Greece's online gaming market has expanded exponentially over the last decade, and it is one of the most dynamic in Southern Europe.
However, the country’s regulatory landscape was once plagued by uncertainty and gray-market firms; nowadays, it is overseen more tightly by the state, with the twin objectives of boosting tax revenues and protecting consumers.
Yet, under the official modernization, there is a less obvious struggle between optimizing state loss and creating a healthy, competitive industry.
A Revitalized Betting Market
For a long time, the Greek gaming market was fragmented and largely unregulated. Foreign sites held sway over the market with few restrictions placed on tax collection by the state and little protection for players against fraud or abuse.
Local operators were at a disadvantage, and players had little chance of playing safely and openly at a secure venue.
The gray-market environment denied the state significant tax revenue as well as fostered uncertainty that made investment in the market unwelcome over the long term.
The revolution happened in 2021, when Greece introduced an all-inclusive licensing regime for online gaming operators. The Hellenic Gaming Commission established transparent entry, operating compliance, and monitoring rules to govern the local market.
Reviews of local Greek operators by Casino18 suggest that the number of available brands has only grown since 2021, which also indicates more tax revenue from the iGaming sector for the Greek government, which was the core initial purpose of liberalizing the Greek betting market, which was also actively advocated by the European Union.
The Importance of Tax Revenues
Online gaming regulation and taxation serve not only the purpose of protecting consumers. The gradual de-monopolization of the gambling industry in Greece started in 2011, which came only three years after the 2008 financial crisis, which wrecked the Greek economy, and at which point the government had to find sources of tax revenue to stabilize public finances.
Taxing the gross gaming revenue at rates between 35-40% has created new revenue sources for the Greek budget, turning the iGaming sector into a major cash cow for the local regulatory body.
Gaming licenses and taxes on winnings now generate over EUR 300 million a year for the Greek government, which is a significant source of revenue for a single sector of the Greek economy.
Consumer Protection and Regulation
Alongside taxation, Greece has introduced tight regulations on where and what types of advertisement channels online gaming companies can use, which limits their marketing capacity.
Deposit limits and self-exclusion features are also required for every casino and sportsbook operating in the country. These rules are in place to protect the local users against the risks that come with online gambling and are standard practice in many jurisdictions across the EU.
On the other hand, regulations that are too strict risk driving away and disincentivizing online betting companies from remaining on the Greek market, which is a tightrope the HGC walks when making adjustments to how the iGaming sector is governed in the country.
Operators Against the Regulator
The mismatch between strict local regulations and the demands of casino operators has made new regulations contentious. The dispute is over Greece's two goals, which are maximizing state takings while making the market fair, appealing, and competitive.
Operators find the system, though more transparent than previously, still largely skewed to state interest. There are excessive license fees, excessive tax burdens, and promotion bans to make sure newcomers can't thrive.
For this purpose, deep-pocketed international companies can more easily pay these rates than smaller local operators, and this leads to a market dominated by monolithic international giants.
While this assures stable revenues for the government, it may stifle innovation and lower consumer choice in the long term.
The Players’ Perspective
For Greek players, regulation has meant plain benefits. Authorized sites provide enhanced security, clear odds, and safe payout structures.
But players also react to the tax burden. Taxation of winnings has led some to question if it is worth playing on regulated sites, particularly since offshore bookmakers remain able to tempt gamblers with tax-free payouts and more generous promotions.
This places players in a precarious position and queries if consumer protection goals are being eroded by the fiscal motivations of the Greek government.
Therefore, the point of contention does not only exist between the regulator and betting companies, but the state and the players. To resolve these issues, the HGC will have to arrive at a more balanced level of taxation and partially loosen its regulatory grip on the market.
