Executive summary
Executive Summary
Europe keeps swinging Proof of industry’s position…
Despite the attention of the online gambling Individually and taken together they provide
world – or at least the sports betting part of it all the evidence that prospective regulators
– now being fully focused on the opportunities should need that sensible regulation can lead to
popping up in the US, the regulated online a decent tax take. Such would certainly seem to
markets across Europe have continued to grow the case with Spain, where the most recent news
away from the industry spotlight. has provided the rarity of a tax cut, with the tax
The eclipse of regulated Europe might be a
on most products lowered to 20% from 25%.
slight exaggeration. Still, there are lessons to With Sweden set to launch with an 18% tax rate
be learned for all participants from some of the in January next year, the sector would appear
general trends that have emerged within the past to be winning the argument with regard to the
six months or more across some of the major equilibrium to be struck between the government
markets in Europe that are worth highlighting. coffers and the rate of channelisation achieved in
any given market.
Boom time
One such trend is the growth rates being seen …but not all regulators take heed
in markets as diverse as those covered in this However, this argument is slightly upset by the
report, namely Denmark, Spain and the UK. potential within the UK for the online gaming
In year-on-year terms, Denmark’s total gross tax rate to be heading in the other direction.
gaming revenue (GGR) rose 16.5% in the first The particulars of the UK’s move are not as
three months of the year. In Spain, the market important as is the reminder that tax rates in
growth rate was nearly 29% for the first quarter. any given jurisdiction are always liable to change
Meanwhile, in the UK a lthough we don’t have and that mostly these changes will be negative
quarterly figures, the assumption from analysts for the industry.
within the sector is that the market overall is likely
still growing at between 8-10%, moderately down
on the 20% growth seen previously.
These are healthy numbers and with the FIFA
World Cup held in Russia this past summer likely
to have provided an extra boost, the chances
are that the growth path in all three markets will
continue into the second half.
iGaming Business Market Monitor • UK, Spain and Denmark • September 2018
2