Comparing the U.S. and European Gambling Markets – So Similar, So Different
A high-level look at the U.S. and Europe’s gambling markets is revealing. Both regions spend almost the same amount on gambling as a percentage of GDP – 0.40% in the U.S. and 0.39% in the EU – but that’s where the similarities end. Some quick thoughts.
Despite sports betting being available in 39 U.S. states, Europeans spend two and half times more as a percentage of GDP on sports and event betting. Europe is also a much more established sports and event betting market and has significant land-based betting revenue. The U.S., with a widespread land-based gambling market, is still in the early stages of sports betting growth. Thus far, sports betting in the U.S. has established itself as a new gambling category with limited, if any, impact on casino revenues.
Land-based gambling in Europe is responsible for only 59% of total casino gambling spend, compared to 93% in the U.S. This is largely due to regulatory constraints as well as limited casino investment and experiences. Interestingly, online gambling is often seen as a “safer” form of gambling from a KYC and harm reduction perspective because of its technological capabilities. The success of a new integrated resort in Greece could be a bellwether for future gaming investment in Europe, should the resort prove to be successful in establishing a new experience benchmark.
Online casinos are significantly less represented in the U.S. because only a limited number of states offer this form of gambling. Based on the quick adoption online sports betting has experienced in the US, the sky could be the limit for US online gaming growth (if unleashed).
