Europe’s gambling revenue is set to drop by 23 per cent this year due to the major land-based declines caused by COVID-19.
According to new data published by the European Gaming and Betting Association, in partnership with H2 Gambling Capital, Europe’s total gambling revenue will drop from €98.6bn gross gaming revenue in 2019 to €75.9bn in 2020.
The data, covering EU-27 and UK markets, forecasts Europe’s online gambling revenue to increase by seven per cent this year, from €24.5bn GGR in 2019 to €26.3bn in 2020.
However, this will not compensate for Europe’ land-based decline, with revenue expected to drop by 33 per cent this year, from €74.1bn GGR in 2019 to €49.6bn.
“We commend our members’ efforts in support of safer gambling and their significant investments in European sports. Like many other sectors, Europe’s gambling sector has taken a hit from COVID-19 this year but the growth trend of online continues to be strong,” noted Maarten Haijer, secretary general, EGBA.
“There is also still lots of room for growth in markets like France, Germany, Italy, and Spain, where the online penetration of the total gambling market is still relatively low compared to other European countries.”
Yet the EGBA has cast its eye into the future and anticipates a steady growth of Europe’s online gambling market, with online GGR expected to grow by approximately seven per cent yearly and reach 33.6 per cent of Europe’s total gambling revenue by 2025.
Moreover, the use of mobile devices for online betting is expected to continue rising in popularity. The EGBA states that mobile betting is forecast to account for 45.6 per cent of Europe’s online gambling revenue in 2020, reaching to 50.8 per cent in 2022 and surpassing the use of desktop for the first time. Mobile betting usage is projected to reach 58.2 per cent in 2025.
Also published by the EGBA is detailed European information from its member companies, such as bet365, Betsson Group, Entain, Kindred Group and William Hill. This includes information about their customers market value, games, investment in sports, licensing and regulatory compliance.
The data highlighted that 63 per cent of customers used at least one safer gambling tool, an increase from 37 per cent in 2019, along with 1.2 million direct interventions with customers to promote safer gambling, a 50 per cent increase from the previous year.
Furthermore, the EGBA emphasised its member companies economic impact in 2020 with a combined €5.6bn in online GGR with €340m invested in European sports, €107m through sponsorships and €233m in streaming rights. This was an increase of 56 per cent from 2019.