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How Do European Gambling Laws Differ From the United States?

The gambling industry is becoming increasingly popular, encountering quick development all around the world, with both the European and US gaming markets seeing this rapid growth. The impact of online business sectors and the expanded web-based activities play a key role in this drastic worldwide adoption. It is estimated that by 2025, the overall gambling business sector will reach $97.69 billion.

Although the game is the same, the laws, requirements, and standards surrounding it are very different in every country. Simply put, Europe and the US may bear similarities in certain regulations for this matter and differ drastically in others.

If you are interested in finding out more about how European and US laws vary, keep reading below.

How is Gambling Perceived: the US vs. Europe

The image this activity holds in the eyes of the people plays a significant role in the regulations’ creation and, with that, its legalization. Namely, European countries have a more laid-back view of betting in general. It’s seen as a simple way to add more fun to a match or a game. 

Contrarily, the US has a stricter view, placing a negative connotation on the term “gambling”. However, this is slowly changing as emerging new laws are more lenient and governments become more aware of the significance of this activity on their economy.

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General Gambling Regulation Differences Between Europe and the US

It’s no secret that Europe’s legal frame on gambling is more complicated than the US. This is because all nations create their own laws that do not have to be in accordance with the ones of their neighboring countries (but have to respect the fundamental freedoms laid out in the Treaty of the Functioning of the European Union). Mostly, there are specific organizations in the local governments that regulate this matter. Additionally, European nations typically have a more open stance toward gaming because they believe it will attract more foreign investment.

The circumstances in the US are a little different. State laws must nevertheless adhere to US federal law even though states are free to introduce their own regulations. Gambling is legal on a Federal level but online gambling is not. That is until the Supreme Court expanded the authority granted to state governments, enabling them to approve and regulate online gambling. As a result, Nevada and New Jersey rose to the top of the list of states that broadly allow gambling. Additionally, this is rapidly expanding to other states as each day goes by.

The Realm of Online Gaming: Europe vs. the US

The main difference between the two continents in terms of online gaming is that Europe is more influenced by bigger gaming companies, unlike the US. Below, we’ll dive deeper into what truly sets both apart.

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Europe

In 2019, online gaming took up $24.5 billion of the whole European gambling market revenue, with the UK taking up the biggest portion – 30.1%. That is because the public authority has invested energy and finance to create a positive business climate. Countries like Malta and Ireland are also making their presence known in this sector. 

Interestingly, France has set up a firm gaming presence by providing players with online enjoyment in the form of sports betting, casino games, and horse betting. In Germany, online gambling is only allowed if the provider holds a German license. However, there is still no provider with such a license, so online gaming is, hence, deemed illegal. On the other hand, in July 2020, Interestingly, France has set up a firm gaming presence by providing players with online enjoyment in the form of sports betting, casino games, and horse betting. In Germany, online gambling is only allowed if the provider holds a German license. However, there is still no provider with such a license, so online gaming is, hence, deemed illegal. On the other hand, in July 2020, Germany legitimized online betting in the entirety of its country and is working on new regulations.

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The US

The US gambling industry’s revenue for 2021 reached around $52.99 billion. But considering that the US is set on implementing more changes in its iGaming industry, it’s no surprise that the expectations are for this number to keep on increasing. One example of this shift is the company DraftKings offering a wide assortment of games that are not accessible in Europe. For instance, the site allows gamers to play titles that are based on some popular US sports like “Baseball Blackjack”. 

Closing Thoughts

As we mentioned, the main difference between the legal frames of these two gaming worlds is the fact that in Europe, each country can individually regulate its gambling laws, whereas, in the US, they need to be in accordance with federal law. But this is just one of many factors that make the distinction. In fact, seeing that gambling is becoming more and more popular, countries and states all over the world are trying to bring the matter into their own legal frames.

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