The local entertainment industry attracts lots of distributors, despite its strict rules and tax limitations. Western Europe makes up almost half of the world's gaming market. In this article, you will learn about the current conditions of the sector in several lands of the region.
Casino Market can assist you with obtaining a licence in a particular jurisdiction and opening a project there. Our managers will answer your questions and offer additional business services.
General Overview
Throughout recent years, the countries located in the west of Europe have become major gaming industry participants. A lot of regulators in the area have made the entertainment sphere legal by implementing licences.
This allowed distributors to become a part of the world's richest business sectors. It is a stark difference from the previous way of controlling the segment, which was based on a monopoly.
In this summary of the area's most prominent markets, we will look at both large influential and smaller, yet ambitious countries.
The United Kingdom
The gaming sector of England is enormous. Here are some statistics for this industry giant:
- 100,000 employees are involved;
- the GGY has surpassed £14 billion in 12 months;
- the all-time GGY makes 40% of the general market, reaching the £5.7 billion point;
- over the past years, the parameter has increased by 8.1%.
Gaming is a vital part of English culture, as almost 50% of adults regularly engage in this activity. Betting on sports has enough prominence, as the nation likes to watch competitions, especially football. Wagering on horses is also quite popular.
In 2005, the British gaming sector became officially regulated, and all operations were permitted. The yearly licence charges for web casinos are counted depending on the GGY of the particular company. Those with a permit also need to pay a tax of 21% of the general GGY.
Because of the technological advancements since the industry was first legalised, the rulers of the UK decided to reconsider the guidelines in 2020. The regulations were planned to be updated so that groups at risk would be protected. Because of this, distributors will need to carry out a more strict check of customers and see whether they can afford to gamble.
Ireland
There is a long and rich history of betting on athletic competitions and horse racing, which still attracts plenty of enthusiasts.
The land-based sector in this territory is quite tricky to navigate. Certain areas of the business have very clear and precise regulations, such as sports wagering and lotteries. However, numerous other sectors have rules that are not particularly direct.
For instance, there is a part of the law, due to which some physical places (private clubs) can exist, despite the general ban on these establishments. They have a lot in common with regular casinos and have a membership program for visitors.
Since the corrections to current guidelines could not give clarification, the rulers of Ireland have recently decided to conduct a reform. The outdated regulations trace far back to the last century.
Concerning web-based gaming, numerous distributors opt for a permit in other destinations with a clearer administrative structure. After this, they attempt to obtain a licence specifically in Ireland. With the arrival of new guidelines, this attitude could majorly change due to the appealing tax rates in the state.
The Netherlands
This is a country with strict regulations. Until recently, the industry was under a de-facto ban, with only a limited number of special cases to this rule. Two years ago, the recent rules came into effect, and the internet market was opened.
Distributors are now supposed to fill out an application for a permit. There is also a requirement for them to be based inside (one of the options):
- the EU;
- the EEA:
- any territory, the regulation of which is not conflicting with the standards.
There are some fees to pay for anyone who would like to establish their company on the market. The commissions fluctuate from €40,000 to €50,000. The taxes will add up to 29% of the overall GGR. The 1.75% of GGR will be given towards funding authorities of the region and the continuous fight against addictions.
The turnover of the area's gaming is right now around €2 billion every year. However, it may rise soon because of the internet-based market being launched.
Belgium
The thematic activities here are directed by the document of 1999. It was revised because of the growing popularity of internet gaming.
A special licence system is run by the country's authorities. The number of certificates for online establishments is limited. The permit to work online can be received only if the distributor already has a land-based permit to operate in the jurisdiction.
Due to these constraints, it can be challenging for local entrepreneurs to become a part of the market, not to mention foreign organisations. The official regulator can give permissions to distributors that work together with land-based organisations. However, all 9 grants to run web clubs are already taken.
There are a small bunch of permits which are accessible for internet wagering groups. This might be a choice worth thinking over: the online sportsbook market's GGR is near €138 million (which is equivalent to around 4/5 of the internet casino sector). It develops by 11.76% YoY (according to the 2018 information), and activities in this section have an alluring tax of 11% of the general GGR.
