How big is the iGaming market in Europe compared to the US?
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The iGaming market is experiencing rapid growth over the last couple of years on a global scale. However, the two driving factors that move the entire industry are the Europe and US iGaming markets.
North America, especially the United States, has witnessed rapid growth in the iGaming industry. Gambling entertainment in North America ranges from traditional brick-and-mortar casinos to online casinos and iGaming in general.
Meanwhile, European countries have also had a long tradition of gambling in casinos and sports events. Historically, horse racing betting has been a part of the UK’s gambling market since the 17th century. Gambling online has taken over traditional forms of gambling since the advent of the internet.
Due to technological advancements, both North American and European iGaming markets have contributed a lot towards the growth of the entire industry.
Since we talk about two giants in the iGaming space, it is time to find out how big is the Europe market compared to the United States market.
Online Gambling in General
The convenience of iGaming and the loose nature of legislation governing the market are driving its popularity. That is why many iGaming companies turn to SEO for marketing services, as it’s easier to manage than advertising on TV or radio. You can find more information about that on this website: https://www.fortismedia.com/industries/igaming-seo-services/
In this young, but extremely dynamic, industry, legislators are still catching up.
Several innovations within the online gambling niche have contributed to the rapid growth of the gambling industry. In the past few years, internet gambling has advanced to unprecedented levels with the advent of the internet and migration from land-based gaming establishments to online gambling sites.
Globally, 26% of the population, or 1.6 billion individuals, gamble regularly in 2019. Online gambling sites are becoming more and more popular as more people turn to them to gamble on casino games and sports.
According to recent estimates, the global market for internet gambling will be worth $84.9 billion by 2023. A growing number of brick-and-mortar casinos and sportsbooks are adopting online gambling options like casinos online Canada as a convenient way to increase their revenue.
Legislation for iGaming in Europe Compared to the US
Before we highlight the industry size of both markets, one of the most important things to consider since this dictates how many iGambing establishments are present in the market. Since we are talking about different markets, they both have different regulatory frameworks.
When it comes to the market size, legislations play an important role that can hold back or push the popularity of the iGaming industry.
Europe Online Gambling Market
With over 41% of the global iGaming market capitalization, Europe continues to dominate. UK laws on iGaming are friendly and lenient, which contributes to the UK’s accommodativeness.
Online gambling is not expressly prohibited by any EU law, despite all EU countries passing their own gambling legislation. As a result of the significant revenue generated by online gambling, most countries allow regulated online gambling.
Europe’s iGaming market is dominated by France, Germany, and the United Kingdom.
The US Gambling Market
Even though the US market is no match for its European competitors, it is slowly boosting its online gambling sector. Its strict legal framework contributed to the US online betting market’s slow growth.
Several states have enacted iGaming-friendly laws as a result of the federal government’s legalization of online sports betting. It is currently legal in more than a dozen US states to bet on sports online.
In 2018, the US Supreme Court rejected the federal government’s prohibition of sports betting, overturning the 1992 Professional and Amateur Sports Protection Act. However, some states are adamant about changing their laws to reflect federal regulations.
It has recently been inferred by the DOJ that the Wire Act, of 1961, extends to online wagering in the US. By doing this, states are limited to offering online betting services only to residents.
Online gambling is legal in some states but not in others due to the absence of federal legislation regulating the activity. Most states refrain from sanctioning the activity. As a result, American gamblers will not be arrested if they participate in online gambling.
Market Size Europe Compared to the US
Comparing the European and North American iGaming markets, it is clear that the European market is doing better. The US and Canada are, however, positioning themselves to capture a greater share of the iGaming market.
Online gaming and land-based gambling are experiencing significant growth as people move from one to the other. Due to the federal legalization of sports betting, the US market is also expected to grow rapidly.
Now even though the Europe gambling industry is more advanced and countries allow such companies to operate freely, the US iGaming size still gets the edge in terms of revenue.
According to Newzoo data, the European market generated $23.2 billion last year, whereas the US gaming market attributed $60 billion during the same period.
This proves that the US market is far ahead of Europe considering that online gambling is legal only in Delaware, Michigan, Connecticut, West Virginia, New Jersey, and Pennsylvania.
As legislation towards online gambling in the US continues and we see more states softening their laws towards online gambling companies, we will see rapid growth in the next couple of years.
We have the same case when we compare the player base in both markets. According to an ESA report, there were around 215 million active players in the US in 2021. Europe holds a much lower player base, where according to EGDF’s and ISFE data, there were only 125 million active players in Europe over the same period.
Verdict
Both Europe and the United States are the biggest iGaming markets in the world and they will continue to be the driving factor for the global iGaming industry.
If we compare both markets, we can see that the US iGaming market proves to be much superior in terms of player base and revenue. US players also tend to spend more time playing. The average time is around 13 hours, compared to Europe which is only 9 hours.
In the future, we will see a much wider gap between these two markets as the US will continue to move forward and generate more revenue as more states legalize online gambling.
