European gambling revenues suffer from 23% decrease this year
The gambling sector is still recovering from the effects of the COVID-19 pandemic, as data from the European Gaming and Betting Association (EGBA) has revealed that betting revenues will be falling by 23% in 2020.
The data was published in collaboration with H2 Gambling Capital, and has unveiled that Europe’s total gambling revenue will decrease from €98.6 billion gross gaming revenue in 2019 to €75.9 billion in 2020.
“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,” explained Maarten Haijer, Secretary General of the 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.”
These figures cover the EU-27 countries (and the UK) and have suggested that online gambling revenues all over the continent have increased from €24.5 billion GGR in 2019 to €26.3 billion in 2020, which marks an increase of 7%. However, this increase does not make up for the losses across the land-based sector. The EGBA predicts that revenues could possibly decrease by 33% in 2020, from €74.1 billion GGR in 2019 to €49.6 billion.
The industry trade body has said that ‘the steady growth of Europe’s online gambling market is expected to continue, with online GGR expected to grow approximately 7% yearly and reach 33.6% of Europe’s total gambling revenue by 2025’.
According to the EGBA, this claim will be supported by the continued growth of mobile betting, since it is predicted to make up 45.6% of Europe’s online gambling revenue in 2020 and to attain 50.8% by 2022. Mobile betting is expected to reach 58.2% in 2025.
The data also underlined the fact that 63% of customers used at least one safer gambling tool, an increase from 37/5 in 2019, along with 1.2 million direct interventions with users to promote safer gambling, which is up by 50% from the previous year.
Additionally, the EGBA emphasised its member companies’ economic impact in 2020 with a combined €5.6 billion in online GGR, with €340 million being invested in European sports, €107 million through sponsorships and €233 million in streaming rights. This sees a massive increase of 56% from 2019.