Understanding Key Markets to be Examined at SBC Summit 2024

For brands operating across various global markets, a deep understanding of each market, considering regulatory restrictions, player behaviour, localised marketing strategies, and available gaming platforms, can be the difference between stress and success. 

With this in mind, SBC Summit’s conference program, held at the Feira Internacional De Lisboa from September 24-26, will offer delegates the opportunity to gain a comprehensive understanding of some of the most interesting global markets in the industry with sessions dedicated to key markets such as the UK, North America, Latin America, Europe, and Asia.

But what makes these markets so important?

This blog post will provide context and insights into these markets, highlighting their significance to the industry, the potential they offer, and the reasons they are slated for discussion at the event.

The UK

The relationship between gambling and the UK is as old as time, with the earliest records of gambling dating back to 1539 with horse racing in Chester. Unlike many other global markets, casinos, sports betting, bingo, and lottery have been staples of British culture for decades, with the recent emergence of iGaming also seamlessly integrated into everyday British life.

In terms of global scale, the UK market stands as one of the most successful modern markets in the world, holding the largest online market. The UK market made £14.1 billion in gross yield (profit before taxes and expenses) in the 2022-23 financial year, with 44% of adult Britons stating they gamble at least once a month, according to a recent government gambling report. 

In April 2023, the UK gambling and sports betting industry was handed the ‘White Paper’ report, a government proposal that would shake up the industry on an unprecedented scale. The report set out plans for radically reduced stake limits for online games, affordability checks, tougher restrictions on VIP schemes, the establishment of an independent gambling ombudsman and a statutory levy for betting brands to fund addiction treatment and research. 

With 2024 set to transform the UK betting landscape further, with the release of a new ‘White Paper’, many in the industry are stuck in an operational lingo, caught between implementing the proposed changes from last year’s reform and waiting for the 2024 edition to see if any further regulations that need to be adhered to. 

UK-focused panels taking place at SBC Summit include:

• Spotlight on the UK white paper: how far do proposed regulations go for players and operators? 

• UK: Leaders Panel

Europe

Europe stands as one of the most successful and dynamic global markets in sports betting and gaming. In spite of the global impact of the recent pandemic, the European gambling market reported a revenue of €108.5 billion in 2022, with online gaming alone contributing €38.2 billion, an impressive 35% of the total revenue, highlighting the region’s active and engaged player base. 

Amongst the region’s active player base, a staggering 58% of bettors admit to placing bets on one or more sports games a week. Additionally, a further 76% of participants admitted to betting at least once a month, underscoring the consistent nature of player behaviour seen within the market and the untold potential for brands seeking to operate in the area. 

The European region consists of a plethora of dynamic markets, forming a patchwork of localised regulations for brands to navigate. On one hand, this presents brands with the opportunity to diversify their output, test localised marketing strategies, and broaden their operations. On the other hand, the European region contains a multitude of regulatory hurdles for companies operating in multiple jurisdictions, to overcome.

In 2024, a variety of initiatives, such as mandatory digital IDs for players, sporting events like the Euros 2024, and political elections in key markets, are set to impact the region’s landscape on a transformative scale. These developments will provide delegates with numerous considerations to master in order to achieve success within the region.

European-focused panels taking place at SBC Summit include:

• EU ID
  
• Europe Leaders Panel
• UEFA Euro 2024: What did we learn?
• Finland: The next big player in Europe?

North America/US

Since 2018 North America has emerged as one of the most promising and exciting global markets. Sports betting is now legal in over 38 US states, with projections suggesting it will soon be one of the most lucrative global markets, reaching revenue of $20.41 billion by 2029.

As of June 2024, iGaming in North America has yet to kick off in the same way sports betting has, with only six states having regulated iGaming, including New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut, and Rhode Island. 

Despite the slow integration of iGaming, states such as Pennsylvania and New Jersey have already demonstrated iGaming’s untold potential and future success. In October 2023, Pennsylvania’s iGaming revenue increased by 24% month-on-month, reaching $154.8 million, an incredible three times the sports betting intake. Additionally, New Jersey reported revenue of $166.8 million, marking a 13% year-on-year increase for iGaming. With such a strong introduction into the region, 2024 looks set to see the regulation of several more states, including Indiana and New York.

However, despite the vast potential for both sports betting and iGaming operators, a combination of complex state-by-state regulations, an upcoming presidential election, divided cultural viewpoints on the industry, and stiff competition, has left many in the industry seeking innovative new strategies to foster growth, build brand trust, and ensure sustainability in the region.

North American-focused panels set to take place at SBC Summit include: 

• Betting on Politics: US Presidential Election
• You say tomato: player protection in the US vs Europe
• Can compliance influence regulation in the US?
• North America Leaders Panel: is the goose still golden?
• Understanding a $50bn industry: a focus on Tribal Gaming
  
  

LATAM 

For those of you who have attended SBC Summit Latinoamérica, you will be acutely aware that the Latin American region has cemented itself as one of the most promising regions across the globe. In recent years, the Latin American sports betting market has seen a substantial increase in revenue, growing from $1.21 billion in 2019 to $3.62 billion in 2024, marking a 199% increase, significantly outpacing the GDP growth in the region.

