The European iGaming market grows at a CAGR of 14.08%, estimating $114.62 billion in 2025.
The European iGaming industry is a recently emerging market that was born as a result of the digital wave that swept across the globe. Beginning in 1994 with the Free Trade and Processing Act passed in Antigua and Barbuda, online betting is still a relatively new sector of adult entertainment. It encompasses all kinds of internet-based gambling and betting such as online casinos or sportsbooks.
The culture of gambling has existed in Europe for centuries. It can even be traced back to ancient Greece and Rome, when people played with ordinary objects like shells and dice. Gambling has always been an activity common to people from all sections and classes of society.
The 17th century is also an important period for betting culture. The first casino in the world was built in Venice in the 1600’s. In Finland, lotteries emerged as a popular form of betting, along with card games and games of chance played by the nobility. Betting on sports and horse racing has historically been a popular activity in countries like the UK, and in some places it is seen as a way of socializing and fostering community.
There are several reasons for the newfound growth of the industry: the emergence and accessibility of the internet, and smartphones becoming available to everyone and now being widely used across the globe. The digital revolution has taken payment systems in stride, and now people can send money from their phones halfway across the country in a matter of seconds.
Several countries have, in recent years, taken steps to control the industry so that they can promote its development while protecting consumers’ rights. This is done through various laws and regulations for licensing, security and payment systems. Knowing that their government has taken steps to ensure their safety allows people to engage in online gambling without fear of financial scams or leaking of personal data.
Another reason for the rising popularity of iGaming in Europe is the emergence of industry events such as conferences, exhibitions and summits. These are an important way for professionals in the industry to build networks and exchange knowledge.
These events are opportunities for professionals and authorities to get together to discuss various things: the future of the industry and their plans for its growth, opportunities in underrepresented areas, common issues faced by those in the industry and upcoming innovations or breakthroughs. Some highly anticipated European iGaming events this year are the SBC Summit Lisbon, SiGMA Central Europe and SiGMA Euro Med.
This whitepaper aims to analyze and report on the regulatory frameworks in potential or current markets, frequent payment methods, popular region-wise betting activities and trends and how KodeDice can help operators capture European markets.
Online Gambling Regulations and Licensing
Regulation of online gambling in Europe started in the early 2000’s, which has given governments significant time and opportunity to strengthen and optimize their regulatory frameworks. Several countries have introduced advertising laws and responsible gambling measures to minimize risk for players. The taxes, levies and fees gained from the iGaming industry have also become a significant source of revenue for these countries.
1.1 iGaming in Malta
Malta is considered a haven for online casinos and opens up great opportunities for operators looking to enter Europe. It has a strong regulatory framework and was the first member of the European Union (EU) to regulate online casinos. The Malta Gaming Authority (MGA) is in charge of licensing and regulation for all forms of gaming and although strict, is known for its consistency and clarity in upholding these regulations.
Online gambling in the country is regulated under the Lotteries and Other Games Act, 2001, and the Gaming Act, effective 2018. Licenses in Malta are known for being affordable, and its tax rate is one of the lowest in the EU. Malta has made itself extremely conducive for iGaming businesses as online gambling accounts for over 13% of the country’s GDP and provides work opportunities to thousands of citizens.
1.2 iGaming in the UK
According to Statista, the UK’s gambling market is expected to reach US$28.86 billion by the end of 2025. Online gambling is regulated by the Gambling Commission through the Gambling Act 2005 and the Gambling (Licensing and Advertising) Act 2014, which was an amendment of this previous act.
Last year, in the wake of the Gambling Act review white paper published in 2023, the government unveiled several legislative changes for consumer protection, which were implemented in four stages until February 2025. These changes include recurrent reviewing of deposit limits and transparency in operators' customer funds protection. In April this year, the government also introduced a statutory levy to fund prevention initiatives for gambling-related harm.
1.3 iGaming in Italy
Online gambling was legalized in Italy in 2011 through a legislative decree by AAMS. The Customs and Monopolies Agency (ADM) is the license issuing and regulatory body for online betting in Italy. In 2018, legislation known as the ‘Dignity Decree’ prohibited all kinds of gambling-related advertising, which heavily impacted sports industries that thrive on sponsorships from betting companies; the government is now considering lifting this ban.
This year, the ADM updated licensing requirements with higher standards and licensing fees. A self-exclusion registry has been introduced, and steps are being taken to reduce compulsive gambling and encourage healthier habits, especially in the youngest age bracket. The government is also increasing taxes to allocate funding to addiction support and other sectors. These recent changes from the Italian government suggest that it is raising the bar for iGaming companies in order to protect its citizens from gambling-related harm.
1.4 iGaming in Sweden
With the Swedish Gambling Act that came into effect on 1st January 2019, online betting finally began getting regulated. The Swedish Gambling Authority or Spelinspektionen is the regulatory body and issues licenses and permits for operators. Its areas of focus are anti money laundering (AML) protocols, responsible gambling measures and the elimination of illegal gambling in the country.
