Sports betting is one of the growing industries globally; the enormous volume of matches makes the industry grow more by the day. Many sportsbooks offer great deals and bonuses and enticing competitive odds as a punter, and it’s vital to know the football market’s key features.
A simple betting guide on European regulations
There is no uniform law governing sports betting in the EU; the states are free to regulate their services. The states are expected to comply with the European union’s applicable treaty provisions. Most of these countries allow few online games. In contrast, others will enable all game sites, and others have monopolistic regimes that run the online gambling sites, meaning they control an operator with exclusive rights.
One of the countries with a monopolistic regime is Hungary, which runs the sports betting industry perfectly. Sports betting in Hungary is governed by the state Szerencsejáték Zrt sports betting monopoly. Hungary is a regulated gambling market with good bookies such as those shown on onlinesportfogadás.com. Under the new proposals, online gambling investors have a chance to launch betting services in Hungary under Hungary’s gaming regulation.
The current state of the sports gambling market in Europe
The sports wagering markets amounted $ 111billions back in 2019, while online casino gambling generated way lower with $27.6 billion in revenue, and the land-based casino made $83.7 billion the same year. The European Gaming and Betting Association has targeted online betting to grow by 33.6% in revenue by 2025. They expect that from 2022 to 2025, legalized sportsbooks will contribute 80% to the gambling basket revenue.
The industry is performing well because Europe is the home of the world’s most extensive online sportsbook, where they wager on the popular sport in their regions. In the UEFA 2020, more than 3 million people wagered where most of them were from the Uk and Italy. Countries like Germany, Denmark, and Austria are among the top countries where punters bet on horse racing.
A staggering 69.9% of those who gambled wagered on horse racing, and 31% of the people confirmed they bet at least once a week. Most of them are between the age of 45-54 years which is 48.5% of the population, while 35-44 years, followed by 47.6%
Portugal’s wagering revenue increased by 224.5% within a year, whereas football took the lead with 77.48% of sports betting total revenue. The revenue came from the English Premier League, Portuguese Primera Division, and Spanish Primera Division.
UK, France, and Irish are rugby union fanatics; according to a study carried out in the UK, around 80% of those who responded said they prefer sports betting to any other form of online gambling. American fans go crazy over basketball and tennis, where you find 18% of sports revenue comes from the two sports. During the 2019 covid pandemic, sports betting increased by 15.5%.
The Tax Rates on the Sports Betting
Many European countries have embraced the online wagering industry because of the levied tax on the bookmakers; unlike countries like Japan, where the bettor winning are taxed, most European countries’ gambling income is not taxed; they get taxes from the bookmaker.
It has played a gigantic role in industry popularization because gamblers know they will walk away with their 100% winnings, which positively impacts the company and the government who have their cut. Most of the money collected from the gambling tax is taken to cater to public facilities like health care and maintenance of the public facilities.
Like the regulations, different tax rates apply for different states, which can promote or cut off online casinos in a country. For example, Greece takes the lead with a 35% tax rate. Greece requires the operators to have a license, but there are still many restrictions because the government grants very few licenses. Which has negatively affected the global fasted growing industry in Greece, where it is still stunted. Many operators have shown interest in investing in Greece, but the government remains adamant, and the interested gambling companies see it as an untapped market. If the government opened such a market, it would find it a lucrative business.
Sports betting has gone considerably well in Hungary, and since it has been under monopoly, all licensed operators in Hungary follow responsible gambling regulations. The online betting sites pay 15% of their revenue, attracting outside investors. Hungarians don’t know what’s in store for gambling taxation with the new law coming. There are no tax charges on the bet winning, but 16%-24% of your winnings will be withheld if you win the lottery.
The United Kingdom
If you have an interest, the best market to invest in would be the United Kingdom, with 21% tax rates on a consumption basis, meaning you don’t have to be UK based. You will need a license too to operate, and the market is open for whoever meets the regulations and promotes responsible gambling can have their way in Uk. Because of this, Uk has a significant surge in operators onshore and offshore, with sites offering all sorts of games and sports.
The growth of the industry and its benefits have prompted the Netherlands to legalize online gambling in 2021. It has been thriving in actual casinos though it has some measures like gamblers must declare their gambling income, and they would be taxed on it. The tax rates are a bit high where the government pays a whopping 29%, and on top of it, the land-based casino operators must contribute 1.5% to the gaming authority, and 0.25% goes to the country basket for addiction fighting.
Italy takes second place after the UK in the online wagering market in Europe; it charges 22% tax rates on the online casinos, resulting in their revenue rising every year despite the government banning advertisements during the football match. Sweden follows closely, charging 18% tax, and you must have a license to operate in her territories.
Europe has a significant sports betting market, and the European Commission supports the EU countries in modernizing their online gambling frameworks, primarily legal administrative and gambling regulatory authorities. It ensures high customer protection levels, including vulnerable ones like minors.
Sports betting is a popular way of entertainment, and regulators face many challenges that they need to overcome; that’s why you find laws being amended to increase customer security. The European community doesn’t have uniform laws for its member states, the fastest growing betting industry.