One of the biggest markets to experience exponential growth over the last decade is the European gambling market, with the largest proportion of that growth accountable from online platforms becoming ever so popular. More and more individuals choose to play casino online games due to their convenience and play on the go nature. The market is now set to be reaching the billions every year in revenue meaning it is really one of the most lucrative industries in the market.
What has been the key driver of such growth: access of the internet has entered more and more territories, regulations around gambling markets have also being a bit more relaxed due to the governing bodies that regulate it making it a much more safer environment than previous but also the advancements in technology have significantly propelled the integration and entertainment online casinos bring to people’s lives. After such a lot of change over what is actually a short period of time, the challenge remains on how this market can continuously innovate and stay competitive within a saturated market. This is not to say there are not growth areas, but navigating this growth will determine success or not to those challenges.
When it comes to advanced gambling markets, the European gambling market is one of the most mature and regulated globally. Some of the biggest countries leading this are the UK, Germany, Spain and Italy. The UK by far leads in terms of size as it is heavily supported by a critically structured framework to regulate it and has a high adoption rate from the population. By comparison, Germany has only just begun to relax some of their online gambling laws, meaning the adoption has been slower but also that there are areas of growth.
Despite all the advancements the European market has seen over the last decade, the market’s regulatory environment is still complex and fragmented in parts. Every country has their own set of rules and laws that govern online gambling, making it challenging to navigate. For example the UK Gambling Commision is very strict when it comes to regulations and guidelines, yet countries like Germany and Italy have started to develop clear guidelines that work in favour of online gambling.
The Pivotal role of technological advancements
Do not underestimate the power of technology when it comes to the expansion of European gambling markets. With each iteration of smartphone and internet speeds reaching faster than you can think of what it is you need next, it has made it easier for people to play via online casinos than ever before. Mobile gaming on its own has experienced vast growth, with many operators now taking a mobile first approach when it comes to development to cater for the ever increasing numbers who prefer to gamble on the go. This sums up the nature of our society as a whole now, people want things faster, more convenient and to take the hassle out.
To add to this, the advancements we are now seeing in artificial intelligence, blockchain, VR and AR are likely to lead to significant growth in the future of online gambling. AI is already being significantly utilised, whether players realise or not, to enhance the customer experience with personalised recommendations and chatbots to be on hand 24/7. VR is opening up new possibilities for those who prefer a more immersive gaming experience and blockchain technology could end up revolutionalising payment methods of online platforms as they promise transparency and security.
Blockers to future growth
It is easy to point out where there are areas for potential growth within the European gambling markets, however they do also face a number of challenges. Regulation changes that are tightening advertising restrictions of gambling operations and the implementations of stricter laws could see growth slightly decline as a result. Online sites rely on the ability to advertise to grow their customer base and also increase game play of their existing customers through offering promotions.
Market saturation is also a prominent problem, with so many operators competing now for their share of the market, they are experiencing smaller profit margins and increased costs due to the need to innovate to stand out being even greater of a need. To really segment themselves in the market, companies must rely on heavy investment of marketing strategies, technology and customer relations to give better services and offer better than their competition promotions.
Though there is much room for growth within the European gambling industry, navigating this growth needs to be strategic to stay ahead of the game.
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