EGBA Annual Activity Report 2024: What does the data tell us?
The European Gaming and Betting Association (EGBA) has released its second Annual Activity Report, an overview of the Association’s work, achievements, and impact over the past 12 months. Included in the report is valuable data collected from members of the EGBA, including prominent operators such as bet365, Betsson Group, Entain, Flutter, LeoVegas, Superbet, and others. Not only does this data offer a comprehensive snapshot of industry trends in 2024, it also makes for interesting reading when it comes to player behaviour and preferences.
Key metrics and trends
Gross gaming revenue
EGBA members reported a combined gross gaming revenue (GGR) of €13.5 billion in 2024, marking a 15% increase from the previous year. This growth reflects expanding market demand and the industry’s ability to attract new customers while retaining existing ones.
Stakes and player winnings
The number of online stakes surged by 31% to reach €177.7 billion in 2024, while their total value grew by 11% to €215.6 billion. Concurrently, player winnings increased to €202.1 billion (+11%), a reflection of the industry’s high return-to-player (RTP) rate of 93.7%. These figures highlight a competitive market where operators balance profitability with attractive payouts for players.
Average stake decline
Despite an overall growth in stakes, the average stake per bet fell by 14% to €1.20. This decline suggests a shift toward smaller individual bets, potentially driven by increased accessibility via mobile platforms or heightened consumer caution amid economic uncertainties.
However, lower average stakes often lead to an increase in player engagement (more bets placed), which can partially compensate for reduced revenue per bet. The 11% rise in stake value suggests that higher betting volumes are offsetting the smaller bets.
Product segmentation
Casino games dominated the online gambling landscape, accounting for 51% of GGR (€7 billion, +22%). Sports betting followed at 41% (€5.5 billion, +15%), with other segments like bingo (+19%) and esports (+16%) showing robust growth. Poker revenue declined by 5%, reflecting a potential waning interest in this category compared to more dynamic offerings such as virtual betting.
Sports betting dynamics
A notable trend in sports betting is the shift from in-play betting (37% of revenue) to pre-match betting (63%). This reversal from earlier years indicates changing player preferences or strategic adjustments by operators to optimise profitability.
Player accounts
The total number of active online player accounts rose to 32.5 million (+4%), reflecting steady growth in user engagement across EGBA member platforms.
Market analysis
Growth drivers
The rise in GGR and stake value could be attributed to several factors, including:
- Technological Innovation: Enhanced user experiences through mobile apps and advanced gaming platforms have broadened accessibility.
- Regulatory Developments: The adoption of multi-licensing frameworks across Europe has encouraged competition while ensuring consumer protection.
- Marketing Strategies: Operators have maximised targeted advertising campaigns and promotions to attract new players.
Challenges
While growth is evident, challenges persist:
- Average Stake Reduction: The drop in average stake size may signal cautious spending among consumers or a preference for low-risk gaming options.
- High-Stake Players: Operators reliant on high-stake players may face revenue declines if stake limits or economic pressures reduce these players’ contributions.
- Poker Decline: The shrinking poker segment highlights the need for operators to innovate or diversify offerings within this category.
- Black-market Competition: EGBA members have expressed concerns about unregulated operators undermining player protection efforts. In addition, regulatory changes may drive some high-stake gamblers toward unregulated markets, further impacting licensed operators’ revenues.
Emerging opportunities
- Segments like esports and virtual betting are gaining traction, presenting opportunities for operators to tap into fresh demographics.
- Ongoing investments in safer gambling tools, used by 65% of European customers, demonstrate the industry’s commitment to responsible gaming practices.
- Lower stake average value can make playing more appealing to casual or risk-averse consumers. This could expand the customer base and contribute to long-term revenue stability.
Regulatory implications
EGBA’s advocacy for multi-licensing frameworks aligns with its mission to balance market competitiveness with robust consumer safeguards. Finland’s upcoming reforms will make multi-licensing universal across EU member states, a milestone that validates EGBA’s position against monopolistic models.
Furthermore, EGBA members collectively hold 321 licenses across 21 European countries, reflecting stringent compliance standards. These licenses not only ensure fair play but also contribute significant tax revenues to national governments.
Promising growth trajectory
While challenges such as black-market competition remain, the sector’s overall growth trajectory is promising. The operators’ focus will be on innovating their product offerings while adhering to evolving regulatory standards in order to sustain this momentum.
As consumer preferences shift towards smaller stakes and diverse gaming options like esports, the industry’s ability to anticipate and respond to these trends will be key in maintaining its competitive edge. With continued collaboration between regulators and operators, Europe’s online gambling sector is on track for sustainable growth that prioritises both profitability and player protection.
