The coexistence of regulation, innovation, and user engagement has made Europe a dynamic but fragmented market for this activity. By Damian Martinez, journalist at G&M News.
For quite some time now (even before the pandemic), Esports have been gaining mainstream popularity, redefining global entertainment patterns. This situation has not only captivated millions of spectators worldwide, but it has also caught the eye of the betting industry. As competitive gaming tournaments offer prize pools rivaling traditional sports championships, the appetite for wagering on these events has grown exponentially.
Betting on Esports is no longer a fringe activity; it has become a significant market within the broader gambling ecosystem. This surge, however, has created a regulatory puzzle for European countries, each with distinct approaches to gambling legislation.
A FRAGMENTED MARKET FOR ESPORTS BETTING
The European market, known for its diversity in cultural and legal frameworks, has had to rapidly adapt to the new world of Esports betting. While some nations have eagerly embraced the change, amending their laws to include this burgeoning sector, others remain cautious or outright prohibitive, citing concerns about gambling problems, underage betting, and the integrity of Esports competitions. This variance in approach has created a complex landscape where enthusiasts and operators must navigate different rules, depending on the country they are in.
Understanding which European countries allow Esports betting and the regulatory nuances of each is crucial for both industry and players. Furthermore, online casinos and betting platforms dedicated exclusively to Esports are emerging, offering specialized services that distinguish them from traditional sportsbooks. These platforms often provide interactive features tailored to Esports audiences, such as live streaming of matches, in-depth analytics, and real-time betting options. The coexistence of regulation, innovation, and user engagement has made Europe a dynamic but fragmented market for Esports betting.
COUNTRIES LEADING THE WAY
Certain European nations have paved the way by integrating Esports betting into their gambling frameworks. The United Kingdom, for example, stands as a leader due to the flexibility of its 2005 Gambling Act, which allows licensed operators to offer Esports betting alongside traditional sports and casino games. The UK Gambling Commission regulates this sector, ensuring transparency and protection for bettors. Betway, one of the most prominent online casinos, with a comprehensive Esports betting experience, has capitalized on the UK’s permissive stance by sponsoring major teams and events, boosting its credibility in the market.
Malta has also become a hub for Esports betting, leveraging its reputation as a global leader in iGaming regulation. The Malta Gaming Authority (MGA) has issued licenses to several specialized Esports betting sites, fostering an environment where operators can thrive under a well-defined legal framework. Companies such as Unikrn, an early pioneer in the Esports betting sphere, have established operations in Malta to benefit from its forward-thinking approach.
Meanwhile, Spain has defined measured rules that combine openness with rigorous regulation. Under the oversight of the General Directorate for the Regulation of Gambling (DGOJ), Esports betting is permitted and regulated similarly to traditional sports betting. Spanish operators have capitalized on the growing interest, with local platforms like Codere integrating Esports betting into their portfolio. However, Spanish authorities have kept a close watch on advertising practices, ensuring that promotional content adheres to strict guidelines to prevent targeting underage or vulnerable audiences. This dual focus on market growth and consumer protection exemplifies Spain’s cautious but progressive stance on integrating Esports into its broader gambling ecosystem.
Known for its historically strict gambling regulations, Italy has shown a cautious yet notable willingness to incorporate Esports betting into its legal framework. Under the oversight of the Agenzia delle Dogane e dei Monopoli (ADM), operators can offer Esports betting as long as they obtain specific licenses and adhere to responsible gaming policies. Italian operators have leveraged this regulatory clarity to expand their proposals, with platforms like SNAI and Eurobet adding Esports sections to attract a tech-savvy, youthful demographic. Italy’s approach reflects a strategic adaptation to new betting trends while maintaining a focus on consumer safety and fair play.
Moreover, Denmark has emerged as a strong player in the regulated market, driven by the proactive stance of its gambling authority, Spillemyndigheden. Danish regulators have embraced Esports by ensuring that licensed operators can offer betting services that comply with existing laws focused on transparency and responsible gambling. This method has allowed Danish operators to create secure and engaging platforms for Esports enthusiasts in order to prevent fraud and protect vulnerable users.
Sweden also presents an interesting case, as it has long been recognized for its robust gaming industry and innovative tech scene. With the re-regulation of its gambling market in 2019 through the introduction of the Gambling Act, Esports betting found a clearer pathway within the Swedish system. Licensed operators under the Swedish Gambling Authority (Spelinspektionen) can offer Esports betting if they assure to adhere to the stringent rules on advertising, player verification, and responsible gaming practices. This has contributed to a flourishing market, as Swedish consumers are known for their early adoption of digital trends, including Esports.
REGULATORY CHALLENGES AND RESTRICTIVE STANCES
However, not all European countries are as accommodating. Germany, for instance, has struggled with a patchwork of regulations that often vary by region. While recent updates to the Interstate Treaty on Gambling in 2021 have made strides in standardizing the landscape, the rules around Esports betting remain complex and somewhat restrictive. Operators must obtain specific licenses, and severe oversight has discouraged some companies from fully committing to the German market.
For its part, France presents another example where regulation has lagged the pace of Esports growth. Although the French Gambling Authority (ANJ) oversees all forms of gambling, betting on Esports still faces limitations that have stifled market development. The reluctance stems from concerns over match-fixing and the protection of young audiences, given the youthful demographic often associated with Esports.
In the Netherlands, the introduction of the Remote Gambling Act in 2021 marked a significant overhaul of the country’s gambling landscape, making it possible for operators to apply for licenses to offer online betting. However, Esports betting has not yet been fully integrated into the mainstream menus, partly due to the stringent measures set by the Kansspelautoriteit (KSA), the Dutch Gambling Authority. The KSA’s focus on transparency and consumer protection has delayed the rollout of Esports-specific betting regulations, leaving operators in a gray area where the boundaries of legal Esports betting remain unclear. This cautious stance, aimed at preventing youth gambling and ensuring game integrity, has slowed the adoption of Esports betting despite a growing audience eager for such services.
Finally, Belgium is another example of a nation with significant regulatory hurdles that impact the Esports betting market. The country’s harsh laws on online gambling, overseen by the Belgian Gaming Commission, impose high licensing fees and operational requirements that many operators find challenging. While Esports betting is technically allowed under the current framework, the burden of compliance has limited the number of legal options available to consumers. Concerns over match-fixing and the integrity of Esports competitions have further fueled the reluctance of regulators to fully embrace this type of betting, contributing to a market that remains largely underdeveloped compared to more progressive neighbors.