Luxembourg
Even though not a lot of people inhabit this land, it holds the 3rd place by GGR per capita in the European Union. Due to this, it is an alluring place for distributors. Still, laying out a web gaming initiative in this small country is not exactly allowed because of severe guidelines.
Ground gambling is regulated by the law of 1977. Internet activities are not controlled. The amount of permits for physical venues is officially unlimited. But there is a casino which has full control over the segment. Also, according to the act of 2009, the local draw-conducting business Loterie Nationale is the sole permitted gambling organisation. It is coordinated by a non-benefit public establishment managed by the authorities.
Luxembourg considers these monopolies a method for encouraging gaming initiatives in regulated conditions. They take care of player security and publicise guidelines to maintain this system. Regardless of whether it is realistic to acquire a web gaming permit in the country, it is at peace with EU-based distributors that offer services to its residents.
France
The state has complete wagering guidelines. The organisation ANJ became functional in June 2020 when it stood up for the previous group, ARJEL. Casino activities are permitted solely in authorised land-based foundations, except for poker. This game can be presented by online distributors.
FDJ and PMU are the groups that monopolise local ground entertainment. While FDJ has rights to betting and lotteries, PMU is in charge of the horse competition market. Online animal racing and sports bids are available to authorised administrators. However, it only occurs on special conditions which are determined by authorities.
Taxes for online wagering on competitions are not too convenient for distributors: usually, they need to pay 54.9% of the GGR. Fees for stakes on horse racing differ quite a bit, with a consolidated payment adding up to 13.8% of the bets.
The market potential greatly compensates for the high tax rate. Almost 50% of 67 million residents are taking part in various activities, and a developing GGR is currently over €11.1 billion solely for the internet field. This is why this land is among the greatest markets, and the decision to enter it is quite lucrative.
Spain
This market is one of the greatest on the continent, with its €7.6 billion consolidated GGR. Spain's decentralised gaming sector is the consequence of the state’s experience in the previous 100 years. Gambling activities were no longer a crime in the official royal statement of 1977. The course of change towards a democratic setting was happening.
Since 1978 guidelines on gambling are not under the state's selective power. This means every one of the 17 territorial legislatures can introduce its administrative and authorising system. Running an internet gaming activity needs a permit provided by the central administrative body DGOJ.
Licences given by regional authorities are obligatory for:
- ground amusement activities;
- web operations for independent communities.
Nationally, gaming is controlled by Law 13/2011. Distributors are expected to acquire separate certificates for each type of gambling. They also need to get a permit for every gaming category inside those classifications. Licensing expenses are at least €45,000 for enlistment and inspecting. €10,000 for every particular type is added.
Tax collection for the area was corrected in 2018 so that the weight on distributors can be brought down and create a more put-together system.
The tax rate remains at 20% of the GGR. The exception is distributors situated in such regions as:
- Ceuta;
- Melilla.
Only in these regions, a 10% rate applies.
Portugal
This country has completely authorised gaming sectors. The field has not completely recuperated from the old harmful impacts. Additionally, it has been kept down by particularly high fee rates for regional distributors after the presentation of a permitting framework in 2016.
The crisis is demonstrated through dangerously high industry shares of operators that have no licence but offer punters better coefficients.
SRIJ is the authority that regulates gaming. It contains declarations that are updated for this day's laws. The most significant one of them controls the licensing framework. SCML, a state-owned gambling agency, has monopolised lottery activities and wagering on athletic events.
Operator groups can acquire licences to offer:
- bingo;
- fixed-coefficient sportsbooks;
- horse competitions of varying kinds;
- casino entertainment.
Expenses are starting from €12,000 for obtaining a permit (aside from bingo, which can be gained for €2,000). Additionally, €18,000 is paid for technical frameworks. Other charges are expected for the approval of every entertainment type.
