The iGaming industry has been a surprising winner amid the pandemic. Projections show that by 2026, the industry could be worth as much as $160 billion! Despite disruptions in many sectors, online casinos have strengthened their position due to increasing popularity and advances in mobile technology.
When considering launching an iGaming business, it’s essential to think about the best place to run it. Although staying in your home country may seem like a natural choice, there are several advantages of looking into offshore options too! These can include lower taxes enabling faster growth, cheaper registration and license fees, or transparent requirements.
When making your decision, it’s crucial to do research and be sure you’re picking a country with trustworthy regulations, reliable internet connections, a vast talent pool, and other factors that will ensure success for your business. Read on to discover some of the best EU countries to start a business in iGaming!
Sweden
Sweden has been a strong force in the iGaming industry for decades, and it’s no wonder. The Swedish Gambling Authority (SGA) 2022 survey shows 38% of Swedes declaring having played over the last week and another 14% over the previous month. Sweden is one of Europe’s biggest iGaming markets today, a testament to Scandinavian innovation and passion for entertainment-based gaming experiences like casino games.
The country is also a leading destination for iGaming companies thanks to its highly trusted regulatory environment, EU membership, and first-class telecommunications infrastructure. The SGA ensures safe gaming opportunities in an ethical setting, making it attractive to businesses and players.
Also, the Swedish government doesn’t impose a tax on players’ winnings. Companies must pay a tax on all revenue, but players get to keep their winnings all to themselves. Finally, with access to a skilled talent pool and nearby other renowned gaming firms, there are plenty of compelling reasons why you should consider investing your business in this Scandinavian country!
The United Kingdom
Britain is an attractive destination for online gaming companies, enjoying a market of almost 34 million active accounts. According to research from the United Kingdom Gambling Commission (UKGC), 44% of Brits gamble each month. Home to some of the most renowned brands like William Hill and Paddy Power, the country offers players the advantage of tax-free winnings – making it an attractive market to operate from.
Despite the country’s strict gambling regulations, launching an iGaming business in Britain is still viable. Operators can rest assured that the regulator ensures high-quality gaming experiences and, thus, consumer trust. For example, the UKGC has taken a bold step towards making gambling even more secure for its citizens by bringing in an innovative credit card ban.
Since 2020, British players have been prohibited from depositing money with credit cards or e-wallets. This ban may be an inconvenience for some players at first glance – yet it displays the government’s dedication to helping citizens play safely and responsibly! All these advantages come with access to a skilled talent pool and a superior digital infrastructure making the UK market even more appealing!
Germany
Germany became an exciting market for the iGaming industry. Home to more than 82 million people, Germany is the most populated country in Europe and a hub for many industries. Up until a couple of years ago, it was one of the continent’s biggest grey markets for online gambling. But in July 2021, things changed.
The Interstate Treaty on Gambling officially went into effect across all 16 Federal Republic states, ushering in a new era of legal gaming opportunities. Alongside sports betting, operators can now provide some previously prohibited verticals, such as casino games and poker.
Online slots and poker can now be offered at the federal level, while other casino games can be provided at the state level. Following this expansion, strict regulations have been implemented, like €1,000 deposit limit and a maximum slot stake of €1 per spin. A 5-second minimum spin duration has also been set to restrict ‘fast-play’ and protect players from its addiction risks.
However, affiliates working within the German market will find unique challenges as no deals are allowed based on revenue or activity levels alone – another measure taken towards responsible gambling practices.
Malta
Boasting crystal-clear waters and a Mediterranean climate, Malta is an island nation that attracts millions of visitors every year. As one of the first European Union countries to regulate online gaming in 2004 with its Malta Gaming Authority (MGA), it’s no surprise why this small country has become “the world’s gaming capital”.
With an excellent digital infrastructure ensuring smooth gameplay, coupled with initiatives from the MGA to encourage competition amongst businesses within the iGaming sector – players worldwide can benefit directly from the top-quality services provided by iGaming companies operating from sunny Malta!
With over 10,000 international workers, or 6% of the total workforce (predicted to double by 2024), the iGaming industry in Malta is thriving. Starting an iGaming business in Malta will give you access to a global highly-experienced talent pool. Still, one of the most significant benefits of Malta is its low 5% tax rate for iGaming companies – an attractive option that more than 500 businesses have already taken advantage of!
Conclusion
When launching an iGaming start-up, choosing the right location is vital. From Malta’s low taxes to the UK and its network of business contacts and passionate players – no single destination reigns supreme.
With over 20 years of experience in international expansion and HR solutions, our understanding of the local market through skills mapping, salary bands, cost of employment, local legislative requirements, and competitor employee analysis guarantees the smoothest expansion!
Do not wait, and contact our teams today! Our experts can guide you on your expansion journey by listening to your challenges, assessing your needs and advising on tailored solutions with a holistic lifecycle approach.
