US vs European iGaming Industry: Comparison

The iGaming Market is seeing a global expansion, with the European and US industries experiencing growth. Despite some similarities, there are also notable distinctions between the iGaming industries in Europe and the US. When it comes to gambling online, the major difference is the legal status and market size. This article will compare the US and the European gambling industries.

US iGaming Market

When it comes to internet casinos, only a few states legalize online gambling. The Wire Act of 1961 prohibits interstate gambling, meaning all gambling operations must be within the state and affiliated with a physical platform. All bets and transactions must occur within the state’s borders. Despite efforts to repeal the act, it is believed to remain in place.

In America, the iGaming market was relatively quiet in the first half of 2022, with less expansion in territorial markets than in 2021. However, the industry saw significant changes in the second half of the year and is expected to improve in 2023. California, one of the largest and most influential economies in the US, is considering legalizing online gambling; this move will boost the American online gambling industry.

Competition Among Offline and Online Casinos

Competition between offline and online gambling in the US varies depending on the state and its regulations. In states where online gambling is illegal, players resort more to offline bets. While in states where online gambling is legal, both land-based and online gambling platforms are legal. The review by iGamblerMi.com shows that in states where there are both online and offline iGaming, there is still a significant number of offline casino players; however, the online seems to be gaining momentum and is set to outnumber the offline counterpart.

How the iGaming Business Interacts with Other Businesses

One of the main interactions between iGaming and other businesses is payment. Payment platforms such as credit card companies and e-wallet providers are beneficiaries. These companies are responsible for processing transactions and allowing people to deposit and withdraw money from the platforms.

Another key interaction is with software providers. They help develop the games and platforms. Software providers may offer other services like customer support, marketing, and analytics. According to iGamblerPA.com’s online casino guide, iGaming businesses also interact with advertising companies because these iGaming businesses advertise online to promote their products and attract new customers. These businesses that iGaming interacts with help with its operations in one way or the other.

Growth Prospects of the iGaming Market in the US

In the US, the gambling market is expected to experience a significant boost. The gradual legalization of online gambling in some states and the expansion have significantly boosted the market opportunity for internet gaming and increased gambling revenues. The COVID-19 pandemic also accelerated the shift toward online gambling. This meant gamblers in the US could stay home and play popular games without going to a land-based casino, creating more diverse gambling options. They can stake online sports betting, table games, betting bingo, poker, and other casino games right from the comfort of their home. However, the growth of the market will also depend on the regulatory environment in each state and the competitiveness of the market.

European iGaming Market

The iGaming industry in European countries has seen significant adoption and continues to attract attention for its size and success. It is not an exaggeration to say that the Market is experiencing rapid growth. Gambling in Europe is a significant player in the global industry, accounting for almost half of the worldwide market share. This is driven by an increase in Europeans choosing online platforms over playing offline. The continent’s market share currently stands at 23%—this is a significant figure. Predictions indicate that the online gambling revenue generated in Europe will exceed $100 billion in 2023.

What Countries Have The Most Revenue From The iGaming Industry

The United Kingdom online gambling companies had the highest gross gaming revenue (GGR) in 2020, with 16 billion euros. Italy followed in second place with 13.2 billion euros; the Netherlands came in last with a GGR of nearly 3 billion euros. This goes to show that the gambling market in Europe is increasing. Countries benefit from tax revenue from the total money generated from the gaming market.

Gambling Laws in Different Europe Countries

The gambling industry in Europe is licensed and regulated by a number of gambling and lottery boards. In Britain, for instance, the UK gambling commission regulates lotteries and all forms of online gaming. The aim is to give licenses to all casino websites in the United Kingdom. Here are some countries where iGaming is legal in Europe: United Kingdom, Malta, Denmark, Spain, Italy, France, Belgium, Ireland, Portugal, Germany, Hungary, Netherlands, and more. The laws surrounding iGaming in Europe can vary significantly. Also, the online gambling options, whether it is electronic gambling machines or mobile online betting, determine the legality status. Please note that laws and regulations are subject to change, and it’s always best to check with the local authorities for the most up-to-date information.

Growth Prospects of The iGaming Market in Europe

The internet betting market in Europe is expected to experience significant growth. The market is driven by a combination of factors, including an increase in internet penetration, the legalization and regulation of online gambling, and the growing popularity of mobile gaming.

Additionally, the influence of the 2020s lockdown has accelerated the shift towards online betting in Europe and the global online gambling market. According to a report by ResearchAndMarkets, the European gambling market is projected to reach a value of €32.96 billion by 2026, increasing at a CAGR of 9.5% during the forecast period from 2020 to 2026. The UK, Germany, and Italy are expected to be the largest iGaming markets in Europe. One significant factor that is influencing the adoption of internet-based betting platforms is the comfort it offers users. They don’t have to go through the stress of going out before they can bet, right from the comfort of their home, they can play games.

Conclusion

The online gambling industries in Europe and the US both have similarities and differences. Both regions have well-established gambling commissions that regulate and oversee the industry. However, Europe has a more developed and mature market than the US. Additionally, the US has a patchwork of regulations across the country, whereas, in Europe, there is more uniformity in laws and regulations. Despite these differences, both regions have seen significant growth in the online gambling market in recent years.

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