Europe’s Evolving iGaming Landscape: Challenges and Opportunities for Growth
The European iGaming industry is undergoing significant change as local jurisdictions increasingly regulate online gambling markets. This trend presents challenges for operators but also opens the door to substantial opportunities, according to Charmaine Hogan, Playtech’s Head of Regulatory Affairs.
“Emerging European markets present significant growth opportunities for iGaming companies as they transition to a licensing regulatory model,” Hogan said.
Market Snapshot
The global iGaming market is projected to generate nearly USD 150 billion in gross win by 2024, with an annual growth rate of 10.7%. By 2029, it could reach almost USD 250 billion. Europe accounts for approximately 40% of the global market, and its share is expected to grow as more jurisdictions legalise and regulate online gambling.
While most European countries have introduced regulations, black-market operators persist in some areas, creating challenges for licensed businesses.
Regulatory Challenges
Regulation brings benefits such as safer gambling practices, data protection, and tax revenues. However, operators face higher operational costs, including licensing fees, taxation, and technical requirements that vary by country.
Hogan noted, “High tax burdens, which can include multiple types of taxes, put pressure on profit margins and can lead to reduced investments or even operators exiting a jurisdiction.”
Strict advertising limitations in countries like Italy and Spain further complicate customer acquisition strategies, requiring operators to explore alternative marketing channels and focus on retention through personalised marketing and loyalty programs.
Adapting to a Competitive Environment
Despite these hurdles, the shift towards regulation offers opportunities for operators to build trust with players, align with local stakeholders, and invest in sustainable market presence. Hogan emphasised the importance of engaging early with regulators and adopting innovative strategies to navigate compliance challenges.
“Early compliance preparation is crucial to avoid pitfalls in a new market. Building a strong brand and engaging in educational campaigns can help establish trust and credibility with new customers,” she explained.
Certain product verticals, such as live casino, esports, and virtual sports, remain underdeveloped in some regulated markets. Hogan views these gaps as opportunities, urging operators to diversify their offerings and cater to evolving customer preferences driven by mobile and app-based platforms.
Toward Greater Harmonisation
Hogan advocates for more alignment across European regulatory frameworks, particularly regarding player protection standards and technical requirements.
“While there has never been consensus for an EU-wide framework, harmonising technical requirements, such as certifications, audits, and reporting standards, would also be beneficial,” she noted.
As the European iGaming market continues to grow and evolve, operators must navigate complex regulatory landscapes while seizing opportunities for innovation and expansion. Collaborative efforts between regulators and industry stakeholders can drive long-term sustainability, making Europe a promising hub for the future of iGaming.
