European egaming underperformed in 2013, research shows
Gambling consultancy GBGC argues its 6% growth prediction for Europe's egaming market represents a poor performance in 2013
The online gambling sector has continued to grow during 2013 however not at the rate it could have, according to a report published by Global Betting and Gaming Consultants (GBGC).
The consultancy said the 6% growth it forecasted for Europe’s egaming market this year should have been greater considering the proliferation of dot.country regulation.
Jurisdictions such as Denmark and Spain are recent converts to a ring-fenced egaming framework, and GBGC argued that while a 6% growth figure seems healthy when the Eurozone economic performance is taken into context, the market has still flattered to deceive.
In Spain, it said high tax rates operators are paying on revenues mean the sector’s growth is being stunted. That has been compacted by the lack of slots and exchange products permitted in the country, however that is set to change next year.
The report found that with 57% of European online gambling revenues now originate from regulated markets, representing a 2% increase on last year’s figure but below the expectations of GBGC.
“The fact that 43% of revenues are still coming from offshore jurisdictions suggests that the new regulatory models have not worked,” it said.
GBGC also highlighted poker’s continuing decline throughout 2013 as a contributing factor to slow growth, with the vertical predicted to have fallen 4-5% over the course of the year.
The company predicted 2% growth for online poker next year, however added that it expected the vertical to be flat in subsequent years.
Looking into 2014 GBGC predicted an improvement in the overall egaming growth rate, primarily due to it being a World Cup year but also as more European countries move to generate much needed taxes from online gambling operations within their borders.
“The football tournament in Brazil will provide a marketing boost for sports betting companies and will help increase the number of new accounts that are opened. Some surprise results in the tournament would also help gross win margins,” GBGC said.