A land of strict regulations and high taxes, Western Europe still manages to lure iGaming operators with the promise of untold riches: this region alone accounts for almost half of the world's online gambling market size. In this article we'll present an overview of online gambling in Europe.
Pushed by the need to boost revenues and control the effects of new technologies, most governments in the region have legalized and regulated online gambling by instituting local licensing systems.
This process has allowed private operators to enter some of the world’s wealthiest markets, replacing the pre-existing model of public monopoly on gambling, the remains of which are still visible in the form of national lotteries.
From promised lands like the United Kingdom and Italy to small gambling jurisdictions punching way above their weight like Malta, here’s a rundown of the region’s markets.
Over the last few decades, Western Europe has become the epicenter of iGaming.
The revenue generated by online gambling in Western Europe is projected to reach $31.28 billion in 2024, and is expected to show an annual growth rate of 4.25% between 2024 and 2029.
The European iGaming markets are the richest and the most active in the world, but they are also the oldest, and therefore have the world’s most stable, sophisticated regulations. European gambling regulations serve as an example for the rest of the world, but that doesn’t mean they’re perfect; they are not always successful in their fight against the black market and sometimes are also criticized.
Below you will find a detailed breakdown of regulations in the European online casino and betting markets.
To find out more about gambling in Europe and other gambling and betting markets of the world, check out our interactive map of gambling regulations. Just choose a country, click and see if online and offline sports betting and casino games are legal, not regulated, or banned.
The British gambling industry is nothing short of massive, with almost 100,000 people employed in the sector and a gross gambling yield (GGY) surpassing the £14 billion a year mark. The total GGY of the UK gambling industry reached £15.1 billion from April 2022 to March 2023, of which £6.5 billion came from the remote casino, betting, and bingo sector.
Gambling can be considered to be part and parcel of British culture, with nearly half of the adult population punting on a monthly basis. Sports betting is extremely popular, while horse race betting, albeit on the decline, plays a significant role in the local gambling scene.
The British gambling industry is regulated by the 2005 Gambling Act, which allows the operation of both land-based and online establishments upon obtaining a license issued by the local regulatory body, the Gambling Commission. The annual license fees for online casinos are calculated based on the operator’s GGY, ranging from a few thousand pounds to well over half a million pounds for yields above the £1 billion mark. License holders have to pay 21% of their GGY generated from UK customers in taxes.
Due to technological advances since the introduction of the Gambling Act, the British government launched a review of existing regulations in late 2020, with the aim to update them and guarantee the safety of vulnerable groups. Due to this, operators will likely have to implement tighter player verification and affordability checks going forward.
The land of sophisticated laws and extensive bureaucracy has just as detailed gambling regulation. Legislation introduced was strict, banning all online gambling activities. This changed in 2021, with the passing of the Interstate Treaty on Gambling, which introduced a new regulatory system for both online gambling and betting in the country.
Not only German operators, but the German Sports Betting Association (DSWV), claim that the new regulation, aimed to open the gambling market in the country, limits business activities majorly and call the German legislation the most restrictive. Germany, a country with a larger population than the UK, generated less gambling revenue in 2023 — only €4.8 billion compared to the UK’s €12.05 billion.
Restrictions include a bet limit of €1 on slots and a deposit limit of €1,000 per month, a mandatory cooling-off period, a prohibition on including famous sports personalities in betting advertising, a limited list of sports that operators can offer (the list excludes, for example, esports), and pages of other restrictions.
Detractors claim that the strict regulations are pushing players towards unlicensed platforms and offshore online casinos.
Gambling in Austria is regulated by the Law on Games of Chance (GSpG) and the Ministry of Finance, which is the responsible authority for the supervision of licensed companies. The online gambling market revenue is projected to reach $683 million in 2024, though the industry is monopolized.
However, there are exceptions: certain betting activities, games of chance with low stakes and games of skill — these are regulated by the Federal States of Austria locally.
International online gambling platforms cannot advertise in Austria and target local players.
The Österreichische Lotterien GmbH has a license to offer lotto, toto, goal betting, letter lottery, and scratch cards as well as electronic lotteries on the internet and via video lottery terminals. The Casinos Austria AG operates twelve casinos in Austria and offers various table games and slots.
The Swiss gambling market is projected to reach $1.76 billion by 2029. In 2023, land-based casinos generated CHF 623 million ($681.2 million) in GGR, which is 1.1% lower than in 2022. Online casino GGR grew 14.3% year-on-year, and made CHF 286 million in 2023.
