Because Azerbaijan has become the only country that, in the context of the global economic crisis, considered that the financial costs of organizing and holding the Games will fade in comparison with reputational dividends. However, today no other country in Europe is ready to host the following European Games: Holland, which was mentioned earlier, refused, citing the high cost of the event. Unfortunately, Azerbaijan itself, having spent colossal funds, gained practically nothing in political terms: the majority of European leaders ignored this event. Therefore, the answer is simple: whoever is willing to pay calls the tune. In this case, games.
Why not Europe? Azerbaijan is not only geographically Europe, but also culturally, there is a lot of Europe there, especially now.
In general, it is difficult to say where Europe ends, because these are more cultural boundaries than geographic, then we can say that Russia is not Europe.