Offshore operators that do not have a Swedish licence are not allowed to advertise or offer their services to Swedish citizens. The Swedish government is taking steps to outlaw the use of credit for online gambling; a step it hopes will reduce the risk of financial harm and increasing debt for customers. The government will also be reviewing the Gambling Act and taking measures to address a legal loophole that allows illegal operators to provide services in the country.
1.5 iGaming in Denmark
Online gambling is mainly governed by the Danish Act on Gambling, created in 2020. There are several other executive orders that supplement it, such as Executive Order no. 1274 on online casinos, Executive Order no. 1276 on online betting, and many more. The regulatory authority is the Spillemyndigheden, or the Danish Gambling Authority, formed in 2000. Its primary duties include issuing gambling licenses and supervising the entire industry and ensuring responsible gambling.
Recent amendments to the Gambling Act came into effect early this year: B2B online game suppliers require a licence to offer games to B2C operators, and B2C operators can only offer games from licensed B2B game suppliers. The government has introduced ROFUS, a self-exclusion register. Operators cannot advertise without a licence, and players are required to register their ‘MitID’ to participate in betting; this move helps combat underage gambling.
1.6 iGaming in Finland
For years, the Finnish government has held a monopoly in the country’s gambling market. However, a new bill is making its way through Parliament to end the monopoly and open the market to other operators. This bill is expected to take effect by 2027.
It is currently legal for Finnish citizens to access foreign online gambling platforms, and these platforms are not subject to sanctions simply for accepting these players. But with this new bill, it will be mandatory for all operators looking to enter the market to comply with regulations and have the proper licences.
Other conditions in the bill include responsible gambling measures, identity verification to prevent underage gambling, self-exclusion and a new authority to oversee the regulated market.
1.7 Conclusion
While these stringent frameworks give European operators an extensive online gambling compliance checklist to fulfil, this is beneficial as it means they will have up-to-date security and consumer protection measures, which increases user trust.
Payment Methods
Europe has a mostly homogeneous market when it comes to payment methods. These range from newer and alternative methods like cryptocurrencies or e-wallets to more traditional methods like bank transfers and debit cards.
2.1 Payment Cards
Debit cards are a common payment option for online betting. Cards from providers like Visa and Mastercard are accessible to everyone while also offering quick, effortless payments. Card payments also ensure security through measures like 2FA (2 Factor Authentication) and fraud detection.
Debit cards also offer players convenience and familiarity and are seen as a viable option for budget-conscious players. Credit cards, on the other hand, are being banned in countries like the UK and Sweden due to the threat of financial risk and mounting debt for players.
Prepaid cards and vouchers are also gaining traction. This is due to several reasons: prepaid options offer players anonymity as no financial or personal details are required to use them for online betting. This also gives players more security. Prepaid options are widely available throughout Europe, supported by several online gaming platforms and more financially sustainable as players cannot deposit more money than the card/voucher has. PaySafeCard and Neosurf are common prepaid card options available in several countries.
2.2 e-Wallets
Digital/e-wallets are a popular choice in European countries. These have a reputation for fast transactions and withdrawals and allow players to instantly access their winnings or rewards. e-Wallets function as intermediaries, which leads to them being more streamlined than traditional methods; the player also does not have to directly use his/her bank account.
Digital wallets often support multiple platforms and can store payment information for various transaction methods. These platforms are also great options for P2P cross-border transactions, and players can check their transaction history with ease. PayPal, Skrill and Neteller are popular e-wallets used throughout Europe.
2.3 Bank Transfers
With the emergence of newer and alternative methods of payment, bank transfers are now seen as more archaic because of their slow speed and outdatedness. This method, however, is still known as one of the most secure and reliable methods of payment and withdrawal, especially when it comes to actual money.
Unlike some newer methods that require software updates and new compliance protocols from operators, bank transfers are available on every platform and allow every transaction to be traced. They are also better for making large withdrawals due to higher limits, and since there is no third-party platform during transactions, players have come to trust this method more. Commonly used bank transfer methods are SEPA, SWIFT and direct transfers.
2.4 Cryptocurrencies
The use of cryptocurrency for iGaming in Europe is a complex matter. The EU does not have a common framework that bans or allows crypto gambling; the decision is in the hands of individual member states. This has led to extremely varying stances on cryptocurrencies.
Sweden has not explicitly declared crypto gambling as legal or illegal, but providers that offer it are allowed to operate in the country so long as they have the necessary licence. In the UK, although crypto gambling is technically legal, several operators do not support the option due to having to adhere to strict AML and KYC protocols. Crypto gambling in Italy is a grey area as no regulations are in place for the use of cryptocurrencies for betting.