The tax rate for internet gambling clubs is set at 25% of GGR. Sportsbooks add up to 8% of the overall turnover.
Italy
The local administrative structure for web-based activities is a variety of regulations, which have mostly been created throughout the last 20 years. They are broadly viewed as one of the most comprehensive on the planet.
ADM, the group that enforces local rules, highlights severe guidelines for all the processes. It offers a significant level of insurance for players.
Permits in Italy:
- can not be renewed locally;
- have a certain time of legitimacy;
- must be obtained through a tender (accessible only when authority considers it necessary).
The beginning cost is set at €2.5 million, so licences can cost a lot. Nonetheless, by obtaining one, distributors get access to an extremely lucrative market.
Lotteries are dependent upon private monopolies. Still, authorised companies can offer every type of gambling and wagering. Taxing rules differ somewhere in the range of 20% and 25% of the GGR. It depends on the game type.
The local internet gambling business has generally been behind the land-based one. However, the recent worldwide health crisis has caused a massive enhancement towards online activities, as internet wagering has increased by 45.1% during 2020. Due to this, Italy is a significantly appealing business sector for online distributors.
Malta
This country is currently famous for being a reputable licence issuer. It has become the first state to embrace a variety of web-based wagering guidelines, proposed in 2004. Because of this early advantage and an alluring taxation framework, the country solidified its standing as the go-to destination for distributors looking for a respectable permit inside the EU.
The current rules were modified and solidified in the act of 2018. It was updated with guidelines provided by the MGA regulator.
Inquiries for licensing are acknowledged on a continuous premise. The yearly cost of such a permit begins from €25,000. Distributors also add a month-to-month contribution determined by their incomes. The biggest sum can be €600,000 per year.
The tax collection system is especially profitable for businessmen. It is intended to limit the impacts of double fees on operators. The sum due is equivalent to 5% of the income which was received from players situated in Malta.
Other Countries
Let us have a look at the situation with the entertainment industry in other states:
| Monaco | The gambling activities in this region were established back in the 1800s by the influential royal. She had suggested starting a gaming club to renew the depository after the monarchy was on the brink of becoming bankrupt. Since then, the place became a posh seaside retreat which is appreciated by the wealthiest people in the world. Casinos are also a large revenue source for the royals. However, the locals, which represent just a 5th part of the territory's populace, are prohibited from such amusement. Web-based activities are not regulated. There is no complicated process for obtaining a licence, which makes it a perfect jurisdiction for non-locals |
| Andorra | Because of the many resorts where people can ski, the little realm in the mountains is beloved by many travellers. Gaming regulatory talks have been here for quite a long time now due to the place being such a major tourist attraction. The authorities allowed the opening of land-based clubs in 2018. However, none of the certificates were granted yet. Internet gaming is not authorised, and this leads to local people using services from foreign distributors |
| San Marino | This small country has a casino business, the moniker of which is after a local mountain. The authorities regulate the land-based sector and monopolise the majority of related operations. Web permits have not been given yet |
| Vatican City | The tiny religious land has officially put a restriction on gaming of any kind. Locals are unable to open physical casinos and start internet activities due to the regulation of 2013 |
The Main Things about Gambling in Western Europe
Every country in the region has its history and rules. It is majorly lucrative to open a gaming project in some jurisdictions, particularly Malta, which is considered one of the biggest authorities on the planet.
Casino Market offers help with obtaining a licence in the European country of your choice. We will ensure you quickly open a successful business anywhere.
Our experts suggest a multitude of products and services, such as:
- game development;
- ready-made casinos;
- security software;
- marketing and advertising support, etc.
Get in touch with our managers to immediately begin working together.
Have questions or want to order services?
Contact our consultants:
- e-mail: manager@casino-market.com
- Skype: support.casinosupermarket
- feedback form.
Check the information used to contact us carefully. It is necessary for your safety.
Fraudsters can use contacts that look like ours to scam customers. Therefore, we ask you to enter only the addresses that are indicated on our official website.
Be careful! Our team is not responsible for the activities of persons using similar contact details.
