iGB Intelligence reports | Page 64

Chapter 2: Market overviews SNAPSHOT Eastern Europe Largest population Russia Largest income (by av income/PPP) Russia Largest GDP Russia Best economic outlook Russia Highest TV households (% penetration) Russia Highest broadband penetration (by number of users) Russia Highest mobile penetration (per 100 inhabitants) Russia Biggest gambling market (by value) Russia SNAPSHOT Southern Europe Largest population Turkey Largest income (by av income/PPP) Greece Largest GDP Turkey Best economic outlook Greece/Turkey Highest TV households (% penetration) Greece Highest broadband penetration (by number of users) Turkey Highest mobile penetration (per 100 inhabitants) Greece Biggest gambling market (by value) Greece/Turkey Overview The revenue of the gaming market in Southern and Eastern Europe is estimated at about €10bn, with a great growth potential in the next few years. The popularity of gaming (and especially sports betting) among a population of approximately 380m people, coupled by the recent entry of many countries into the EU are the main factors that drive this potential. Digital gaming offers interesting opportunities in most parts of Southern and Eastern Europe, with countries such as Romania, Slovakia, Slovenia, and the Czech Republic embracing the digital gaming revolution by allowing companies and operators other than the national lottery to request and hold licences. For example, the appealing Romanian market has recently become the target of large online gaming operators. In just three months, 13 operators have received their provisional licences. This number seems to keep growing and by the looks of it, the Romanian digital gaming market has already surpassed the Bulgarian market and will keep growing. There is a strong propensity to gamble among many of the citizens in Eastern Europe. These people culturally enjoy gambling and that has been denied in its regulated form. Whilst there was no stability in these Eastern countries in the past, gambling laws kept changing and encouraged monopoly or oligopoly. These policies drove away most gambling operators. However, most countries from Eastern Europe allowed digital gaming starting from 2010 (with the exception of Montenegro – with the 2004 law) and things have started to go in the right direction. Why is Eastern and Central Europe perfect for gambling giants? The portrait of the gambler from that region says it all: low income and avidity for high returns, meaning that he/she is willing to play a larger percentage of its income and has a penchant for high risk – high reward games, where luck predominates, unlike Westerners or Northerners for example, who prefer games such as poker or bet for fun. Digital Sports Betting 57