In its modern form, online gambling has become a popular source of entertainment that, despite facing numerous regulations, thrives in Europe more than in many other regions of the world.
For anyone seeking to navigate the intricate landscape of online gambling laws in the EU & UK, it's imperative to recognize that the legal framework is multifaceted, varies between nations, and undergoes continual evolution. Nevertheless, Europe stands as a prime destination for both players and online casino operators.
This article provides an overview of key aspects of online gambling, including its definition, its significance within the broader gambling landscape, the general approach of the EU toward online gambling, and the diverse regulatory approaches taken by individual countries.
Understanding Online Gambling
Online gambling, often referred to as iGaming, involves two parties using online platforms or applications to wager on games with predominantly unpredictable outcomes.
Common game types found in online gambling include:
The definition of online gambling is not rigid and remains a subject of ongoing debate.
For instance, in response to the many restrictions on iGaming in the Germany, numerous companies that operate traditional land-based casinos have introduced "casino-like" online experiences, commonly known as "online casino reviews" where no real money is involved. Social casinos aim to provide a gaming experience using virtual currencies that cannot be converted into fiat currency.
On the other hand, the inherent unpredictability of game outcomes has prompted regulators to recognize that loot boxes in video games, due to their random reward nature, also qualify as a form of gambling.
Popularity of Online Gambling
Europe is often regarded as the global epicenter of gambling, and this reputation is well-founded. Gambling has a rich historical tradition in Europe, and favorable legislation has fostered the development of gambling hubs in locations like Gibraltar and Malta. These hubs serve as bases for international online gambling platforms accessed by players worldwide, whether from jurisdictions where online gambling is legal or those where it is not.
Today, the gambling industry in Europe is significant, as evidenced by the following selected statistics:
- The total revenue of the European gambling market reached 81.1 billion euros in 2020, with projections indicating an increase to 126.3 billion by 2026.
- In 2019, Europe boasted an online gambling market channelling rate of 73.5%, implying that nearly three-quarters of online gambling activity occurred in regulated markets, while 26.5% transpired in unregulated or black markets.
- The market share of online gambling continues to rise steadily and is anticipated to represent 33.6% of Europe's gross gaming revenue by 2025.
- Among European countries, Sweden had the highest proportion of its gambling activity conducted online at 66.2%. Denmark and the United Kingdom followed, with online gambling market shares of 59.4% and 59.3%, respectively.
The top five European countries with the highest gross gaming revenue (GGR) in 2020 were:
- United Kingdom
- Italy
- Germany
- France
- Spain
