It’s been a very eventful year for the sports betting industry across Europe. Now that we’re approaching the start of 2023, it’s a good time to take stock and analyze this year’s standout performers – as well as the markets to watch in the year ahead.
Starting with Southeastern Europe, we’ve seen a strong trend of online sportsbooks reaching mass adoption in growth markets such as the Balkans, and we expect this to continue in 2023.
The World Cup, of course, has been a serious catalyst for further adoption, especially following recent regulatory changes. Once the tournament ends, the true test of this popularity will be whether it holds strong with the return of the main football leagues.
In my opinion, providers that can deliver responsible entertainment are going to achieve great success over the next year.
Take Bulgaria, for instance. It’s expected to be a real trendsetter for the Balkans over the next five years in terms of total turnover and GGR. That market continues to strengthen, and there’s no doubt others in the region will aim to replicate that success.
Sports betting revenue currently stands at over €260 million for 2020, with projections exceeding €850 million by 2026.
It’s reasonable to assume that the key to this success has been the strong level of trust between bettors and sportsbooks in the market – so, if neighboring countries can replicate that brand value, this is certainly a jurisdiction to keep a close eye on.
Second in the Balkans is Romania – like Bulgaria, it has every chance of becoming a regional powerhouse. With some of the fastest internet speeds in Europe and a population nearing 20 million, the last seven years since regulation have seen Romania grow into a major player.
With projected GGR similar to Bulgaria’s over the next five years—despite some fluctuations—the ONJN has proven to be a fair regulator, with strong player protection values and enough flexibility to let operators adjust to market dynamics.
Last year alone saw close to 250,000 new Romanian customers enter the online space. If this pace of adoption continues during this year’s World Cup, by January 2023, we’re likely to see another wave of impressive success.
The final gem in the Balkans crown is the Czech Republic, which is also a market to watch. In 2021, a historic shift occurred in the country’s gambling industry: for the first time, operator revenue from online gaming surpassed that of land-based operations.
Based on data from the Ministry of Finance collected through tax reports, revenue from online gaming totaled €886m, while revenue from land-based operations reached €706m.
According to statistics, the Czech Republic’s online gambling market ranked 10th among all European nations by revenue share, with growth just under 50%. When examining the share of different gambling products in national markets in 2020, sports betting led with approximately 48% of GGR, followed by casinos at 40%, lotteries at 10%, and poker at 2%. The market trend in the Czech Republic is clear: as of the end of 2016, there were 70 licensed land-based operators managing over 4,000 establishments – which signals strong potential for continued online growth.
At the end of 2016, there were 11 licensed online gaming operators, and that number is expected to grow. By June 2022, there were 20 licensed online gaming operators.
Altogether, these three markets have a combined population of 36 million, making them a powerful bloc to watch!
Lastly, the Netherlands is a market that shouldn't be overlooked. Still in the early stages of regulation, having only launched this year, there's strong potential here for the right operators—especially given the bonus-related restrictions, such as cashback limitations.
In many ways, this can actually benefit the market, serving as an effective filter to eliminate weaker entries and allowing only the strongest operators to thrive. Market margins will be tight, but this will ultimately help distinguish serious contenders from the rest.
In conclusion, the outlook for the industry suggests it’s going to be a survival of the fittest scenario. The decisions made next will determine who succeeds—and it’s possible that some may start to second-guess going public.
Privately held companies that are nimble and able to pivot quickly will likely come out on top, particularly if they aren’t constrained by external shareholders.
Acting fast and adapting swiftly to these rising European markets will be crucial—if executed well, 2023 could turn out to be a highly profitable year.
