Online gambling regulations in EU & UK

One of the biggest benefits of regulatory compliance is platform development. Many regulations push operators to develop their platforms, be it enforcing strict identity verification methods or secure data storage.

Many regulations work directly to benefit operators. There are many regulations which enforce strong anti-money laundering and security processes and help operators avoid being victims of fraud and enabling money muling.  

Being compliant with regulations in strict markets like Europe is a huge step to being ready to enter new markets. By meeting requirements set out by regulators, it should be easier to meet many regulations in new and developing gambling markets.

The goal of regulators is to make the gambling market a safe and fair place for both operators and players. Many regulations serve to encourage operators to reduce risk – for example by requiring development of data storage systems where it is almost impossible to permanently lose vital data.  

Many regulations serve to protect players as much as operators. Things like anti underage gambling or player gambling control tools are beneficial processes put into place through regulations and if implemented well show the public that operators care about their players.

Operators can face many legal issues through Online Gambling and regulations go a long way to avoid just that. For example, underage gambling prevention regulations help operators avoid legal issues by ensuring there are proper processes in place to stop underage gambling.

Gambling in the United Kingdom is regulated by the Gambling Commision, who acts as the core regulator and authority for gambling in the country. The UK’s gambling laws are based on the Gambling Act 2005, but proposals for change were included in a 2023 government white paper. Said changes are predicted to come into force by mid 2024.

Europe is one of the biggest online gaming markets in the world, having generated €24.5bn in gross gaming revenue 2019 and it is expected to generate €31.2bn by the end of 2022. The UK makes up the biggest market share, with over 30% of Europe’s online gambling market revenue, followed by Germany and France, according to The European Gaming & Betting Association.

There are positive signs for the iGaming market in Europe and the UK. It saw a 19% increase from 2020 compared to 2021 across Europe and continues to be widely adopted.

Online gambling is expected to see steady growth over the next few years, with gross gaming revenue forecast to rise from €31.2bn by the end of 2022 to €52bn by the end of 2026. Meanwhile land-based gambling is expected to remain fairly stagnant.  

Online gambling in Germany is regulated by license issuers or individual states, rather than one overarching regulator. With that being said, all states have agreed to a key agreement, Glücksspielstaatsvertrag (aka the State Treaty on Gambling), which outlines rules and regulations that will be consistent across the country.

The aim of Glücksspielstaatsvertrag is to set out a basic standard, focusing on player protection and allowing citizens to gamble online in a safe way.  

Online gambling is a rapidly growing industry, with new markets emerging all the time. One of the most recent emerging markets is Ontario, Canada. The Canadian Gaming Association estimates that there are currently over 2 million online gamblers in Ontario alone. This number is only expected to grow in the coming years.
There are numerous reasons why Ontario is an attractive market for online gambling operators.

First of all, the province has a large population. Secondly, it has a relatively high household income. Finally, there is a growing interest in online gambling among the general population. As more and more people become aware of the advantages of online gambling, it is likely that the market will continue to grow in Ontario and other parts of Canada.