Gaming Revenue in Europe Down 23% in 2020
As the global COVID-19 pandemic continues to rip through industry and the fallout of its effect on the gaming sector becomes known, it has been revealed that gaming revenue fell by almost one quarter this year.
The European Gaming and Betting Association and H2 Gambling Capital have reported a 23% drop in gross gaming income from €98.6 billion to €75.9 billion. This figure covers revenue for gaming companies in The UK, along with the other 27 EU territories.
Online Leading the Way in Time of Crisis
The EGBA study does also include some good news. Reports suggest that online gambling income in Europe may prove to have grown by around 7%, from €24.5 billion in 2019 to €26.3 billion in 2020, owing to an increase in players going online during the Coronavirus crisis.
However, the cancellation or postponement of major betting streams such as the Kentucky Derby, the Grand National and many major football games and other sports events has been to blame for the overall fall.
Land-based gambling declines have reached around 33% year-on-year, resulting in revenue falling from €74.1 billion in 2019 to €49.6 billion in 2020.
Room for More Improvement in Some Countries
Even without the hope of an effective vaccine for COVID-19 and travel restrictions being eased around Europe, growth is expected in the online gambling trade. Revenues are forecast to increase by around 7% to ultimately make up approximately 33% of the continent’s overall gambling income by 2025.
The study put forth by the EGBA also indicates that mobile gaming will grow to represent some 45.6% of overall gambling revenue online, ultimately getting to more than 50% by 2020 and therefore bypassing income raised by desktop customers for the first time.
Like many other sectors, the gambling niche in Europe has suffered during the pandemic; specifically, online-focused revenue streams continue to thrive.
In major European territories not previously thought of as major gambling markets, such as Germany, Italy, France, and Spain, income is steadily rising and may one day reach the levels seen in places such as the UK and Ireland.
EGBA Members Report Figures
As well as reporting on overall revenue and publishing projected figures for the next few years, the European Gaming and Betting Association has also shared information supplied by some of its member operators.
bet365, Betsson, William Hill, and others have shared details, including customer information, games in use, market values, sports investments, regulatory compliance, and licensing. Member companies had a total online membership of some 16 million people who had an average return rate of 94.3%, with losses on average therefore kept fairly low.
63% of customers within the group report using at least one safer gambling tool, a big increase, though member companies are still striving to get better with their social responsibilities. The 16 million-strong customer base also shows that many more people are yet to play and spend online, despite the figures coming from just a small sample of licensed betting companies in Europe.
Members of the EGBA reported combined online revenue of €5.6 billion overall and are said to have invested €340 million in sports on the continent via sponsorships and live streaming rights.
It is very much hoped that compliance gets even better over the next year, and more is invested back into the sports that clear still make European gambling companies a lot of money online.