However, it is not just the region as a whole that has found success in sports betting. In 2023, Mexico’s sports betting revenue reached $1.086 billion, while Colombia generated $729.8 million, Argentina reported $500 million, and Peru recorded a revenue of $149.9 million.

In addition to sports betting, the rise in mobile penetration for countries like Mexico and Brazil has resulted in a surge of activity for online gambling with Statista reporting 147 million people in Latin America estimated to be mobile gamers in 2020. Additionally,  Statista predicts Latin America’s online gambling market will grow exponentially to $3.4bn in 2025. 

Another element that makes Latin America particularly attractive to operate in, is the diverse gaming preferences of players across the region. Many engage in traditional gaming verticals such as lottery, bingo, and horse racing, alongside global juggernauts like sports betting and iGaming. This broad spectrum of gaming interests, not only expands opportunities for brands looking to establish themselves within the region but also allows brands operating across multiple industry verticals to adapt their offerings, depending on each market’s regulatory restrictions.

One point of contention for the Latin American region is its patchwork regulatory landscape that can often prove complex to navigate. With so many markets differing in regulations, many brands struggle to keep up to date with the latest changes, and how to operate multi-regionally. 

However, recent years have sparked some hope in Latin America’s gaming industry. Brazil’s regulatory advancements, along with countries like  Peru and Uruguay adopting new regulations to stimulate growth and protect consumers, and Argentina’s province-based regulatory framework, all show potential for strategic partnerships and market development.

SBC Summit’s upcoming agenda will aim to shed light on this dynamic region, presenting delegates with strategies to conquer shifting regulations, the potential for iGaming, as well as the impact of sports events on the industry. 

Latin American-focused panels taking place at SBC Summit include:

• LatAm: Leaders Panel
• Futbol in LatAm: What next for commercial partnerships? 

BRAZIL

In 2018, Brazil witnessed a momentous decision that would shape the future of sports betting. Fast-forward to December 2023, after much deliberation and back-and-forth, Brazil’s chamber of deputies voted to approve online gambling, giving the green light for market regulation in late 2024.

Since the market’s green light for regulation, the Brazilian sports betting market is projected to generate substantial revenue of at least R$10 billion annually for public services and various sectors of the economy​.

Additionally, operators are now required to pay an initial licensing fee of BRL 30 million (approximately USD 5.5 million) for a five-year license​. Over 130 companies have expressed interest in obtaining licenses to operate in Brazil, highlighting the market’s attractiveness to both local and international investors.

Although sports betting has held primary attention over the past couple of years, Brazil also has a flourishing online gaming market. With its expanding infrastructure and growing tech sector, Brazil’s online gaming market is expected to grow from $2.1 billion in 2021 to $2.6 billion by 2026, underscoring its potential to be a global leader in the online gaming landscape. 

After the monumental success of the inaugural SBC Summit Rio in March 2024, SBC Summit will continue the Brazilian discussion with a number of Brazilian-focused panels covering the market’s potential, the future of the market and the importance of seamless payments. 

Brazilian-focused panels taking place at SBC Summit include: 

• Boom in Brazil: reporting from South America’s formerly sleeping giant
• Payment familiarity in Brazil: The path to successful regulation

AFRICA

With the surge of internet and mobile access across African markets, the African sports betting market is projected to grow significantly, with total market revenues expected to reach $6 billion by the end of the decade. 

The region’s reliance on mobile phones as the primary device for betting has allowed space for online gaming and the iGaming sector to dominate the market, accounting for 70% of all betting transactions.

The region’s preference for online gaming has also facilitated the rise of other online-specific verticals, with newer trends such as crash games, instant reward games and esports becoming a dominating interest in the region. This is no more prevalent than in South Africa where 51% of participants surveyed in a recent YouGov poll, showed an interest in betting on esports, and 39% expressed interest in playing fantasy sports for money, outperforming the United Kingdom, the United States, Brazil, India, Argentina, Mexico and Denmark.

Dedicated panel on the African betting landscape include:

• Africa: Leaders Panel

ASIA

Recent studies have shown that the online gambling market in Asia is projected to reach a dizzying height of $26.8 billion by the end of 2024, proving itself to be an extremely prosperous market, and showing untold potential.

With such a diverse array of individual markets in Asia, the region presents a plethora of opportunities for both sports betting and iGaming operators. For example, sports betting is highly popular in China and Vietnam, where bookmakers are known for their low margins and high betting limits, attracting professional gamblers worldwide​, while mobile gaming and eSports dominate in South Korea​.

In recent years, there has been significant discussion about Asian markets transitioning from black and grey markets to more regulated environments, similar to recent changes in Brazil. While each market will require its own specific legislation to achieve proper regulation, up to80% of such legislation  could potentially apply universally across all regions. Countries would then need to address the remaining 20%, which is specific to their individual needs. These developments inspire optimism within the industry and position Asia as a promising and potentially lucrative market.

Dedicated Asia-focused panels featured at SBC Summit include: 

• Asia: Leaders Panel

FINAL THOUGHTS

The global sports betting and iGaming landscape is an evolving tapestry of emerging, fruitful and dynamic markets waiting to be utilised by brands. The upcoming SBC Summit is set to provide delegates with a comprehensive breakdown of these key markets, offering dedicated discussion on regulation, localised marketing approaches and evolving player preferences.