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How will Europe’s iGaming industry look in 2023?

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The popularity of iGaming in Europe has been skyrocketing for a while now,  and interested parties from different parts of the world continue commenting on this notable growth. The iGaming industry is getting massive proportions on the continent, and the European gambling market now accounts for 49% of the worldwide market. As the interest in wagering develops in almost all parts of the area, it is reasonable to predict further growth in the following months. That is why we prepared this extensive guide that will help you understand the expected state of Europe’s iGaming industry in 2023.

The State of iGaming in Europe

Online gambling is not explicitly prohibited in any law of the European Union, and most countries have quite lenient regulations, whether they are part of the EU or not. UK, for example, is known for reasonable rules that significantly boost the industry’s growth. Since the countries in the area allow businesses to operate freely, as long as they hold proper licensing, individual governments are also thriving thanks to the positive effect of digital gaming on the overall income in each territory. In 2021, there were 125 million active players on the continent, and the online gambling market made 21.1 billion euros in the same year, and it is expected to reach 52.2 billion euros by 2027. 

The Biggest Markets on the Continent

As we’re diving into the industry size on the continent, it is also important to note the individual markets that play an important role in the overall development of the gambling sector in Europe:

Ireland

The Irish adore gaming of all kinds, and in 2022, the overall spending on online gaming in the country reached 536 million euros, including the games people buy for their children. The country’s digital gaming market is dominated by men, as they twice as much money on this type of entertainment as women do. The Irish are particularly passionate about web-based gambling, and thanks to the government's efforts to keep the world of online casinos in Ireland properly regulated, both local and international providers can apply for a license and operate legally. 

The sector is currently regulated by the Gambling Control Bill and in 2019, remote gambling reached a revenue of 40.6 million euros. Even though Ireland only accounts for 1.1% of the continent’s population, its online gambling revenue makes up a total of 2.6% of the industry’s total revenue in Europe. At the moment, more than 44% of all web-based bets are made through the use of smartphones and tablets, and it is expected that almost six out of ten online bets will be completed on mobile devices by 2025. According to the stats provided by the European Gaming and Betting Association, sports betting is the most popular category of digital wagering among the Irish, and in 2019 it covered 41% of the total market. 

Malta

Malta is widely known as the iGaming capital of the world, and the main reason behind that lies in the large number of gambling establishments scattered across the country, and the valuable employment opportunities that arise from their operations. Moreover, The Malta Gaming Authority (MGA) is one of the leading licensing bodies when it comes to European operators, and their work is acknowledged globally. Ever since 2018, the iGaming industry has been continually accounting for 12% of the total Maltese economy, which makes it one of the most important factors that affect the country’s GDP. 

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Thanks to the fact that some of the major iGaming companies are actually headquartered in Malta, the country gradually became the international gaming hub. However, due to the small size of the country’s population, Malta can hardly be compared with some other European countries when it comes to the number of players in the area.

Sweden, Norway and Denmark

Europe has experienced increased rates when it comes to iGaming participation in the past few years, and when it comes to this category of growth, the Scandinavian countries (Sweden, Denmark and Norway) stand at the very top. And after a more detailed analysis, we can see that the continent's leader in player participation is Sweden where online gambling revenue makes up 59% of the country’s total earnings from gambling. At the moment, it is estimated that Swedish web-based operators make 2.3 billion euros per year. 

On the other hand, Denmark launched the first potions of its online gambling market in 2012, and at the time, the revenue coming from digital providers made up 30.8% of the total earnings. As the market continued to evolve, it came to the point where the iGaming sector brings in an incredible 53.1% of the revenue. On top of that, there was a notable growth in mobile gaming which is responsible for 32.3% of the earnings made online. And finally, Norway is the country with the third-highest participation rate, making sure that the top three spots are reserved for Scandinavia. 

The Factors that Fuel Industry Growth

Besides the widespread interest in gaming among Europeans, there are several other factors that affect the development of online gambling in the area:

Faster Internet Connections

Increased accessibility is one of the main reasons behind the global expansion of online gambling, including the European countries. Thanks to the wide availability of stable internet connections that are faster than ever, players are free to access their favourite games at any time, wherever they are. Moreover, with the emergence of 5G and other types of standardized networks that support safe transfers of large chunks of data, users are also able to experience high-quality gaming on the go. For instance, players with stable and fast internet connections can easily watch live streaming and engage in game categories with state-of-the-art graphics. 

The Rise of Virtual Reality

Not only that the use of virtual reality has a huge impact on the growth of iGaming, but it also threatens to reinvent the industry with incredible immersive experiences that might force the platforms to include them in the offering in order to stay competitive. Virtual reality refers to a computer-generated imitation of reality where users can merge their surroundings with a virtual 3D environment with the help of electronic devices. Thanks to VR headsets and compatible entertainment platforms, players can enter a realistic world of gaming. The users can launch virtual games where they can interact with game elements and other components in real-time, just like they would in a land-based venue. 

In other words, punters can have realistic casino hall experiences in the comfort of their own homes. In 2022, there were around 171 million VR users in the world, and the number is expected to reach 404.1 million by 2027 in Europe only. Having that in mind, more and more operators are trying to get ahead of their competitors by offering a broad range of virtual casino titles. 

The Expansion of Live Casinos

The future of live dealer games is definitely bright, and this type of entertainment is one of the strongest pillars of the industry’s growth in Europe, as well as in other parts of the world. Every live session provides the users with an authentic casino experience, where they can interact with the dealer and other participants. The players can get fully involved in the game as the technology even simulates the seating that would take place around a regular casino table. The sessions are streamed from a particular location and punters can join the stream and wager in real time. The interactivity of live casino sessions is already on a very high level, and the quality is expected to go through the roof in the following years since the leading developers keep looking for ways to improve them and attract even more players with extraordinary features. 

Further Integration of Blockchain

When it comes to the newest developments in the online gambling industry, the integration of blockchain definitely takes the lead. Blockchain affects the growth of digital wagering by offering extremely secure transactions which is one of the main concerns in the market. The system is a distributed digital ledger that is kept on a network of different computers instead of just one, and as such, it records all the transactions in a safe environment that is almost impossible to hack. That is why nowadays many operators employ blockchain technology as an extra layer of security that keep all the sensitive data protected from malware. Also, more and more platforms include cryptocurrencies like Bitcoin and Ethereum as some of the conventional methods of payment on the site. 

The iGaming market has been thriving in Europe for a while now, and thanks to the population’s huge demand for online casinos and the supportive laws in many countries on the continent, its growth is unlikely to cease. On top of that, the industry’s expansion is supported by a number of technological developments that continue to transform the landscape, making it pretty exciting to see all the new features that will emerge in the year ahead of us.

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EU Reporter publishes articles from a variety of outside sources which express a wide range of viewpoints. The positions taken in these articles are not necessarily those of EU Reporter.
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