Malta has recently taken steps in favor of crypto gambling: the MGA (Malta Gaming Authority) has introduced a regulatory sandbox where operators can first test their blockchain-based products in a controlled environment before making them available to the public. It is now issuing specialized licences and introducing guidelines for the use of blockchain technology.
The EU is attempting to ban anonymous crypto accounts and the use of privacy coins such as Monero and Zcash as part of new AML regulations. This legislation is expected to come into effect by 2027 and will force crypto-asset service providers (CASP) to invest in stricter technological frameworks to meet the regulatory requirements. It also removes the element of privacy, which is a major reason crypto is preferred by players. But it will also increase transparency and reliability, which will make the market safer and more trustworthy.
Popular Games and Trends
3.1 Online Casinos
Casino games are especially popular because several of them have been invented and played for centuries within the continent. Online casinos in Europe are gaining attention due to the availability of variations and choices between automated or live dealer games according to individual preferences. Several online casinos are also available 24/7 and offer an immersive experience for the player.
Roulette is a table game that has been played in Europe for centuries. Invented in France, it had spread throughout Europe and even to the US by the 19th century. Online roulette is especially popular due to the variations and even the option of live dealer games. It does not require much skill, which makes it easy for beginners. Additionally, European roulette gives players better odds compared to the American version.
Much like roulette, card games are a time-honored tradition. Arguably the most favored card game throughout Europe, blackjack is found in every casino, both online and offline. It is simple to understand, offers players better odds and is a fast-paced game. While it requires at least a little luck, blackjack also rewards skill with big payouts.
Baccarat is another well-known card game, especially for those who like high stakes and large bets. It is fast-paced and has simple rules as well as a low house advantage, which creates an opportunity for high returns. Aside from high rollers, baccarat can also cater to players with lower budgets. A variation known as punto banco, which originated in Italy and is a simplified and popular version of baccarat, is widely played throughout Europe.
In the UK, the online slots market is experiencing a surge in customers due to easy access, varying themes and user-friendly graphics and interface. In 2023, the revenue from online slots was estimated to be over $4.3 billion.
3.2 Online Sportsbooks
Sports betting, depending on crowd and region, can be both casual and in-depth. While some see it as a social activity, there are also bettors that will analyze all odds and chances for the best choices. This versatility has brought sports gambling great renown. It provides users with a lot of different options such as futures betting, fixed-odds betting and prop betting.
Horse racing has been around for centuries and amassed a great following in countries like the UK and Italy. In the UK there are multiple events in a year: the Royal Ascot, held in June every year, sees attendance from even the British royal family. The Grand National, which takes place in Liverpool, is the most famous steeplechase horse race. The Cheltenham Gold Cup takes place in March and is the first major race on the calendar every year.
In Italy, the Palio di Siena is held twice a year in Piazza del Campo, Siena. 10 out of 17 horses and riders, each representing a ward of the city, take three laps of the piazza. While there is no official betting on the event, it is still widely accepted for people to bet unofficially. The tradition of horse racing in Siena can be traced back to the 13th century.
Association football is the biggest sport in the continent due to its strong cultural ties and universal appeal. Several countries have their own national events while also participating in international tournaments. The UEFA (Union of European Football Associations) Champions League, European Championship and Europa League are the three biggest tournaments exclusive to the continent.
Betting on ice-based sports like ice hockey is extremely popular in Nordic countries like Sweden and Finland, with both countries constantly competing against each other. The IIHF (International Ice Hockey Federation) Ice Hockey World Championships are an annually held international men's ice hockey tournament. The NHL (National Hockey League), despite being an event held in North America, is immensely popular in these countries, with some of their players even participating in it. In recent years, NHL has also partnered with betting operators in the Nordic region. The SHL (Swedish Hockey League), the highest ice hockey level in the country, is also a popular choice for betting.
While it is not as popular throughout Europe, tennis has still garnered much attention in Italy. It is experiencing a resurgence due to the newfound success of players and the promotion of the sport among youths. The Italian Tennis Federation is also making a point to nurture young talent, and even aside from the annual Italian Open, there are several exhibition matches in the off season. Moreover, there are several types of bets to choose from, such as prop bets on players, over/under total points and even individual points, sets and matches.
3.3 Conclusion
Based on this list of regional preferences for online casino and sportsbook gambling activities, operators can customize their themes and content to appeal to local players. This is important for user acquisition and retention.
How KodeDice Can Help
KodeDice is an online casino and sportsbook development and solutions company that helps its clients achieve success by creating platforms that not only meet but surpass industry standards, while also making sure they are tailored to the visions of our clients.
We offer an extensive range of managed services including CRM, CMS and API integrations, aggregators and PAM interface. We make efforts to keep all our software solutions up to date on regulations as well as ensure strong security and risk management.
We also offer a versatile casino/sportsbook payment system that supports all kinds of payment methods, such as credit and debit cards, bank transfers, digital wallets and cryptocurrencies along with multi-layer security and respective fraud prevention protocols.
For more information, get in touch with us.