The online gambling industry is a major player in global entertainment and finance. Influenced by regulation, technology, increasing market demand, and constantly used as a political tool, the sector looks set to witness an unprecedented period with a projected value of USD 164.53 billion (€151.37 billion) by 2033.

This year is pivotal as online gambling expands beyond borders. With a vast market opening in Brazil in 2025, Africa’s emergence, and global political chaos, the online gambling industry will see new opportunities and challenges. Each region has its own set of regulations, hurdles and cultural considerations.

These may be difficult to navigate, but operators who adapt to localisation, wider global trends, and market demands will succeed. Now these emerging markets are coming into focus, the landscape of online gambling is set for a sizeable shift.

This article examines a MECN Online Gambling Quarterly Winter Edition Western Europe Focus report.

Current business climate

This is a survey of industry participants answering questions about the current and future climate of the online gambling industry. The survey took participants from differing parts of the industry.

The online gambling industry today is marked by uncertainty. Only 34 percent of experts rate the business climate as “good.” The other 66 percent say it is either “satisfactory” or “poor.” When compared to previous quarters, there is no clear trend, and no major factor consistently influences the industry’s climate. Uncertainty in emerging markets and regulation changes has contributed to the lack of clarity in the respondent’s answers.

Future business climate

Looking ahead, 35 percent of experts believe the future business climate will be “good.” However, the future outlook remains similar to the current environment. Both periods show fluctuations but with no definite trends. Shifting global dynamics will ensure uncertain market conditions in the next twelve months. While this survey appears gloomy on a global scale, its Western European focus points to the regulatory complications and potential future tax burdens that loom on the horizon.

Industry climate development

Although this survey highlights fluctuations in the business climate over several quarters, there has been no standout mega-trend, such as artificial intelligence (AI) or market regulation. While newer markets like Brazil open, and LATAM expand, European markets are becoming more complex, and the U.S. markets are consolidating. The Online Gambling Quarterly survey points to the fact that for the first time in a while, the overall outlook remains unpredictable, with future outlook below the current business climate outlook.

Key trends and insights

Several trends shape the future of online gaming:

1. Latin America is rapidly gaining significance in the online gambling industry. The region’s iGaming market is expected to grow from $2.7 billion to $4.3 billion (€2.59 billion to €4.13 billion) within four years. Increasing internet access, mobile adoption and a growing middle class with disposable income are key drivers. Also, countries like Brazil and Colombia lead the charge with proactive regulatory frameworks. This will protect consumers and will stabilise the market to attract international investment.
2. More established markets like the U.S. face increasing regulatory pressures. Operators must remain adaptable and foresee any future state and federal regulatory and market developments to continue to grow and shape the industry’s future. SiGMA News presented an in-depth review of the U.S. sweepstakes landscape, based on a Vixio Regulatory Intelligence report.
3. Technological advancement is a fundamental aspect of future growth. Virtual reality (VR) and augmented reality (AR) will grow, with VR revenues expected to surpass $12 billion (€11.52 billion) by 2026. VR creates immersive gaming experiences where users interact with 3D environments. AR enhances real-world landscapes with digital elements.
4. AI and cloud gaming will also transform how players access games. It will also examine their individual behaviours, thus helping with the player experience and giving the operators improved security and anti-gambling addiction measures.
5. Changing consumer habits, like the rise of social casinos, where players can engage without financial stakes, indicates a movement towards inclusivity in the gaming community.

As these trends shape the industry, some companies adapt faster than others. They emerge as frontrunners while others struggle to keep pace.

Winners and losers

Respondents predict that Betano (Kaizen) and Stake.com will experience the most significant growth in Western Europe over the next twelve months. The survey’s panel of experts and insiders acknowledged that Bet365 also remains a strong player, but sees Betano and Stake taking over the leading role and increasing their market share.

Traditional giants with notable growth include Betsson, LeoVegas, Betclic Group, Kindred/FDJ, PokerStars (Flutter), Betway and Bwin (Entain). These well-established brands continue to expand their presence with increased attention to customer engagement and mobile-first platforms, for example. These brands tap into younger demographics with seamless mobile experiences and digital-first products.

However, they face competition from newer, more dynamic operators like TonyBet and ComeOn Group. By offering a large variety of sports betting options, personalising experiences and presenting competitive betting odds, these newer operators aim to challenge the domination of the long-established firms. For example, ComeOn Group invested heavily in its proprietary sports betting platform and trading capability, enhancing their portfolio.

On the opposite end of the scale, operators like Mr Green (WH), La Palingo, and Novoline are expected to see minimal to small revenue growth. These companies may struggle to keep pace with the rapidly changing market. The larger operators continue to invest in new technologies, including AI and blockchain, and ways to integrate cryptocurrencies.

Product trends

The survey highlights several key product trends that look set to shape the online gambling sector in the coming year:

1. Mobile casino is expected to experience the largest growth. This sees it overtake mobile betting. Operators are enhancing their mobile interfaces and now incorporate innovative features like live casino options and augmented reality(AR) to make the experience more engaging.
2. Crash games have made a notable comeback, ranking third in growth potential. This is a popular genre offering fast-paced, high-risk games. Crash games provide an ideal option for a more dynamic and interactive experience, blending gambling with the gaming-style interface. A forward move for this sector came last week with news of Flutter Entertainment reaching a settlement in its legal dispute with Aviator LLC.
3. Crypto gambling looks set for a boost, mainly as cryptocurrency prices fluctuate. This presents potential for growth in regions where traditional banking methods are less accessible.

While this survey paints a picture of uncertainty for the Western European online gambling industry, it also emphasises the importance of adaptability and innovation. Those operators who embrace new technologies, respond to regulatory changes, and cater to ever-evolving customer preferences will thrive in this potent landscape.

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