In 1993, Swiss citizens voted to lift the ban on gambling, later, in 2019, The Gambling Act entered into force and introduced two types of gambling licenses. Holders of license B can only accept bets of up to 25 francs on slot machines, and they can also be obliged by the cantons where they are located to pay cantonal tax on GGR — these restrictions don’t apply to license A holders.
A share of the tax revenues from gambling businesses goes to old-age, survivors’, and disability insurance. In total, Swiss casinos have contributed over CHF 8 billion in taxes in the last 20 years, of which CHF 6.253 billion was used to fund the OASI, and CHF 1.056 billion was paid back to the cantons of type B licensees.
There is a limited number of licenses that the Federal Council and the Swiss Federal Gaming Board grant for a period of 20 years. Current licenses expire at the end of 2024, and the next licensees were chosen in a tender that accepted applications between 1 June 2022 and 31 October 2022. The decision regarding the newly granted licenses was made on 27 April 2022 — there will be 23 zones across Switzerland and 23 licenses, of both types A and B, valid from January 1, 2025, to the end of 2044.
All Swiss casinos are members of the Swiss Casino Association.
Ireland is another European online gambling market to consider for the future. Much like in the neighboring United Kingdom, sports betting and horse racing have a long history in Ireland and attract a large number of gamblers.
Land-based gambling in the country, however, is a muddy affair: while some sectors of the industry are clearly regulated, as is the case for lotteries and sports betting, many others are subject to unclear, conflicting legislation. For example, while commercial physical casinos are banned, so-called “private members clubs” have been established in the country thanks to a loophole in the law. These clubs are essentially small-scale casinos that require their clients to register as members (for free).
The outdated Gaming and Lotteries Act of 1956 and the Betting Act of 1931 were amended by the long-awaited Gambling Regulation Bill of 2022, which introduced the Irish Gambling Regulatory Authority (Údarás Rialála Cearrbhachais na hÉireann). Over €2 million were spent on establishment of the authority, however, by the time of writing this article in June 2024, the Gambling Regulatory Authority of Ireland is still not functioning, and the bill hasn’t entered into force yet.
What we know at the moment is that the bill will regulate both online and land-based gambling, betting, and lotteries (except the National Lottery) and define principles of protection of minors, problem gambling prevention, advertising rules, and other related issues.
As for online gambling, instead of a gaming license of Ireland, many operators choose to obtain a license in a jurisdiction with a clearer regulatory framework, and then apply for a permit to offer their services to the Emerald Isle’s residents. All of this could very well change with the introduction of new regulations, thanks to Ireland’s attractive corporate tax rates.
While land-based gambling in the Netherlands was regulated for years — the Kansspelautoriteit, the Netherlands Gaming Authority, was established in April 2012 and regulated gaming machines, betting, poker, bingo, and lotteries — online gambling was only legalized in April 2021, when the Remote Gambling Act (Wet Kansspelen op afstand, Koa) entered into force. The law defined games of chance online, introduced the licensing system, and set the safe gambling measures.
In 2023, the legislation was completed by the requirement to check players’ proof of income in case their deposit exceeds €700 per month (for players over 25 years old) and €300 (for players 18 to 24).
In May 2024 a coalition of seven parties suggested raising the gambling tax in the Netherlands from 30.5% to 37.8%, which wasn’t welcomed by the Netherlands Online Gambling Association (NOGA). The organization expressed strong concerns about the competitiveness of the legal gambling market compared to the unlicensed sector, and the accompanying risk to players’ safety.
The online gambling market revenue is projected to reach $1.19 billion in 2024.
Gambling in Belgium is regulated by the 1999 Gaming Act; this was amended in 2011 to accommodate for the rise of online gambling.
The Belgian Gaming Commission runs a closed licensing system. There is a capped number of licenses available for casinos and betting operators; a license to operate online can generally only be obtained if the operator already holds a land-based permit in the country.
These limitations make it extremely difficult for new operators to enter the market, and even more so for foreign companies. While the Gaming Commission can grant licenses to online-only operators acting in partnership with a land-based establishment, all nine permits to run online casinos are currently taken.
There is, however, a handful of licenses available for online betting operators.
This might very well be an option worth considering for investments: the online gambling market revenue is projected to reach $914.8 million in 2024 and $1.1 billion by 2029, and operations in this segment are subject to an attractive tax rate of 11% of their GGR.
