According to MicroSmallCap, it appears as if the European online gambling market has a secret ingredient that is making its industrial boom. The European online gambling market is among the top two biggest earners in the world.
What then is the secret?
The regulations and monitoring of online gambling sites activities are far better in the European Union. In other words, it is almost impossible for an online site to operate without a license or not pay taxes.
Is strict monitoring and regulation the only secret?
With a projected earning of nearly $35.5 billion in 2022, monitoring and strict regulations are not the only secrets behind their success. Did the pandemic play any role in this growth? Let’s find out!
Online European Gambling New Markets
The two emerging markets in the EU are Switzerland and Poland. Some industry watchers are surprised at how well both online gaming markets are doing.
Switzerland: Before 2019, gaming online in Switzerland was illegal. Also, the Swiss government blocked all access to unlicensed gaming sites and apps. However, in July 2019, the Swiss government permitted land-based casinos to operate online casinos. Interestingly, the online gambling market in Switzerland quickly gained traction. The recent revenue posted by Eidgenössische Spielbankenkommission (ESBK) (the country’s online gambling regulator) earned CHF 23.5 million (USD 26million) in the first partial year of their operations. For instance, Grand Casino Luzern’s brand mycasino.ch earned USD 10 million in 2019.
Poland: Although online gambling was legal in Poland before now, their online gambling market was not doing well. However, since the pandemic broke out, most land-based casinos have switched their interest to online gambling. The absence of tourists in major cities like Warsaw has drastically reduced the income of land-based casinos.
Social Network of European Gamblers Communities
Another secret of the EU online gaming market is its huge social network. Most online gambling companies operating in the EU engage in massive social networking campaigns. Sometimes social networks of communities of gamers are organized to create more awareness.
In the same vein, one of the companies with the highest number of gaming enthusiasts is Enthusiast Gaming. They currently have more than 300 million gaming enthusiasts on their platform. Also, other social networks that have a large number of gaming fans are Pocket Gamer Connects.
Enthusiast Gaming recently hosted a gaming festival online with over 12 million watching. The online gambling companies engage these social networks of gaming fans companies to improve their businesses too.
Gross Earnings of Online European Online Gambling Market
Most of the big names in the EU online gambling industry cashed in on the lockdown. They made huge profits, and their revenue grew steadily even while other sectors were wailing. Let’s take a look at the revenue index of some gambling EU companies:
Glu Mobile: Their income rose by 43.88 percent in the last quarter of 2020. Also, its revenue climbed to US$158.50 million. This is above their estimated earnings of US$136.30 million projected for the year.
Bragg Gaming Group: They experienced revenue growth of 72 percent in the third quarter of 2020. Bragg generated €11.7 million in the Q3 of 2020. Meanwhile, within the same time frame last year, the company generated €6.8m in Q3 2019.
Activision Blizzard: Activision recorded a 28 percent increase in its revenue. The company is expecting up to US$2 billion in the fourth quarter of this year.
The EU gambling industry growth is also a result of new players showing interest in the online gambling market.
The Impact of COVID-19 on European Online Gambling Industry
The COVID-19 affected the operation of almost all sectors in Europe. As far as the gambling industry is concerned, land-based casinos were the worst hit. In some countries, land-based casinos were locked down for more than three months. Even after the lockdown was lifted, brick and mortar casinos operated under strict regulations.
Meanwhile, online casinos in Europe somehow scaled through the lockdown unhurt. Don’t forget, the lockdown increased the time most gamblers spent at home. Therefore, they had time to stake bets online. Besides, the best online casinos real money were still operating during the lockdown.
For instance, Activision Blizzard recorded a growth in their revenue by 28 percent in 2020. Also, Activision Blizzard plans to increase its stake in the industry and yield more revenue in the coming year. Bobby Kotick said some entertainment franchises generated more than $1 billion this year. Bobby is the CEO of Activision Blizzard.
Is This Sudden Growth in the EU Online Gambling Market Sustainable?
Yes, if the governments in Europe continue to look for initiatives that will help the industry grow. Tax reliefs, grants, etc., are the incentives that these online gambling companies need to grow their businesses.
Finally, it appears that the pandemic also played a major role in the growth of the online gambling EU. What’s more? Most land-based casino customers switched to online gambling.