A report published by regulatory intelligence provider Vixio predicts the American gambling market will surpass the European market by 2028.
The report states that
“By 2028, regulated online gambling markets in the U.S., Canada and Latin American countries are expected to generate US$56.3bn, drawing level with Europe or potentially surpassing it depending on currency fluctuations.”
Recent legalization in Brazil, in addition to US states legalizing online sports betting, combined with stricter regulations in Europe, is seeing a shift in the global gambling industry.
“Prior to 2018, the regulated online gambling market was highly euro-centric but legalization of sports betting and iGaming in various U.S. states as well as the major markets of Ontario and Brazil has coincided with stricter regulations in European countries that has restricted growth in a number of cases,” said James Kilsby, Chief Analyst, Vixio.
Fast growth in the US
The US gambling market is projected to more than double by next year, compared to 2022. In 2022, the online betting market was worth $15.6 billion, but that is expected to increase to $32.5 billion by 2026.
New York sports betting leads the way with over $2 billion generated in revenue by sportsbooks in the Big Apple last year. The state received over $1 billion in tax revenue as a result of its 51% tax rate.
Brazil and Canada add to American gambling industry strength
Brazil’s online sports betting revenue is projected to surpass $1 billion next year. The country has quickly established itself as the second-largest gambling market in Latin America, after Mexico, since legalizing this year. The Mexican gambling market is expected to be worth $1.2 billion by 2026.
Regulated online gambling revenue across 11 Latin American countries is projected to grow from US$830 million in 2021 to US$4.4 billion. After Mexico and Brazil, Colombia has the next biggest share of that at US$770 million.
Meanwhile, Ontario’s iGaming framework in Canada and the Alberta iGaming Act passed this year has accelerated growth in Canadian gambling. The country’s regulated online gambling revenue is projected to reach just under C$6 billion (US$4.5 billion) by 2026.
European gambling growth slowing
Growth in Europe is expected to be more modest due to increased regulations by gaming authorities. Vixio wrote in their report that the growth rate in the Americas “is more than double the equivalent in Europe, with the European regulated online gambling market projected to be worth €37.3bn in 2026, up from just under €30bn in 2022.”
In the UK, tighter rules around bonuses and promotions from gambling operators and stake limits on online slots have stifled the growth of UK online casinos.
Similarly, Germany, France, Norway, and Spain have all introduced new rules around gambling advertising, and many countries also enforce stake limits.
Vixio will be showcasing its data forecasting and regulatory intelligence solutions in more detail at the SBC Summit Americas this week in Florida.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling.