Update:
From the 1st of June in Belgium, gambling operators will not be able to offer services to players under the age of 21. Another amendment was introduced in 2023 and will be extended even more in 2025 — the ban on gambling advertising forbids promoting gambling on television and radio, in newspapers and magazines, and in public spaces; later, sport teams sponsorships will be outlawed as well.
With a small but affluent population and the third-highest GGR per capita in the EU, Luxemburg could be an attractive country for iGaming operators. However, establishing an online gambling business in the Grand Duchy isn't feasible due to existing regulations.
While the 1977 Gaming Law tightly regulates land-based gambling, online gambling is mostly unregulated. The number of available licenses for brick-and-mortar casinos is formally uncapped, but Casino 2000 Montdorf holds a de facto monopoly. Similarly, per the 2009 Gaming Law, the Loterie Nationale (the local national lottery, organized by a non-profit public institution supervised by the government) is the only entity that can legally offer online gambling services.
Luxembourgish institutions consider these two monopolies a way to channel the desire to gamble into controlled environments, and they maintain strict player protection and advertising regulations to complement this regime.
Still, even if it’s not possible to obtain an iGaming license in the country, local authorities are known to tolerate EU-based operators offering services to residents of Grand Duchy.
France has some of the most comprehensive gambling regulations in Europe. The responsible authority, Autorité nationale des jeux (ANJ), became operational in June 2020, replacing its predecessor ARJEL.
Casino and card gaming are only allowed in licensed land-based establishments, except for poker, which can be offered by online operators.
There are two monopolies, Française des Jeux (FDJ) and Pari Mutuel Urbain (PMU). FDJ holds exclusive rights on land-based sports betting and all lotteries; PMU controls the land-based horse racing betting market.
Online sports and horse racing betting are open to licensed operators, but only on events selected respectively by the ANJ and the Ministry of Agriculture.
Taxation for online sports betting is on the heavy side: when combining the due levies, operators have to contribute a staggering 54.9% of their GGR. Online horse racing betting receives a different tax treatment, with a combined contribution amounting to 13.8% of the wagers.
The size of France’s online gambling market, however, makes up for the tax rate. With nearly half of the residents engaging in gambling in a country of 67 million people and GGR of €13.4 billion in 2023, which showed an increase of 3.5% compared with 2022, France is one of the biggest markets online operators can choose to enter.
When the House of Grimaldi was flirting with bankruptcy in the mid-1800s, Princess Caroline had the idea of opening a casino to replenish the treasury. The rest is history: Monaco became one of the world’s poshest seaside resorts, and the casino the largest source of income for the royal family.
Curiously, local nationals, which account for only a fifth of the principality’s population, are banned from playing at the casino. Online gambling is entirely unregulated, and no licensing process exists, leaving the market open for foreign operators.
Thanks to its ski resorts, the small principality in the Pyrenees is a mecca for tourists; it’s not surprising, then, that the regulation of land-based gambling has been on the agenda for years.
The Andorran government made it possible to apply for licenses to open brick-and-mortar casinos back in 2018 but has yet to award a single one of these.
Meanwhile, online gambling is not regulated or part of the public debate, which means locals are free to access foreign operators’ services.
One of the biggest in Europe, with a GGR of €350.7 million ($381.6 million) in Q1 2024, which is 15.1% higher than the previous year, Spain's decentralized gambling market is the peculiar result of the country's history in the past century. Gambling was decriminalized by royal decree as late as 1977, during the transition towards democracy. According to the 1978 constitution, gambling regulation isn't an area under the state's exclusive authority, hence each of the 17 regional governments can impose its own regulatory and licensing regime.
Talking about the Spain online gambling market, running an online gambling operation at a federal level requires a license issued by the central regulatory body, the Dirección General de Ordenación del Juego (DGOJ); on the other hand, all land-based operations, and online ones limited to specific autonomous communities, require licenses issued by the competent local authorities.
At the national level, gambling is regulated by Law 13/2011. Operators are required to obtain separate licenses for each general category of gaming they are interested in offering and for each specific type of game within those categories. Licensing fees start from about €45,000 for registration and auditing, plus €10,000 for each gaming category on offer.
Taxation for the sector was amended in July 2018 to lower the overall burden on operators and create a unified regime. The tax rate currently stands at 20% of the GGR, except for operators based in Ceuta and Melilla, where a 10% rate applies.
Later, in 2020, advertising regulation was tightened to protect minors: advertising on TV, radio, and YouTube was only allowed between 1am and 5am; promotional bonuses are prohibited; since 2021 celebrities cannot be used in gambling or betting advertising, sponsorships are also outlawed. Starting from 2022 companies can no longer refer to economic stability, social status, physical or mental health in their advertising, suggest inviting family members and friends to play, show luxury goods or money.
