Just a few years ago, entering new GEOs was primarily seen as an opportunity to add more volume.

In 2026, geography directly affects traffic economics and the level of risk.

In the UK, Remote Gaming Duty increased from 21% to 40% on April 1, 2026. In the Netherlands, the gambling tax rate has stood at 37.8% since January 2026. At the same time, the KSA estimates GGR-based channelisation at just 53%, even though around 91% of players use only licensed operators.

These changes also affect performance marketing. The same CAC can produce completely different economics after changes in taxation, regulatory requirements, or market rules.

That is why traffic teams need to evaluate GEOs beyond CPM, CPA, or available audience size.

Europe: regulation is having a growing impact on traffic economics

The UK is one of the clearest examples.

The increase in Remote Gaming Duty from 21% to 40% directly changes the financial model for remote gaming operators. Even with the same user acquisition cost, an acceptable CAC may now look very different.

The Netherlands illustrates another side of regulatory pressure.

According to Kansspelautoriteit, the legal online gambling market contracted in 2025, while GGR-based channelisation stood at around 53% in the second half of the year. The regulator links these changes, among other factors, to new player protection measures and the increase in gambling tax.

For performance teams, this context matters. Stable campaign metrics do not necessarily mean that the economics of the GEO as a whole have remained unchanged.

LATAM shouldn’t be treated as one stable market either

Until recently, Brazil was one of the most prominent examples of a newly regulated iGaming market taking shape.

Operators paid R$30 million for a five-year licence covering up to three brands, while the government introduced additional advertising restrictions in 2026.

Then, on September 25, 2026, the situation changed dramatically: the federal government signed a temporary act prohibiting fixed-odds betting, including its provision, intermediation, and advertising within the country.

From a GEO perspective, this is a particularly telling case.

Even a major market that has already attracted international operators and established a regulatory framework can change its rules quickly.

That is why LATAM should be analysed country by country. Brazil, Peru, Colombia, and other markets differ in maturity, regulation, and traffic economics.

Why a cheaper GEO doesn’t necessarily mean a more profitable GEO?

In media buying, it is easy to compare markets based on the initial cost of acquisition.

For example, CPA may be lower in one GEO and significantly higher in another.

But that is not enough to evaluate their actual potential.

Traffic economics are influenced by:

• user acquisition cost;

• regulatory and tax conditions;

• competition for the audience;

• payment infrastructure;

• acquired user behaviour;

• LTV and payback period;

• overall market stability.

A large audience or a low CPA alone therefore says very little about the actual potential of a GEO.

GEO diversification as part of risk management

In performance marketing, the risk of relying too heavily on a single traffic source has long been understood.

If a significant share of results depends on one platform, a change in its algorithm, advertising policy, or available inventory can quickly affect campaign performance.

The same logic applies to GEOs.

In the UK, the tax burden is changing. In the Netherlands, regulatory pressure is increasing while the legal sector’s share of GGR is declining. In Brazil, the legal status of the market itself can change within days.

That is why geographic diversification is increasingly becoming part of risk management.

For traffic teams, this means evaluating a market together with its regulatory context, acquisition economics, and audience value.

How Toba Traffic evaluates GEOs

At Toba Traffic, evaluating a new GEO starts with much more than CPA.

The team looks at the market as a whole: competition, available traffic sources, regulatory context, acquisition costs, and downstream audience metrics.

Once campaigns are live, actual performance data is added to the analysis: FTDs, average deposit, repeat deposits, LTV, ROI, and payback period.

As a result, two GEOs with the same CPA can have completely different economics.

Likewise, a GEO that looked strong six months ago may require a complete reassessment after regulatory or tax changes.

That is why, for Toba Traffic, working with GEOs means continuously analysing both market conditions and performance data rather than making a one-time decision about where to launch a campaign.

In 2026, GEOs need to be evaluated together with regulation

iGaming markets are changing fast.

The UK shows how significantly taxation can affect operator economics. The Netherlands demonstrates how regulation and player protection measures can reshape the structure of the legal market. Brazil shows how quickly the regulatory status of a major GEO can change.

So today, the question goes far beyond “Where can we buy traffic more cheaply?”

For performance teams, what matters is understanding the economics behind that traffic and how stable the conditions in a specific GEO actually are.