The UK has seen its position as the largest gambling market in Europe overtaken by that of Italy. The country saw a surge in online gambling, pushing its annual revenue up to €21.5bn (£18.89bn) in 2024, above France, Germany and the UK.
The industry’s growth has drawn criticism from some groups, including the Catholic Church, but proponents point to the €11.5bn of annual gambling taxes as being beneficial to the country as a whole.
UK gambling industry
The UK has long been considered the most established gambling industry in Europe, with many countries and states abroad mirroring the UK Gaming Commission’s (UKGC) regulatory lead. The last full year’s results suggest that the industry is continuing to grow. Revenue reached £15.6bn between April 2023 and March 2024, representing an increase of 3.5% compared to the year before.
However, certain areas of the UK market have struggled. Horse racing, in particular, has railed against additional regulatory requirements, including affordability checks, introduced just over a year ago.
Proposed gambling tax increases, which are widely expected to be introduced by Chancellor Rachel Reeves in the November budget, pose a continued threat – one that led to a complete industry strike with all meetings cancelled on 10 September.
Brits have a long history of betting, and in one survey undertaken by the Betting and Gaming Council, nearly 75% of bettors said they believe the activity to be an important part of British culture.
The Italian gambling industry
Italians have a similar history with betting. During the days of the Roman Empire, legionnaires bet on games of Ludus Duodecim Scriptorum and, in the 17th Century, Ridotto in Venice became the first officially sanctioned gambling house.
In 2006, the country started to open its online gambling industry further, following action by the European Commission.
In 2010, it became much easier for companies to gain licences and operate in the Italian industry, and this has led to a substantial increase in betting activity within Italy.
Additionally, in 2004 the total gambling spend was around €25bn (£22bn). Today, it is more than €150bn (£132bn). And that increase has seen Italy become the largest gambling industry in Europe.
Analysts also estimate that the country’s illegal gambling market is worth around 10% of the legitimate market.
Gambling opponents point out the disparity in tax increase compared to the increase in expenditure. While gambling spending rose from €25bn to €150bn in the space of two decades, the tax collected only rose from €7bn (£6.2bn) to €11.5bn (£10.2bn).
Meanwhile, the German industry continues to evolve: online sports betting, online slots and online poker were only regulated in 2021. It has strict regulations, which require ID verification and constant monitoring of player activity to prevent social harm.
With potentially significant tax changes in the UK, a German market set for continued online development, the continued possibility of France legalising online casinos, and the threat of changes to Italian regulations to deal with problem gambling, the European gambling industry continues to face continual economic changes in the coming years. Maybe Germany will be the next big hitter in the future?
