Francesca Raniolo, Senior Business Development Executive at Enteractive.

In 2023, the iGaming and sports betting industries in Europe, particularly in Germany, Austria, and the Netherlands, underwent a transformative phase, experiencing both substantial growth and regulatory shifts that posed challenges yet also unveiled new opportunities.

The landscape has been characterised by both the hurdles and opportunities emerging from these new regulations, with operators navigating through to maintain business activities and ensuring compliance.

Notwithstanding the overall regulatory obstacles within the mentioned markets, Enteractive’s ability to support operators growth, with particular focus on retention of players in the post churn cycle, is significant. We see an overall increase in brand loyalty through personalised re-engagement efforts, exclusive one-on-one contact and responsive support, increasing reactivation and fostering long-term player loyalty even within these highly regulated markets. 

Key metrics in the European market have shown us that personal response and attentiveness to customers results in highly responsive and reactive players. 

Germany:
In Germany, iGaming and sports betting operators are grappling with various issues, and need to stay informed and compliant with the evolving gambling laws and regulations. The regulatory landscape is complex and demands a thorough understanding to navigate successfully.

The implementation of a €1000 monthly deposit limit has been a significant constraint, causing difficulties for operators to receive approval for player deposits exceeding this cap. This limitation has implications on player engagement and the overall revenue generation for the operators.

Moreover, the German Sports Betting Association (DSWV) has called for a reassessment of the current regulatory framework. The association reported a notable increase in active offshore gambling and sports betting offers, indicating a surge in black-market activities. The increase in offshore gambling implies that the stringent regulations might be driving players towards unregulated platforms, posing risks both to consumer protection and market integrity.  

For regulated operators, the draw of black market services erodes the levels of retention and loyalty to keep players active with their favourite brands. As such, the industry is faced with the task of maintaining player engagement and improving Lifetime Value (LTV). 

Enteractive’s approach mitigates some aspects of these challenges, providing a clear and compliant approach to keeping players active and building on bottom line revenues.

Our conversion campaigns successfully activate 6% of registered non-funded accounts in Germany, and our reactivation campaigns bring 11% of lapsed audience segments back to the entertainment.

Austria:
Austria, like Germany, has faced hurdles with the harmonisation of state-specific regulations and the creation of a comprehensive oversight across the entire market. 

In both the iGaming and sports betting markets, operators in Austria are confronted with multifaceted challenges stemming primarily from a complex regulatory landscape. Each state within Austria maintains its own betting act and a localised competent regulatory authority. This leads to a scenario where operators must navigate and comply with diverse sets of rules and regulations across the states, adding layers of complexity and operational demands.

Furthermore, the Austrian Gambling Act imposes strict limitations on online casino gambling, restricting its provision solely to operators possessing the requisite licences within the country. This translates to a tightly controlled market environment, demanding rigorous compliance and adaptation from operators seeking to offer their services legally. 

Despite these difficulties, Enteractive’s approach complements operator efforts to offer a compliant approach to player activation and retention in Austria. Our player conversion campaigns offer a 12% success rate from the audience segments our operator partners ask us to target, while our reactivation outreach revives the playing activities of 10% of the players we speak with. 

Netherlands:
Similarly, the Netherlands embraced change, adjusting to a regulated iGaming environment. 

​​iGaming and sports betting operators are grappling with various complications, adhering to a stringent and rigorous set of regulations introduced by the Dutch regulator, Kansspelautoriteit (KSA). This regulatory framework demands operators to continuously adapt and comply, impacting the way they conduct their business in the Netherlands, and operators could face further regulatory hurdles as there are proposals to introduce loss limits, meaning more hurdles for operators to deal with to remain compliant and viable in the Dutch market.

Considering the Dutch ban on all untargeted gambling advertisements, including shirt sponsorship, the Netherlands market is facing its own unique regulatory barriers like the other European markets. This advertising stipulation could limit the marketing avenues available to operators, affecting their visibility and customer acquisition strategies.

It’s another great example of how Enteractive can help operators maximise revenues from audience segments lost to non-funded registrations and churned player accounts.  Our RND conversions show a success rate of 6%, while an average of 12% of dormant or lapsed accounts are reactivated. 

Outlook for 2024: Navigating Roadblocks and Opportunities

The outlook for emerging markets in the European iGaming and sports betting industry in 2024 appears promising. The Gross Gaming Revenue (GGR) in Europe’s iGaming industry is projected to reach €41.7 billion in 2023 and further increase to €44 billion in 2024. Every operator looks for a slice of this projected growth, and Enteractive’s personalised approach is crucial to leverage inactive player databases. 

Understanding our partner’s player preferences and gaming behaviour is key to our success. Our tailored and personalised communication with churned and RND players increases the likelihood of re-engagement to their sites. This growth in revenue reflects the resilience of both gaming and sports betting sectors to economic fluctuations and indicates a low impact on spending on gaming activities from financial slowdowns.

Sport-betting revenue is expected to grow at high-single digits in markets outside the US over 2024-2026, demonstrating the industry’s strength and potential for further expansion.

Moreover, the overall global online gambling market, which includes European markets, is anticipated to reach approximately US$90.36 billion in 2024, growing at a CAGR of 11.50% during the period spanning 2020-2024.