It has been quite a start to 2021 after a new report released by H2 Gambling Capital, which looked at the financial results of 15 gaming operators and suppliers, presented an average online B2C revenue growth of 38% year on year. Although there was a slight decline in B2C revenue following a strong Q4 2020, data for 2021 already shows a strong year ahead.
The 15 companies analyzed showed very strong growth in the US, Asia, and Australia, but did not see the same exponential growth in Germany, Sweden, Norway, or Finland.
Sports Drives Growth
Since the return of professional sports, sports betting revenue has shown strong year-on-year growth of 51%, while iGaming revenue grew 28%, which presented an overall rate of growth of 38% from Q1 2020.
As mentioned, online gambling all around was a bit stronger in Q4 of 2020, wherein sports wagering was up 58% and iGaming up 32% YoY.
Europe Not Performing Well
Revenue is stalling out in many European countries but in Germany and Scandinavian countries, some have seen it drop as much as 50%-70% year-on-year. This was partly due to new regulations in Q4 2020, but, payment processing has also been a setback in counties like Norway.
Moreover, in Denmark, there was a steep tax increase and in Sweden, COVID-19 restrictions led to major losses.
The expectations from H2 are that sports wagering will continue to perform strongly year-on-year. Sports were put on hiatus in Q2 2020 but are back in full swing today. In fact, sports gambling will continue to outperform due to the European Championships and the Copa America football tournaments taking place towards the end of the second quarter.