SOFTSWISS has released its latest iGaming Trends 2027 report, revealing continued global growth in online gambling, but emphasizing distinct regional operational and regulatory disparities, particularly in taxation. The report, unveiled this week, is informed by data from H2 Gambling Capital and insights from WorldGaming alongside contributions from major technology firms like AWS.
SOFTSWISS anticipates that global online gambling gross gaming revenue (GGR) will rise from $349 billion in 2026 to $415.5 billion by 2028, translating to a compound annual growth rate (CAGR) of roughly 9% during this period. Mobile platforms are highlighted as the key driver, with their share of onshore GGR expected to increase from 45% to 78% by 2028.
Europe, although still the largest regulated online gambling market, is experiencing regulatory pressures that could impact its growth. The report forecasts that GGR in Europe will go up from $85.3 billion in 2026 to $95.2 billion in 2028, achieving a CAGR of 6%. However, growing scrutiny from regulators is evident, with new taxation and restrictions being imposed. Significant interventions include regulations across 30 jurisdictions that set limits on gambling and specific product rules, such as Germany's limits on slot stakes, mandatory delays between spins, and caps on deposits across operators.
In the UK, proposed online slot stake limits of £5 and £2 are being discussed, while the Netherlands mandates monthly deposit caps of €700 for players over 24 and €300 for younger individuals. Such regulatory measures could drive customers to unlicensed operators, diminishing the competitiveness of licensed platforms. The report noted a concerning trend: in the Netherlands, the regulated market share fell below 50% after a tax increase to 37.8% on GGR. Similarly, offshore GGR in Great Britain is forecast to increase by 110% by 2028, despite rising remote gaming duties.
Central and Eastern Europe, in contrast, are emerging as innovation hotbeds, with successful operators like Greece’s Betano and Romania's Super Technologies rising in prominence.
Meanwhile, North America is projected to see the fastest growth, with online GGR expected to jump from $58.1 billion in 2026 to $76.6 billion by 2028, marking a 15% CAGR for both the US and Canada. The US market remains fragmented, with full online casino access granted in just seven states and sports betting available in 38 states. In 2025, US online GGR saw growth of 27.6%, reaching a record $10.74 billion, with Michigan, New Jersey, and Pennsylvania contributing nearly 90% of this figure.
Brendan Bussmann, managing partner at B Global, commented, "The US market has and always will be a marathon and not a sprint. It’s a different conversation for a host of reasons in terms of the nature of gambling, but also in the stakeholders trying to bring a regulated market. Until these stakeholders can get a single plan, delays will continue to persist at the legislative level."
In Latin America, online gambling is forecasted to grow from $19.7 billion in 2026 to $22.7 billion by 2028, showcasing a CAGR of 7%. The region has experienced significant increases in channelisation, particularly following the introduction of licensed betting in Brazil nearly two years ago, where regulated market share soared from 15% in 2022 to 65% in 2026, with expectations to reach 70% by 2028. Notably, Brazil’s legal online betting industry faced a sudden closure, but prior to the shutdown, federal betting tax revenues surged to R$3.397 billion in Q1 2026, indicating a year-on-year increase of 123.7%. Following the government's recent actions, unauthorized gambling platforms have increased by 141%.
The report also mentions Colombia’s imposition of a strained 19% VAT on deposits, which reportedly reduced online GGR by nearly 30% before it was suspended. Peru’s 1% levy on wagers has attracted criticism for being detrimental.
In Africa, online GGR is projected to rise from $13.6 billion in 2026 to $17 billion by 2028, representing a CAGR of 12%. Sports betting dominates, accounting for 79% of online GGR in 2026, even as online casino gambling starts to pick up pace. South Africa boasts a projected interactive gross win of over $5 billion by 2030, but restrictions on fixed-odds casino games have pushed a significant portion of gambling activity underground, driving an estimated R50 billion offshore annually.
The report identifies high processing fees posing challenges and explores solutions like trials for rand-pegged stablecoins. Promising growth potential is seen in Ghana, Kenya, Tanzania, and Uganda, although Nigeria's scale is overshadowed by regulatory issues.
In the Asia and Middle East region, online gambling demand is significant, despite limited domestic legal frameworks. The region's online GGR is projected to rise from $162.8 billion in 2026 to $193.7 billion by 2028, predominantly from offshore sources. In the UAE, a license was granted to operator Momentum, which now runs the only licensed iGaming and betting site, Play971.
Oceania, classified as a mature market, is anticipated to see modest growth from $9.5 billion in 2026 to $10.3 billion in 2028. Australia maintains the highest per capita gambling expenditure globally.
A major theme emerging across regions is tax design and timing. The report suggests that aggressive taxation often appears early in the market lifecycle and dramatically influences player behavior. Additionally, it highlights the importance of channelisation in maintaining competitiveness within regulated markets. Gonzalo Perez, CEO at Apuesta Total, emphasized the risk posed by unregulated competitors, saying, "What worries me is that some policymakers still underestimate how quickly players can migrate to the black market if the regulated experience becomes less competitive. In iGaming, the real competition isn’t another licensed operator, it’s the unregulated one that pays no taxes and follows no rules."
