducing the incentive for players to seek out unregulated platforms.”

By fLEXI tEAM