American Online Gambling Market Set to Surpass Europe by 2028, Vixio Forecasts

A report released by Vixio, a leading provider of regulatory intelligence, forecasts that the American gambling market is set to eclipse the European market by 2028. This projection highlights a significant shift in the global gambling landscape, fueled by recent legislative changes and industry trends.

### Market Predictions

According to Vixio, “By 2028, regulated online gambling markets in the U.S., Canada, and Latin America are expected to generate USD 56.3 billion, aligning with or potentially surpassing Europe, influenced by currency fluctuations.” The legalization of online sports betting within multiple U.S. states and countries like Brazil is reshaping market dynamics, while stricter regulations in Europe are contributing to a slowdown in growth.

James Kilsby, Chief Analyst at Vixio, emphasizes this transformative trend: “Prior to 2018, the regulated online gambling market was predominantly euro-centric. However, the legalization of sports betting and iGaming across various U.S. states, alongside developments in Ontario and Brazil, has coincided with mounting regulations in Europe that have stymied growth in several instances.”

### Surge in the U.S. Gambling Market

The U.S. gambling sector is projected to more than double its revenues by 2026, increasing significantly from USD 15.6 billion in 2022 to an estimated USD 32.5 billion. This explosive growth is largely driven by states such as New York, where sports betting revenues exceeded USD 2 billion last year, resulting in over USD 1 billion in tax revenue thanks to a substantial 51% tax rate on sportsbooks.

### Strengthening the American Gambling Landscape: Brazil and Canada

The Brazilian market is also making waves, with projections indicating that its online sports betting revenue will surpass USD 1 billion by next year. Since legalization in 2023, Brazil has quickly ascended to be the second-largest gambling market in Latin America, following Mexico. The Mexican market is expected to reach USD 1.2 billion by 2026, illustrating robust regional growth.

Regulated online gambling revenue across 11 Latin American countries is anticipated to soar from USD 830 million in 2021 to an impressive USD 4.4 billion. After Mexico and Brazil, Colombia is positioned to capture a substantial share, with an estimated revenue of USD 770 million.

In Canada, the iGaming framework developed in Ontario, along with the recent passing of the Alberta iGaming Act, is poised to stimulate considerable growth. The country’s regulated online gambling revenue is expected to approach CAD 6 billion (USD 4.5 billion) by 2026.

### Deceleration in European Gambling Growth

Conversely, growth within Europe is predicted to be more subdued due to enhanced regulations imposed by gaming authorities. Vixio’s report indicates that the growth rate in the Americas is over twice that of Europe. The European regulated online gambling market is projected to reach EUR 37.3 billion in 2026, up from just under EUR 30 billion in 2022.

In the UK, stricter regulations concerning bonuses and promotions, along with stake limits on online slots, have hindered growth for online casinos. Likewise, countries like Germany, France, Norway, and Spain have enacted new advertising regulations and enforced stake limitations, further impacting market expansion.

Vixio will delve deeper into its data forecasting and regulatory intelligence solutions at the upcoming SBC Summit Americas in Florida, showcasing the trends and innovations shaping the future of the gambling industry.

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Adam Roarty is a seasoned writer with extensive experience in the gambling sector. Over the past five years, he has crafted engaging content for platforms including Oddschecker, CoinTelegraph, and Gambling Industry News, providing insights into the dynamic realm of sports betting and online gambling.