The latest iGaming Trends 2027 report from SOFTSWISS presents a global overview of the online gambling sector, highlighting distinct regional differences influenced by varying regulatory approaches and taxation policies.
Released this week, the report utilizes data from H2 Gambling Capital and insights from WorldGaming and leading technology companies like AWS.
SOFTSWISS anticipates that the global online gambling gross gaming revenue (GGR) will rise from $349 billion in 2026 to $415.5 billion by 2028. This represents a compound annual growth rate (CAGR) of about 9% during this period.
Mobile platforms are driving this growth, with expectations that mobile GGR will increase from 45% in 2026 to 78% by 2028.
In Europe, the largest regulated online gambling market, GGR is projected to increase from $85.3 billion in 2026 to $95.2 billion in 2028, yielding a CAGR of 6%. However, the region is under intensifying regulatory scrutiny, involving stricter taxation and product restrictions.
Regulatory measures have been instituted across 30 European jurisdictions, including Germany’s limits on slot stakes and mandatory delays between spins, along with the UK's move towards reducing online slot stakes.
In the Netherlands, a cap on monthly deposits of €700 for adults and €300 for younger players is in place. The report cautions that rising taxes and product limits may push customers toward unlicensed operators, threatening the competitiveness of regulated platforms. The issue of channelisation is emphasized as essential across Europe, illustrated by the Netherlands, where the regulated market share fell below 50% in early 2025 following a tax increase to 37.8% of GGR. In the UK, GGR from offshore operators is expected to rise by 110% by 2028, despite increases in the remote gaming duty.
Shifting focus to North America, the region is expected to experience the fastest growth, with GGR anticipated to increase from $58.1 billion in 2026 to $76.6 billion by 2028, showcasing a CAGR of 15% across the United States and Canada. The market remains fragmented, with full online casino authorization granted in only seven states and sports betting available in 38.
US online GGR grew 27.6% in 2025, reaching $10.74 billion, with Michigan, New Jersey, and Pennsylvania contributing nearly 90% of that revenue. The landscape is becoming more complex due to the emergence of prediction markets and legal challenges, including a pending Supreme Court review on these aspects.
Brendan Bussmann, managing partner at B Global, remarked, "The US market has and always will be a marathon and not a sprint," emphasizing the unique challenges within this segmented landscape.
In Latin America, the online gambling market is forecasted to grow from $19.7 billion in 2026 to $22.7 billion by 2028, marking a CAGR of 7%. The introduction of licensed betting in Brazil has significantly boosted the regulated market share from 15% in 2022 to 65% in 2026, anticipated to reach 70% by 2028.
Despite this promising outlook, Brazil recently announced an abrupt closure of its legal online betting industry. Prior to this decision, the sector had contributed R$3.397 billion in federal betting tax revenues in Q1 2026, reflecting a 123.7% increase year-on-year. Following the announcement by President Lula, there has been a notable rise in unauthorized gambling platforms.
Colombia’s emergency 19% VAT on deposits in 2025 led to a nearly 30% decline in online GGR before being lifted, while Peru’s 1% tax on wagers has been criticized.
Moreover, local payment methods are vital, with Brazil's instant Pix solution accounting for 91% of market transactions.
In Africa, the online GGR is expected to increase from $13.6 billion in 2026 to $17 billion in 2028, indicating a CAGR of 12%. Sports betting dominates the segment, comprising 79% of online GGR in 2026, although online casinos are quickly gaining traction from a smaller base. South Africa leads in market maturity, with projections of interactive gross win surpassing $5 billion by 2030.
However, a court ruling in 2025 limiting fixed-odds casino games has driven a significant portion of gambling activity underground, shifting around R50 billion offshore annually. High processing fees present another challenge, prompting experiments such as a stablecoin trial.
Growth potential exists in markets like Ghana, Kenya, Tanzania, and Uganda, with Nigeria presenting both opportunities and regulatory hurdles.
Peter Emolemo Kesitilwe, CEO of the African iGaming Alliance, remarked, "Africa is increasingly recognised as one of the most dynamic and strategically important regions in global gambling."
The Asia and Middle East regions showcase considerable online gambling demand without robust domestic regulations, projecting GGR to rise from $162.8 billion in 2026 to $193.7 billion in 2028. The UAE has initiated regulatory measures by granting a license to operator Momentum, leading to the launch of the Play971 site.
Oceania, seen as a mature market, predicts modest growth from $9.5 billion in 2026 to $10.3 billion in 2028, while Australia maintains the highest per capita gambling expenditure globally.
The report highlights critical themes across these regions, including the design and timing of tax regulations, indicating that aggressive taxes often emerge during initial market development phases. The concept of channelisation emphasizes the importance of maintaining competitiveness within regulated markets to prevent player migration to unregulated areas. Gonzalo Perez, CEO of Apuesta Total, cautions that regulators must understand the swift migration of players to the black market should the regulated experience falter in attractiveness.
Overall, SOFTSWISS outlines both opportunities and challenges in the evolving global online gambling landscape across diverse regions.
