Industry predictions for 2025: A crackdown on crypto and tax hikes galore

Christer Fahlstedt, Paf CEO

Governments become gambling addicted

With the ever-increasing tax rates on gambling seen across Europe, governments appear to be developing their own form of addiction – not to gambling itself, but to the substantial revenue it generates. 

Gambling taxes have become a crucial component of many national budgets, providing an increasing stream of income. As a result, the authorities’ appetite for tackling gambling addiction among the population may begin to wane. 

At the end of the day, this revenue is not just convenient; it is sorely needed. Gambling taxes are an easy political target. Unlike other taxes, gambling levies rarely provoke widespread public outcry, allowing policymakers to increase rates with minimal resistance.

However, the long-term consequences of this strategy cannot be ignored. Those most vulnerable to gambling addiction – often individuals who are already struggling financially or psychologically – risk being overlooked. 

Their wellbeing is increasingly sacrificed on the altar of the political path of least resistance as governments prioritise short-term financial stability over the welfare of their citizens.

Authorities finally get tough on crypto

Long overdue, but better late than never – authorities are finally waking up to the challenges posed by crypto gambling and recognising the urgent need for intervention. 

For too long, the rapid rise of cryptocurrency has gone largely unchecked, creating an unregulated playground where financial scrutiny and taxation are deliberately avoided. 

Cryptocurrency’s foundational appeal lies in its promise of anonymity, decentralisation and freedom from traditional oversight. 

However, these very characteristics make it a haven for activities that undermine governmental control, including tax evasion, money laundering and illicit gambling. Crypto gambling thrives in the shadows, outside the purview of regulators and tax authorities. 

The era of turning a blind eye to crypto gambling is over – and about time.

The ongoing surge in youth gambling addiction finally gets noticed

At long last, authorities and the public are beginning to recognise a growing and deeply concerning trend: our children are being ruthlessly targeted and turned into gambling addicts by popular games such as FIFA and Counter-Strike. 

These games, marketed as harmless entertainment, are embedding gambling mechanics into their core design, exposing young players to behaviours that mirror traditional gambling from an alarmingly early age. Loot boxes and skin betting – thinly veiled forms of gambling – are at the heart of this issue, and their impact is devastating.

This system preys on the psychological vulnerabilities of young people, exploiting their developing impulse control and susceptibility to flashy rewards. 

For too long, game developers and publishers have hidden behind claims that these features are harmless or optional. They argue that loot boxes and skin betting are simply “innovative gameplay elements”. In reality, they are cynical commercial strategies aimed at exploiting a vulnerable demographic.

Tom Rundle, Dabble CEO

Wagering taxes will be raised

With government budgets under pressure globally, tax rates are likely to increase and put a lot of pressure on growth operators in regulated markets.

Taxes in US regulated markets range from less than 10% to 51% of gross gaming revenue (GGR). With such a massive discrepancy between the tax paid by operators and seemingly little impact on activity (Handle in New York amounted to $2.3bn in November despite its tax rate of 51%), many US states will follow the lead of Illinois and increase taxes further.

In Europe, the French senate has passed legislation to increase taxes to about 60% of GGR, although a new government may see this not come to pass. Over in Australia, Victoria’s point of consumption tax increased from 1 July 2024 and more increases in other states would not be a surprise.

The sentiment globally is clear: to pay for government spending, gambling taxes are an easy target for treasuries.

Gambling advertising restrictions will be imposed

The wider population simply doesn’t like gambling ads, and they are making their concerns known. A large part of the concern is around children’s exposure to gambling while consuming sports broadcasts. This includes shirt sponsorships (which the English Premier League has agreed to ban), but more importantly restrictions to what can be shown on sports broadcasts, when and how many ads can be shown.

Both the US and Canadian governments have seen efforts to restrict gambling advertising be introduced but fail to get enough support to be passed. Australia’s government has still not responded to a report that recommended advertising be banned. Whatever the outcome, it is expected advertising will be further restricted.

Just as the saturation of gambling in sporting broadcasts in Australia created some public support for a full advertising ban, we should expect to see national and state legislators across the globe restricting advertising on sports broadcasts, simply because it will be a popular move with some voters.

Dabble will enter a new market

Dabble launched in Australia in 2021. It quickly gained traction with its differentiated products and services that fostered a community rather than just being a betting app.

We launched in the US with our DFS app in 2023, where we quickly gained customers through the same principles of ease of use of the app and community vibes.

In 2025, Dabble will launch into a new market again and quickly get traction with a new audience using the same core components of an easy-to-use app that will help build a new community. This will happen while continuing to grow in our Australian and US markets.