Across the globe, the gambling market is nothing a swift growth. Even though Europe is considered the home of the global iGaming industry, North America seems to be ready to unravel its true potential. According to market data consultancy H2 Gambling Capital, the global online gaming segment in 2021 had gross gaming revenue (GGR) of €87.2 billion (USD 89.15 billion), experiencing a growth of 23% compared to 2020, which was majorly impacted by the COVID-19 crisis and brought to halt sporting events around the world.
Experts from leading B2B provider of sports betting software, solutions and services BtoBet (part of NeoGames group) consider legislations play a determinative role when it comes to the evolution of online gambling markets worldwide. When compared, the European and North American gaming engines have different regulatory frameworks. Stringent legal framework of North America is the main reason this market’s build-out lags behind the European one, as well as its complexity, including concurrent state and federal regulation. On the other hand, the countries constituting the already mature market in Europe are independent in terms of jurisdiction and passing their own laws, without specific EU governing and legislation concerning the betting and gambling industry.
GAMBLING REGULATORY CHALLENGES
However, this autonomy in Europe introduces challenges of their own kind, especially in markets such as the UK and Germany. Over-regulation in these countries makes it increasingly onerous for businesses to operate in. Along with operators, the European Organization for Gaming Law also shares this viewpoint, indicating that excessive regulation has massive negative impact on legal businesses, reversing the recent years regulatory reform process for making gambling safer and more transparent, as well as casting a shadow over the industry and safety of the market in general.
Compared to this over-regulation that seems to be stifling parts of the European market, the North American online market driven by fast-paced legislation advancement, growth of consumer base and product innovation is expected to surpass the Old Continent in the next decade.
The recent enactment of Bill C-218 in Canada and many benefits of rapid legalization of the sports betting vertical in the U.S. are also positive trends. Data provided by VIXIO GamblingCompliance indicate the generation of USD 6.7 billion to 8.0 billion in gross revenue in 2022. By 2025, this vertical is expected to be worth between USD 12.1 and 17.7 billion in annual gross revenue.
Although a complex layout, the market in North America offers a pool of opportunities yet to be brought to light. The rush amongst operators to acquire a predominant market share is also present among European-based operators, especially the ones exiting certain European jurisdictions deemed as overly regulated, undertaking steps to open operations in new markets such as this one, and also in Latin America.