The Balkan offline gaming industry, flourishing for the last decade, is now experiencing a real iGaming boom. Let's explore how the countries in the region have adapted to this change.
The Balkan Peninsula comprises several countries that are fully or partially located there. These include Albania, Bulgaria, Bosnia and Herzegovina, Greece, Romania, North Macedonia, Serbia, Slovenia, Turkey, Croatia, and Montenegro.
If Greece and Turkey are the gambling giants of the Balkans with multimillion-dollar revenues from betting, online, and offline casinos, then what do the other countries of the peninsula represent in this field? Let's consider each direction.
Bulgaria
In recent years, the Bulgarian online gambling market has been growing at double-digit rates. The number of gaming operators has increased from 6 to 16 from 2020 to 2022. They compete for a share of the sector's gross revenue of 1 billion leva (about 500 million euros) per year, which represents the amount of revenue minus the paid-out winnings. Industry experts estimate the volume of the gambling business in Bulgaria to be several billion leva in bets. The amount of taxes, which are calculated as a percentage of gross revenue, reached 251.2 million leva in 2022.
Such growth rates were caused by several events. One of them was the revocation of licenses from private lotteries and the bookmaker Eurofootball in 2020. Thus, the state eliminated major players in the market, opening a gap quickly filled by other operators. Covid-19 also contributed to the growth of online gambling.
Romania
In Romania, along with the United Kingdom and Sweden (the mere mention of these countries in this context is significant), there has long been a legal online gambling market, offering numerous opportunities for both players and operators. The country has been a hub of gambling since the early 2000s, with high-level regulation of all gambling processes. The Romanian National Gambling Office (ONJN) is responsible for issuing licenses and ensuring compliance with regulatory acts. The success and benefits that this country has derived from its progressive stance on gambling are impressive.
Serbia
In Serbia, last year's revenue from the video game sector exceeded $110 million. This demonstrates how the country is rapidly transforming into a global gaming and technology hub, making it one of the largest players in Southeast Europe.
There are about 130 gaming companies operating in Serbia, employing around 3,000 people. Another positive factor is the existence of the Serbian Gaming Association, which represents the interests of the community.
Many major companies, including Endava and Ubisoft, have opened their offices in Serbia. Serbia is also home to Nordeus, a mobile game developer acquired by Take-Two Interactive in 2021.
The largest developers and providers with offices in Serbia are Playstudious Europe, 3Lateral, Digital Arrow, Fortuna, Ubisoft, Nordeus, Peaksel, Playrix RS, Two Desperados, Mad Head Games, Webelinx Games, Yboga, Brave Giant, Foxy Voxel, Bunker VFX, and Sozan.
According to Statista's forecast, by 2027, there will be more than 600,000 gamers in Serbia. With an expected population of 6.71 million people, this means that 9% of them are likely to be gaming in five years.
Slovakia
In Slovakia, the gaming industry increased its revenue to 80 million euros last year. According to statistics provided by the Slovak Game Developers Association, this corresponds to pre-COVID-19 levels.
There are more than 70 gaming companies in the country, involving around 1,300 people in the industry. The largest gambling companies are Pixel Federation, PowerPlay Studio, Inlogic Software, SuperScale, Nine Rocks Games, Blue Brain Games, Studio 727, Games Farm, NOISE artillery, QORPO, and 60fps.
The largest outsourcing companies based in Slovakia are SuperScale, Studio 727, Cassa Game Industry, and NOISE artillery.
Slovenia
Although the video game industry in Slovenia is relatively small, there are still some bestsellers from the country. The well-known app, Talking Tom Cat, was developed by a Slovenian company based in Ljubljana. Moreover, Slovenia hosts major gaming events and exhibitions such as the Slovenia Games Conference and Na meji nevidnega.
Approximately 400 people are employed in the industry.
The largest gaming companies in Slovenia include Outfit7, Arxel Tribe, and ZootFly.
Croatia
The growth of the gambling industry in Croatia is due to the significant interest in computer games, the worldwide popularity of local games, and numerous national and international esports competitions offering generous cash prizes.
Croatia has around 70 game developers. In 2019, the industry employed 230 people, and by 2021, this number had increased to 500.
State support for online games has been a significant driving force. In 2022, construction began on a gaming campus valued at 50 million euros in Novska. Its aim is to develop the video game industry in Croatia and the entire region. The complex is expected to be completed within two years. Among other objectives, this project primarily aims to attract more than 50 Croatian gaming startups.
Montenegro
The gaming industry in Montenegro is just beginning to develop. Statista estimates that revenue in the video game segment will reach $4.95 million in 2023. The annual revenue growth rate (CAGR 2023-2027) is projected to be 5.93%, increasing the market value to $6.23 million by 2027. The number of users in the video game segment is expected to reach 200,000 during the same period. User penetration will be 24.9% in 2023, increasing to 27.1% by 2027.
The largest segment in Montenegro is mobile games, with a market value expected to reach $3.06 million by the end of 2023.
Albania
In Albania, gambling has been banned since 2018, except for state-sanctioned casinos. However, at the end of 2022, Prime Minister Edi Rama announced that the ban would be lifted, as it did not help reduce the level of organized crime.
The draft law proposed by the Ministry of Finance and Economy aims to create a regulated online gambling market, with services provided by licensed companies.
Before the gambling ban, the country had over 4,700 gambling establishments. However, according to the new law, the number of issued licenses or opened accounts will be unlimited.
If passed, the law will lay the foundation for a new gambling industry operating in a safe environment and will provide a new source of revenue for the state.
Other Balkan states
The gaming market in Macedonia, Bosnia and Herzegovina shows limited revenue and growth indicators. Researchers attribute this to several factors:
- Lack of state funding for video game development;
- Absence of accessible education and a shortage of labor;
- Logistical problems with equipment and opening bank accounts;
- Absence of double taxation avoidance agreements;
- Difficulty accessing global markets;
- Challenges in attracting local and foreign investors;
- Lack of a competitive environment and regional/legal barriers.
Additionally, Macedonia, as well as Bosnia and Herzegovina, are not members of the EU, which puts them at a disadvantage.
However, considering that casino games are legal in these states, they are increasingly attracting the attention of players and potential investors.
