The online gambling market in Europe is experiencing significant growth, with a notable recovery and expansion since the disruption caused by the COVID-19 pandemic. Reports indicate that the overall gambling market has grown by approximately 4.58%, while online gambling has increased by 7.84%, according to records from H2 Gambling Capital.
Based on data from 2023, the total revenue of the gambling industry reached 131 billion euros, with online gambling accounting for about 39%, amounting to 51 billion euros. The market dynamics have largely been influenced by the temporary closure of physical casinos during the pandemic, forcing customers to seek online alternatives.
Specifically, the lottery industry generated 38 billion euros in revenue, followed by sports betting with 33 billion euros, online casinos with 30 billion euros, and gaming machines contributing 26 billion euros.
Sports betting has become one of the favorite pastimes in Europe, with major sporting events like the European Championship and the World Cup greatly boosting the development of sports betting, both of which have spurred an increase in online betting activities. Forecasts show that both the sports betting and lottery industries are on a good growth trajectory, with compound annual growth rates expected to be 8.6% and 8.4% respectively by 2029.
Despite the increasing popularity and entertainment value of online gambling, concerns about gambling addiction have also surfaced. The European Gaming and Betting Association (EGBA) conducted a study highlighting the problem gambling rates across Europe, ranging from 0.3% in Ireland to 6.4% in Latvia. Portugal also reported alarming figures, with data from the gambling hotline showing that requests for support for online gambling addiction jumped from 39.58% to 48% between 2023 and 2024.
To address this increasingly serious issue, EGBA members have invested over 140 million euros in the past four years in initiatives aimed at mitigating gambling-related harms, with 61 million euros invested last year alone. EGBA Secretary-General Maarten Haijer stated, "Player protection is an evolving cause—there is always room for innovation and improvement, and our members are committed to enhancing their gambling safety methods."
The industry also faces regulatory challenges as it competes with unregulated websites and applications from outside the EU. EGBA Senior Communications Director Barry Magee noted, "These platforms do not adhere to the safeguards we have established in Europe for players, nor do they pay taxes." H2 Gambling Capital estimates that by the end of 2023, about 21% of online gambling activities in Europe will occur outside regulated environments, leading to unregulated market revenues of about 13 billion euros.
In urging stronger enforcement against non-EU operators, Magee emphasized that the regulated gambling environment in Europe must be sufficiently attractive to players to reduce the appeal of unregulated options. This dual approach—strengthening regulation and enhancing player incentives—could significantly promote safer online gambling practices.
Overall, the growth of the online gambling market brings both opportunities and challenges as stakeholders seek to balance profitability with responsible gambling behavior. Whether through stimulating economic benefits or addressing gambling addiction issues, the stakes are high—not just for the industry but also for individual players.
