Trade group sounds alarm - 71% of European online gambling is illegal

• A huge part of online gambling in the European Union is taking place offshore – about 71% of the total
• EU Member States lost €20bn in tax revenue because of these practices, according to Yield Sec and ECA estimates
• The industry and lawmakers ought to work to ensure that the regulated market is not undermined by criminal enterprises

The European Casino Association (ECA) has become the latest to commission independent research into the state of illegal online gambling on the continent.

ECA reached out to Yield Sec, an international intelligence firm, which estimates that in 2024, 71% of the online gambling in the European Union specifically took place with unregulated operators, generating €80.6bn in gross gaming revenue.

Online gambling overwhelmingly channeled through illegal operators in the EU

Commenting on these findings, ECA chairman Erwin van Lambaart said: "Every euro lost to criminal operators is a euro stolen from European citizens, from legitimate and licenced businesses, and from our communities. As ECA, we remain committed to working with European and national authorities to protect consumers, tackle such criminal activities, uphold our industry’s integrity, and ensure that the benefits of a well-regulated industry are not undermined by illegal operators."

The losses to national budgets are about €20bn according to the study’s authors, which is another worrying factor. Besides the lost financial opportunity, however, illegal gambling operators are often targeting vulnerable consumers and/or failing to provide a sufficient level of consumer safety.

Matej Novota, Head of Casino Research at Casino Guru, had this to add: "I commend European regulators on moving forward, strengthening cross-border cooperation, and seeking to harmonize and combine their efforts in certain areas, such as flagging unauthorized operators. Lack of regulatory framework harmonization is at least one of the festering issues that needs to be overcome for the licensed market to find teeth and start clawing back share of the unregulated market."

The report specifically focused on how illegal gambling operators target the 27 EU Member States and exploit vulnerabilities in the national legislation, expanding their products locally.

Among the strategies used by these companies is an "impersonation" of existing platforms, misleading the public as to what operators are legitimate and safe, and what are based offshore and ignore responsible gambling rules, tax obligations, and safe play.

A fair estimate of Europe's illegal gambling market

Yield Sec Founder & CEO Ismail Vali was confident that the company’s report has produced a fairly accurate overview of the current state of state in the European Union insofar as illegal gambling is concerned.

"Our approach to assessing the online gaming marketplace is unique because of our clear and rigorous methodology across all of the audience and their activity for measuring the true nature of online gambling: every jurisdiction features both a legal and illegal sector. For regulators and governments alike, having a comprehensive view of the entire marketplace, both legal and illegal, is essential to design and deliver efficient, targeted policies and interventions," Vali said.

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