Ultimately, however, the majority of these restrictions were overturned on appeal lodged by the Spanish Digital Gaming Association (Jdigital). The ban on sports sponsorships remains in place, meaning that operators are banned from sponsoring sporting events or other events that could be viewed by minors.
Portugal has fully regulated land-based and online gambling markets. The industry still hasn’t fully recovered from the effects of the Great Recession; it has also been held back by exceptionally high tax rates for local operators since the introduction of a licensing system in 2016.
The above is reflected in a problematically high market share for unlicensed operators, which can offer players better odds.
Gaming is regulated by the Serviço de Regulação e Inspeção de Jogos (SRIJ). The legislative framework comprises a series of decrees that update Decree-Law No. 422/89, with the most important being Decree-Law No. 66/2015, which regulates the licensing system.
The state-run Santa Casa da Misericórdia de Lisboa (SCML) has a monopoly on lotteries and parimutuel sports betting.
Operators can obtain licenses to offer casino gaming, fixed-odds sports betting, mutual and fixed-odds horse racing, and bingo.
Fees start at €12,000 for the issuing of a license (except for bingo, which costs €2,000), plus €18,000 for the approval of the technical systems. Further fees are due for the approval of each type of game on offer.
The tax rate for online casinos is fixed at 25% of GGR, while for betting it amounts to 8% of the turnover.
Italy's online gambling market regulatory framework for online gambling is a patchwork of laws developed over the past two decades, widely considered to be one of the most thorough in the world.
Enforced by the Agenzia delle Dogane e dei Monopoli (ADM), it features stringent regulations for both operations and advertisement to provide a high degree of protection for players.
Local licenses are non-renewable, have a predefined period of validity, and can only be acquired through a tender process, open whenever deemed necessary by the government. With a starting price set at €2.5 million in the current tender, licenses are extremely costly; by acquiring one, however, operators gain access to the largest gambling market in the European Union.
Lotteries are subject to a private monopoly, but licensed operators can offer pretty much any other form of gaming and betting.
Taxation varies between 20% and 25% of the operator’s GGR, depending on the specific type of game offered.
Update:
In January 2024, the Italian government confirmed approval of the Reorganization Decree suggested by the Ministry of the Economy and Finance (MEF), which will be the first amendment since 2011. The goal is to protect players, combat criminal activities, and increase tax revenue for government projects and social initiatives. There will be an authorisation fee of €7 million for each online gambling license, and an annual fee of 0.2% of the net revenues. The decree also suggests combating illegal gambling and blocking unlicensed platforms.
The online gambling market revenue is expected to reach $3.21 billion in 2024, and the number of players is projected to reach 3.4 million by 2029 — this makes Italy an even more attractive market for online operators.
The tiny Republic of San Marino is home to a partially state-owned casino named after the mountain it sits atop – Mount Titano. Land-based gambling is regulated by the Ente di Stato dei Giochi, which also has a monopoly on the exercise of all related activities; no online license has ever been issued.
In line with the Catholic Church’s stance on gambling, the Holy See formally placed a ban on the opening of gaming establishments, both land-based, online, and on ships flying the Vatican flag, with 2013’s Law XVIII.
We’re as baffled as you are.
Possibly the most renowned gambling jurisdiction in the world today, Malta was the first European Union member state to adopt a set of online gambling regulations – the Remote Gaming Regulations of 2004.
Thanks to this head start and an attractive tax system, the Mediterranean state cemented its position as the go-to jurisdiction for operators seeking a reputable license issued within the EU.
The existing laws were revised and consolidated in the 2018 Gaming Act, which is complemented by a series of regulations and directives issued by the Maltese government and the Malta Gaming Authority (MGA), the local regulatory body.
Applications for licensing are accepted on an ongoing basis. The cost of a license starts from a fixed annual price of €25,000; to this, operators have to add a monthly variable contribution calculated on the gaming revenue generated, capped at €600,000 per year.
The taxation regime, as already mentioned, is particularly advantageous. Designed to minimize the effects of double taxation on operators, the amount due is equal to 5% of the revenue derived from players located in Malta.
Gambling in Europe is a massive and attractive industry. With plenty of countries to choose from, each with a complex set of regulations, starting an online casino or sportsbook can be daunting. Thanks to our experience in iGaming, we at Slotegrator can assist you in choosing the right market for your business and guide you in the process of acquiring a local license.
