Europe’s Gambling Market Thrives, but Fragmentation Persists

The European gambling market is flourishing, yet a closer examination reveals a fractured reality. According to the latest data from the European Gaming and Betting Association (EGBA) and H2 Gambling Capital, Europe’s online gambling industry is not slowing down—in fact, it is gaining momentum. However, not all countries are moving at the same pace.

The European Gambling Market – Key Figures 2025 Edition report highlights that in 2024, the continent generated €123.4 billion in gross gaming revenue (GGR), marking a five percent increase from the previous year. Online gambling alone contributed €47.9 billion, up from €45.3 billion in 2023. By 2025, experts forecast that online revenue will surge to €51.1 billion, bringing online gambling to 40 percent of the total market share.

At first glance, the numbers suggest a smooth upward trajectory. But a deeper look exposes stark regional disparities.

Scandinavian countries are leading the charge, with Sweden’s online gambling sector accounting for 68.3 percent of total revenue, followed closely by Finland and Denmark at 68.1 percent each. Conversely, Spain lags far behind, with only 14.2 percent of its gambling revenue coming from online platforms. These figures are not minor statistical anomalies; they illustrate a European market that is expanding but not evolving uniformly.

Sweden’s online dominance is no accident. The country benefits from a liberal licensing regime, widespread internet access, and a population comfortable with digital payments. However, even Sweden’s push toward a cashless economy is encountering resistance, with concerns arising over banking outages and technological failures. The country’s regulatory approach has focused on channelisation rather than heavy-handed enforcement, ensuring that operators are licensed, consumers are protected, and the black market remains limited—or so it seemed.

Despite its robust regulatory framework, Sweden’s model has its vulnerabilities. A 2024 report by Spelinspektionen found that up to 15 percent of gambling in the country occurs with unlicensed operators. This shadow market is growing, particularly in online casinos, where younger men are drawn to looser regulations and more attractive incentives. Sweden may aim for high channelisation, but maintaining this standard is proving increasingly difficult.

Spain, in stark contrast, has implemented strict regulatory measures, including harsh advertising bans and tighter controls, which have inadvertently stifled the legal online market. While these measures were intended to protect consumers, they have instead pushed more players toward the unregulated sector. Rather than enhancing channelisation, Spain’s approach is inadvertently driving gamblers into riskier alternatives.

Denmark presents yet another case. The country has built a strong technological backbone and a regulatory framework that is clear and practical. The Danish gambling authority, Spillemyndigheden, provides transparency rather than confusion. However, Denmark is not immune to challenges. Spillemyndigheden has flagged a rising threat from illegal gambling, particularly online and among younger players. Despite efforts to block dozens of unlicensed sites, offshore operators and affiliate marketers continue to find ways to bypass regulations. Denmark’s rules are well-defined, but enforcement remains a challenge.

France and Germany present even more complex situations. France continues to prohibit online casino games altogether, leading many players to seek alternatives outside the country. Meanwhile, Germany’s federal structure creates further complications, with some states embracing licensing while others remain hesitant. The result is a sluggish and inconsistent market rollout. Germany’s gambling regulations are tightening, with operators required to comply with strict deposit limits, rigorous financial checks, and reinforced responsible gaming measures. Failure to comply carries significant penalties.

The United Kingdom stands apart in this landscape. Despite no longer being part of the EU, it remains Europe’s largest gambling market by GGR. According to the EGBA and H2 Gambling Capital, the UK generated €31.3 billion in GGR in 2024, outpacing Italy (€26.2 billion), France (€18.3 billion), and Germany (€18.1 billion). No other country comes close.

The UK’s dominance is no coincidence. The country legalized online gambling in 2005, well ahead of most of Europe. Winnings remain tax-free, advertising has traditionally been relatively unrestricted, and gambling remains deeply embedded in British culture, spanning from high-street bookmakers to the nation’s love for football and horse racing. Combined with a strong digital infrastructure and a diverse array of regulated products, the UK has maintained its leadership in the sector.

Yet, the UK’s regulatory landscape is shifting. The Gambling Commission has adopted a tougher stance, introducing affordability checks, stringent onboarding procedures, and a white paper roadmap that has raised concerns across the industry. Operators worry about excessive regulation, while players feel restricted. The UK, once seen as a model of regulatory maturity, now faces the risk of overregulation pushing gamblers toward unlicensed alternatives. The UK serves as both a success story and a cautionary tale—an industry built on innovation but now encumbered by its own rulebook.

The EGBA report underscores stark differences in product preferences across Europe. Lotteries continue to dominate land-based gambling revenue, online casinos reign supreme in the digital space, and sports betting straddles both domains. However, national regulations vary dramatically.

A player in Finland can easily access online slot games, as the country still operates under a state monopoly, though a transition to a licensed market is anticipated by 2026. Meanwhile, the Netherlands enforces some of the continent’s strictest player protection measures, including loss limits, cooling-off periods, and mandatory participation in a self-exclusion register (Cruks). Spanish regulations are equally stringent, with advertising restrictions among the harshest in Europe. Since the implementation of the Royal Decree on Commercial Communications in 2021, most online gambling advertisements are banned outside a 1 am–5 am window, and bonus promotions are restricted to verified long-term players. Additionally, Spain plans to implement stricter ID verification requirements to prevent minors from gambling.

Malta, home to the Malta Gaming Authority (MGA), offers another layer of complexity. Many operators licensed under the MGA serve multiple EU markets via cross-border agreements, but national laws remain paramount. What is permissible in one country may be prohibited in another, creating a compliance nightmare for operators and confusion for consumers. The European gambling landscape is less a single market and more a mosaic of regulatory frameworks, each with its own interpretation of “responsible gaming.”

One unifying trend, however, is the rise of mobile gambling. In 2024, 58 percent of online gambling occurred via mobile devices, up from 56 percent in 2023. Players are increasingly betting on the go, whether in Sweden or Spain. Yet, regulatory approaches remain inconsistent. A gambling app that is legal and widely promoted in one country may be blocked outright in another. User verification requirements range from simple authentication to exhaustive personal documentation.

Politics further complicates the landscape. National instability inevitably influences gambling policy. Spain’s coalition politics hinder regulatory consistency, while Germany’s 16 federal states rarely align on reform. The UK continues to grapple with Brexit’s regulatory ramifications, and the EU struggles to establish a unified stance on gambling.

For some nations, gambling represents a public health issue; for others, it is a lucrative revenue stream. Some see it as a moral hazard, while others view it as an integral part of the digital economy. With such divergent perspectives, European regulations continue to drift further apart.

EGBA projects that total European gambling revenue will reach €127.7 billion in 2025 and €149.2 billion by 2029, with online gambling approaching half of the total market. However, this growth will be anything but uniform. Some nations will embrace digital gambling innovations, while others will impose stricter controls. The regulatory patchwork will persist.

Maarten Haijer, EGBA’s Secretary General, remarked, “Online channels are showing stronger momentum, driven by changing consumer preferences and technological advancement.” The momentum is undeniable, but unity remains elusive.

If Europe aspires to build a truly single digital market, it must confront the fragmentation within its gambling industry. For now, the European gambling landscape remains more of a jigsaw puzzle than a cohesive whole. The numbers are climbing, but without regulatory coordination, the market will remain a disjointed, 27-nation free-for-all.

By fLEXI tEAM