PwC: iGaming Growth in Europe Slows Due to Increasing Taxes

PwC has prepared a report for the Betting and Gaming Council (BGC), highlighting a worrying trend: across European countries, stricter regulations and higher gambling taxes are slowing market growth, pushing players toward unlicensed platforms, and reducing the efficiency of tax collection.

🇬🇧 The UK in the European Context

According to PwC, the UK’s tax and regulatory model is now close to the European average. After raising the Remote Gaming Duty from 15% to 21% in 2019, the UK entered the group of “stable” markets.

Current UK gambling tax rates:

🔵 Horse racing — 25%

🔵 Casino — 21%

🔵 Sports betting — 15%

Market Growth and Tax Revenues

PwC points to a direct link between high taxation levels and slower industry growth:

🔴 In Western European countries where taxes increased between 2019 and 2024, average annual GGR growth was only 6%

🔴 Where tax burdens were kept the same or reduced, growth reached 17% per year

🔴 In Germany, the turnover tax on online slots and poker (5.3%) led to a 50% drop in tax revenues and a significant reduction in available games

Overall, low-tax markets grew by 13% annually, while high-tax jurisdictions grew only by 9%. In the Netherlands, where the gambling tax increased from 30.5% to 34.2%, authorities expect a 9% decrease in tax revenue despite rising betting volumes.

Operator Reaction

🔵 13 out of 19 companies reduced bonus budgets

🔵 15 out of 21 cut advertising spend

🔵 In France and Spain, bonus volumes dropped by nearly 47% after new advertising restrictions were introduced

Players Are Moving Into the “Shadow” Market

🔴 40%-53% of players said they are ready to switch to unlicensed sites

🔴 In France and Germany, nearly half of online players already bet on offshore platforms

🔴 High-stakes users — the top 5% of players — turned out to be the most sensitive to reduced bonuses and payouts