With 2015 behind our backs and the financial results for it released across the industry’s major players, it is time to look back and draw some conclusions. Looking over the past decade (2005-2015), we can safely conclude that in Europe, the online gross gaming yield (GGY for short) has increased over three times, reaching a staggering $15 billion.
With the rise of online gambling, the likes of GBGC (Global Betting and Gaming Consultants) confirm the logical expectations – online alone, GGY took a 198% upturn up to 2010. Since then the rate has slowed down a bit, bringing it to $15.87 billion, or a 43% increase up to date. In all, over the past 10 years the increase stands at 328% total. If the trend remains as it is, by the end of 2020 we will see over $20 billion GGY for the bookies on the continent.
In terms of diversity, sports are responsible for 45,6% of the shares back in 2005 and for 48,5% today, which is a barely significant change. Casino operators went up a tad, from 23,1% to 29,2% over the same period.
The increase is explained with the wider reach of the internet, giving operators even bigger markets to reach out to. Another reason is the ease up on legislations, which have shown slow but still steady progress. Improved technologies are also “to blame” – with more and better games on offer the interest to them is of course spiking. A surprise comes from the world of poker, which is one of the few gambling activities that not only didn’t perform well but in fact went down in numbers – from a share of 23.2% back in 2005, dropping to 22% of the total European GGY in 2010. This could be explained by the character of the game and the fact that it requires higher skills and investment. The new-day average player doesn’t have the time to spare in training and playing and is more into instant games and quick wins (or losses as the case may be). Bingo has held a steady 8-9% – pretty solid, proving it has one of the most loyal fan base across the board and over time.
An interesting thought is to envisage the outcome of an eventual Brexit on the gambling industry in Europe and so – on the GGYs to come in the following years. Spain has expressed its will to take back control over Gibraltar, which as we all know is the haven of most online bookies on the continent and not only. The Foreign Minister of the country said in an interview that Spain [will] “be talking about Gibraltar the very next day [after the referendum]”. The UK will be voting in June this year, so we’re all holding our breaths.
As it stands, the border between Spain and Gibraltar is not considered within the EU, as it is following the British choice of opting out of the Schengen Area. Anyone who has recently traveled there will be familiar with the painful, sometimes lasting for hours delays on the borders.
If we are to trust bets made, the UK will after all remain in the European Union. William Hill’s odds are 1/3 in favour of staying and 9/4 – for leaving. The bets that Spain will be getting Gibraltar back in the case of a Brexit, though, though are rather clear.