Industry Forecasts for 2025: Crypto Crackdowns and Widespread Tax Increases

  • UM News
  • Posted 1 year ago
00:00 / 00:00

### Christer Fahlstedt, Paf CEO

#### Governments’ Growing Dependence on Gambling Revenue

Amid rising gambling tax rates across Europe, it seems governments are developing an addiction—not to gambling itself, but to the lucrative revenue it provides. For many national budgets, gambling taxes have become an indispensable source of income, which might dampen enthusiasm for addressing gambling addiction within society.

Ultimately, this revenue stream is not just a convenience; it has become a necessity. Gambling taxes, unlike other forms of taxation, tend to increase without sparking major public backlash, allowing politicians to raise them with little opposition.

However, the potential ramifications of this approach should not be overlooked. Those who are most susceptible to gambling addiction—often individuals already facing financial or emotional hardships—may find their concerns disregarded. Their welfare is increasingly compromised in favor of governmental priorities focused on short-term fiscal stability, rather than the well-being of citizens.

#### Authorities Taking Action on Crypto

After a long delay, authorities are beginning to address the challenges posed by crypto gambling and are acknowledging the urgent need for regulation. The unchecked growth of cryptocurrency has fostered an unregulated environment where financial oversight and taxation have been largely ignored.

The appeal of cryptocurrency stems from its promise of anonymity, decentralization, and freedom from conventional regulation. However, these very traits make it an attractive option for activities that evade governmental control, such as tax evasion, money laundering, and illegal gambling. Crypto gambling flourishes outside the purview of regulators and tax authorities.

The era of ignoring crypto gambling has come to an end, and it was long overdue.

#### Rising Concerns Over Youth Gambling Addiction

Finally, there is increasing recognition from authorities and the public of a troubling trend: popular games like FIFA and Counter-Strike are drawing young players into gambling behaviors. These games, often marketed as harmless, include gambling elements that expose young people to risk at a very early age.

Loot boxes and skin betting lie at the core of this issue, mimicking gambling and having a profound impact. Young people are particularly vulnerable, as these mechanics leverage their developing impulse control and attraction to impressive rewards.

For too long, game developers have claimed these features are harmless or optional, labeling them as “innovative gameplay elements.” In reality, they are calculated commercial tactics aimed at exploiting a susceptible demographic.

### Tom Rundle, Dabble CEO

#### Anticipated Increases in Wagering Taxes

With budget pressures mounting globally, expect to see rising tax rates impacting growth operators in regulated markets. In the US, taxes on gross gaming revenue (GGR) range significantly—some less than 10%, others up to 51%. Despite the massive variation, high taxes like New York’s 51% haven’t deterred activity, evidenced by a $2.3 billion Handle in November. Following Illinois’ lead, several US states may increase their taxes further.

In Europe, the French senate has approved raising taxes to around 60% of GGR, although new leadership might alter this course. Australia, too, sees changes, with Victoria raising its point of consumption tax from July 2024 and potential hikes looming elsewhere.

Globally, gambling taxes are becoming a primary target for fulfilling government expenditures.

#### Imposing Restrictions on Gambling Advertising

Many in the general public oppose gambling advertising, chiefly due to concerns about children encountering such content during sports broadcasts. While the English Premier League plans to eliminate shirt sponsorships, the focus is on restricting the type, timing, and volume of ads shown during sports events.

Efforts to limit gambling advertising have emerged in the US and Canada but failed to gain enough traction for approval. Australia, meanwhile, has yet to act on a report suggesting a total advertising ban. It’s expected that future restrictions will tighten regulations around such advertisements.

As gambling continues to dominate sporting events in Australia, sparking public calls for a comprehensive ban, we can anticipate similar measures globally as legislators respond to public opinion.

#### Dabble’s Expansion into New Markets

Dabble launched in Australia in 2021, quickly gaining popularity with its unique offerings that foster community engagement rather than functioning as a mere betting app. In 2023, we debuted in the US with our DFS app, rapidly attracting users with its user-friendly interface and community focus.

In 2025, Dabble plans to enter yet another new market, swiftly appealing to a fresh audience through our easy-to-use app and community-building ethos. This will occur alongside continued growth in our existing Australian and US markets.

For further details, see [Industry predictions for 2025: A crackdown on crypto and tax hikes galore](https://www.egr.global/intel/insight/industry-predictions-for-2025-a-crackdown-on-crypto-and-tax-hikes-galore), originally published on [EGR Intel](https://www.egr.global/intel).

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