New gambling bill in Greece: setting sails for sustainable growth in the market

After nine years, the temporary gambling licences in Greece, based on the 4002/2011 law, will now be converted to permanent ones and new operators are already able to apply for such a licence in the Greek market. The long-awaited Greek gambling bill is ready, and the new era seems to be exciting since the growth of the GGR the last years has been impressive even though Greece generally has experienced tough financial times. The changes in the existing law were voted in October 2019 and after some months at the European Union’s TRIS system for comments from the other state members, it was enforced early August this year. Following nine years with a temporary licence regime, the new permanent law will add well-anticipated stability to the Greek market and hence make it more attractive for further actors to establish a position in the market. This will naturally bring more competition, which consequently will increase the offers and experiences for the Greek players.

Although the licensing scheme includes high fees that are among the most expensive in Europe, it seems that operators’ interest in the market remains at high levels. Operators need to pay a fee of €3m to acquire an online betting licence covering seven years. The licence for online games including e.g. casino and poker costs €2m. Also, a €500,000 letter of guarantee is required during the application process. Companies should have a minimum capital of €200,000 and be registered in Greece, or another EU or EEA member state. Operators blacklisted during the year prior to licensing cannot qualify for a licence. Operators will also be required to locate a safe server in Greece.

The Greek government estimated that the revenue for the initial fees amount to approximately €80m but it seems the government has exceeded the target as 19 operators applied for a full licence (sports betting and casino) which sums €95m already for the state, and most likely, more will follow from the new entries. The Greek market has grown steadily in the last years and that trend continues also for the H1 of 2020 where the GGR of online betting reached €232.2m and based on the current input from the operators that growth continues also for the first months of H2.

So far, all the existing 24 operators holding a temporary licence have already submitted for a permanent licence: bet365, Betshop, bwin, Championsbet, Gameart, Goalbet, Interwetten, Netbet, Novibet, OPAP (pamestoixima.gr), PokerStars, Rebels, Sportingbet, Stoiximan, Winmasters, Vistabet. Nordic focussed online casino and sportsbook operator Betsson and Russian betting brand Fonbet are new entrants to the market, having each applied for a two-way licence.

Overall, it seems that there is a great potential in the Greek market and that the growth experienced in the last years will continue. There are certain things that still need to be examined by the state and the HGC (Hellenic Gaming Commission) and getting improved in the next period. Among them I would consider the max bet (€2) in RNG games when at the same in the land-based casinos there isn’t any such limit, taxation (35% GGR), which is high considering that operators have to pay €5m for a licence (one of the biggest in Europe), and the ban in advertising in RNG (although live casino can be advertised without any constraint).

Although, despite the above-mentioned issues, I would say that operators joining the market at that time, will have more time to establish a better position in the landscape moving forward. As for the affiliates side, the new bill enforced a new licence in order to be able to work in the new landscape with a total cost of €1,000 per company. Better Collective is the leading affiliate in the Greek market with its flagship, Betarades.gr while also operating other specialised assets. Based on the feedback from affiliates it seems that the licence fee will not be an obstacle to stop their current business.

We look forward to the new era which will ensure stability and sustainable growth in the Greek market.

Kyriakos Fourniadis is managing director for Greece & Romania at Better Collective that operates the leading Greek and Romanian platforms Betarades.gr and PariuriX.com. He has over 12 years of experience in the igaming industry planning and implementing acquisition strategies, launching new products and executing strategy. Prior to his current role at Better Collective he was the founder of the Greek entity which Better Collective acquired in 2018.