Are stricter rules and rising costs reshaping European gambling strategy?

In markets across Europe, from Lithuania to Italy and the UK, regulatory changes are driving consolidation, favouring well-capitalised operators while smaller players struggle to compete. 

Acquisition provides strategic Lithuania entry for Fortuna

Most recently, Fortuna Entertainment Group (FEG) made a major move into the Baltic region by acquiring a 70% stake in Topsport, Lithuania’s leading omnichannel gaming operator.  

FEG’s decision to acquire Topsport rather than enter the market organically appears strategic. Lithuania’s gambling market has seen steady growth over the past decade, with gross gambling revenue rising from €44.6m in 2010 to €274.1m in 2025.

Yet, at the same time, the sector has faced increasingly strict regulation. Normally, this would be considered a barrier to entry.

Key changes include restrictions on gambling advertising and sports sponsorship in July 2025, the introduction of a minimum gambling age of 21 for both online and land-based play from November 2025, and higher gambling taxes implemented at the beginning of the same year.

But, against this backdrop, the acquisition gives FEG access to an established infrastructure, regulatory expertise, and a dominant market share in a highly competitive environment.  

It also reflects a wider trend across Europe, where acquisitions are increasingly the preferred route for entering heavily regulated gambling markets. Because operators with scale know hostile regulatory environments can reduce competition.

Do big operators thrive in expensive markets?

In the UK, for example, remote gaming duty will rise from 21% to 40% in April 2026. Rob Wood, Former Entain CFO, recently told Global Gaming Insider: “We don't know exactly how things will materialise in the UK – but we do know the UK is an opportunity for us. We are very profitable there. Most operators will really struggle in this new environment and we should gain share. We think we'll continue growing at a 5-7% rate – which is consistent across our international segments.’’

At ICE Barcelona, Bally's Chairman Soo Kim made a similar point when he joined Global Gambling Insider on The Huddle. Soo Kim discussed Bally's strategic positioning following its Intralot merger and, again, emphasised the strategic opportunity in the UK.

These developments suggest that higher market costs may favour larger, well-capitalised operators, raising the question: is Europe entering an era in which only the “big dogs” can thrive? 

Remember the Italian €7m online gambling licence?

Italy’s gambling regulator launched a new online licensing system on 13 November 2025, issuing 52 licences to 46 operators. In comparison, the previous tender attracted 93 applications. The reform ended the use of multiple skins, forcing hundreds of affiliated sites to close and limited each operator to one domain per licence.  

Many operators criticised the high costs and market consolidation was expected as soon as the tender prices were announced. 

Here, even some major international brands, including Betway and Unibet, opted out, further consolidating the market.

Consolidation favours scale and expertise

The Lithuanian, UK, and Italian examples all show a common pattern: stricter regulations and higher costs tend to favour large, well-capitalised operators.

There will no doubt be more examples, highlighting a simple fact: smaller players struggle to meet compliance requirements, while market leaders can leverage existing infrastructure, regulatory experience and financial resources to expand.

The script has been somewhat flipped: increased regulation now is actually attracting higher activity from the very biggest gambling groups.