Illegal Online Gambling Dominates EU Market, New Report Warns

A recent report, funded by the European Casino Association (ECA) and prepared by Yield Sec, highlights the rapid expansion of unlicensed online betting in Europe during 2024, posing significant risks to both the economy and public welfare.

According to the findings, unregulated platforms now control 71% of the EU's digital gambling sector, generating approximately €80.6 billion in gross gaming revenue—more than twice the €33.6 billion from authorized operations. Researchers pinpointed more than 6,200 such unauthorized sites actively soliciting players across the continent, affecting an estimated 81 million EU residents through exposure or direct engagement.

The study also quantifies the fiscal fallout: assuming a standard 25% tax on online gaming throughout the EU, these illicit activities siphoned off over €20 billion in potential government income last year. This shortfall deprives public budgets of resources vital for enhancing industrial efficiency, workforce development, and technological advancements.

Erwin van Lambaart, chair of the ECA, emphasized the gravity of the situation: "This data reinforces long-standing concerns from the ECA—unlicensed online betting isn't a minor concern; it's a direct challenge to our economic stability and social well-being. Each euro funneled to these shadowy networks represents a loss to everyday Europeans, ethical operators, and local societies at large. We're dedicated to partnering with EU and national bodies to shield players, combat these illicit practices, preserve our sector's standards, and prevent unregulated entities from eroding the advantages of a properly overseen industry."

The document offers an unprecedented deep dive into the EU's online betting landscape, covering operations in all 27 member countries and contrasting regulated versus unregulated elements in every market.

It exposes tactics used by non-compliant sites, such as infiltrating digital ad networks—even those regulated under the Digital Services Act—to target at-risk groups, including self-banned individuals and minors. These operators often mimic legitimate venues by borrowing their branding and visuals, which confuses users and tarnishes the image of compliant firms.

Devoid of any oversight, licensing requirements, or accountability measures, these sites entice users with deceptive promotions, unlimited wager caps, and untraceable transaction methods. The analysis frames this as organized revenue diversion and a flagrant disregard for protective frameworks, urging EU leaders to implement strong countermeasures that prioritize user safety, promote equitable market conditions, and fortify the region's financial and communal structures.

Ismail Vali, founder and chief executive of Yield Sec, noted the report's innovative methodology: "What sets our evaluation of the digital gaming environment apart is its transparent and methodical framework, capturing the full spectrum of user interactions and behaviors to reveal the authentic dynamics of online betting. In every region, regulated and unregulated elements coexist. For policymakers and officials, gaining a holistic perspective on the complete ecosystem—both sides included—is crucial for crafting precise strategies and responses that truly work."