Gaming in Europe to grow ‘heavily,’ Google’s Mariusz Gasiewski says

Jenny Ortiz August 15, 2024
Gaming in Europe to grow ‘heavily,’ Google’s Mariusz Gasiewski says

The gaming industry in Europe has experienced growth, with experts forecasting continued expansion in the coming years. Gaming and gambling have become key components of the region’s digital economy, driven by regulatory changes, technological advancements, and evolving customer behaviour.   

Speaking with SiGMA News during SiGMA Asia, Mariusz Gasiewski, Central and Eastern Europe (CEE) Mobile Gaming and Apps Lead at Google, discussed the state of the market, highlighting both opportunities and challenges ahead.  

Market size and growth forecasts  

According to Gasiewski, the gaming and gambling sectors are set for remarkable growth in the future. “The whole gambling industry is expected to grow heavily,” he shared. Current estimates suggest the market will reach around $107 billion (€97.2 billion) this year, with projections hitting nearly $137 billion (€124.4 billion) by 2028.  

This rapid expansion is largely due to increased accessibility, technological innovations, and a more defined regulatory landscape across Europe. Gasiewski explained that Europe has had a head start over other regions, particularly Asia, due to early regulation. “A lot of markets in Europe got regulated, so then they were opened even for some acquisition and for Google, for example,” he noted. These regulations provided a framework for growth, allowing companies to acquire and monetise users, and measure results effectively.  

According to the latest SiGMA Market Report focussed in Eastern Europe, the analysis of market capitalisations in the online gambling sector reveals Flutter leading with £27.6 billion (€32.1 billion), followed by Evolution at £18.0 billion (€20.9 billion) and Entain at £4.3 billion (€5 billion). The average market capitalisation of the companies analysed in the report stands at £3.7 billion (€4.3 billion). The data provides insights into the industry’s financial landscape, reflecting market dynamics and valuation trends.  

Google’s role in Europe’s gaming sector  

As the lead for Google’s mobile gaming and app efforts in Central and Eastern Europe, Gasiewski also shared insights into Google’s activities and plans in the region. “We are helping our clients understand the industry and grow their online presence with Google solutions in the gaming, sports betting, and gambling industry,” he said. Google’s work involves providing advertising solutions and technical support to top gaming and gambling companies, allowing them to thrive in a competitive market.  

Gasiewski emphasised the role of artificial intelligence (AI) in shaping the future of gaming and advertising. “AI is a topic that is really playing an important role now and is going to be even bigger in the future,” he said. AI-driven solutions are becoming more prevalent, from improving user experiences to enhancing advertising capabilities.  

He also highlighted Google’s commitment to supporting gambling-related businesses as more markets establish specific regulations for the sector. “More and more markets are open for Google — for the presence of apps, from the gambling side, and for advertising,” Gasiewski added.  

One of the key areas of focus during the discussion was the trends driving the online marketing strategies of the casino and sports betting industries. Gasiewski pointed out that there are valuable lessons the gambling industry can learn from the gaming sector, particularly in user acquisition and retention. “Gaming companies grow faster and are a little bit more agile,” he said, referencing the relatively less regulated gaming sector’s ability to innovate quickly.  

A key trend Gasiewski identified is a shift in focus from short-term gains to long-term user retention and value. “In growth and user acquisition activities in gambling, it’s still about acquiring as many first deposits as possible,” he explained. However, the gaming industry has already moved toward understanding user lifetime value (LTV), prioritising the retention of high-quality users over short-term goals.  

This trend is becoming increasingly important as competition intensifies in gambling and sports betting. Gasiewski noted that companies must now think more strategically about how to create lasting relationships with their customers. “Everything starts from the customers, from the users. It’s really important to understand the users and try to respond to their needs,” he emphasised.  

The growing importance of mobile apps  

Mobile apps are becoming an essential asset for companies in the gambling and sports betting industries. Gasiewski, who primarily works with apps, shared that the usage of apps in these sectors has “skyrocketed” in recent years. This growth is particularly pronounced in sports betting, where more and more users are engaging through mobile platforms.  

As mobile apps become central to the gambling experience, companies need to focus on creating seamless, secure user experiences. “It’s about how to onboard the user, how to make sure that from the first minute they land on the app, they feel secure,” Gasiewski advised. He stressed that providing value and building trust is essential in ensuring long-term customer loyalty.  

Challenges in the industry and Google’s approach  

While the gaming and gambling industries in Central and Eastern Europe are thriving, they are not without challenges. Gasiewski acknowledged that regulatory changes, competition, and the need for consumer trust present ongoing obstacles. However, he emphasised Google’s user-first approach as a key to overcoming these challenges. “The whole idea for Google was always thinking users first,” he stated.  

One of the most pressing issues for Google and its partners is privacy. Gasiewski revealed that Google has been working intensively to address this challenge. “In the last years, Google is doing so much around privacy,” he explained. Ensuring that users feel secure and that their data is protected is critical to building trust in the industry.  

Gasiewski believes that a long-term, user-centred approach will be beneficial not just for individual businesses but for the entire industry. “The more the industry thinks about the user – about trust, privacy, and security, the better it will be for the industry in the long term,” he said.  

The path forward for Europe’s gaming sector  

The gaming and gambling industries in Europe are on a growth trajectory, with significant opportunities ahead. As companies continue to navigate regulatory changes and increased competition, the focus is shifting from short-term profits to long-term user engagement and trust.    

The integration of AI, the growing importance of mobile apps, and a commitment to user privacy and security are shaping the future of the industry. As Gasiewski noted, “It’s about thinking long-term – providing value, and making sure users feel secure and supported.” 

Upcoming SiGMA event: Click here to find out all about SiGMA East Europe powered by Soft2Bet happening in Budapest, September 2024.

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Lea Hogg
2024-11-01 03:46:34