Unregulated online casinos continue to expand and can threaten the stability of licensed casino markets across Europe. This was found and reported in a recently published report by the European Casino Association.
The research was conducted by intelligence firm Yield Sec and explores the degree of criminal activity across the European digital gambling market. It also dives into the profound economic, consumer, and regulatory consequences that accompany unlawful gambling.
Illegal Operators Dominate the Market
Based on data from 2024, illegal iGaming operators generated approximately €80.6 billion in gross gaming revenue. This represents around 71% of the total online gambling market across the continent.
On the other hand, legal operators accounted for just €33.6 billion. In total, the online market reached €114.3 billion, which means the legal sector is now outpaced more than two-to-one by illegal gaming operations.
However, the situation is going even further south. For example, the number of illegal operators that actively target EU consumers has spiked from 4,921 in 2023 to 6,220 in 2024. This is a worrying 26% increase. These entities often use complex webs of mirror sites, redirects, and cross-border hosting to avoid detection and evade federal authorities.
“Illegal online gambling refers to any gambling service that is not authorised, licensed, or regulated under the laws of a jurisdiction, but which targets, is accessible to, and conducts transactions with consumers in that jurisdiction,” reminds the report.
EU Governments Miss Out on Over €20 billion in Revenue
The economic cost to member states is quite comprehensive. Yield Sec’s latest estimates suggest that €20.2 billion in taxes should have been paid by gambling operators, but were not collected in 2024. In comparison, governments received only €8.4 billion in tax from licensed online operators.
Yield Sec notes that the disparity suggests a direct financial loss and a long-term harm to public services, consumer protection programs, and regulated gambling businesses.
Consumers are Overexposed to Illegal Content
One of the report’s most troubling findings is that 92% of all gambling-related content seen by Europeans online promotes illegal gambling services. This audience exposure measure stretches across all major online touchpoints, including search engines, social media, streaming platforms, messaging apps, affiliate websites, advertisements, and even AI-driven content discovery.
Yield Sec describes this level of saturation as an “early warning indicator.” The firm suggests that without intervention, illegal operators will continue to capture market share simply by being overwhelmingly more visible than their regulated casinos.
Millions of Europeans Play Solely on Unregulated Sites
In 2024, 118 million Europeans interacted with online gambling, and 81 million engaged with illegal or unregulated platforms. Minors and other vulnerable groups, like people who have self-excluded from gambling, are particularly exposed. Illegal platforms frequently lack even basic safeguards such as age verification and responsible gambling tools.
The report describes many of these sites as unsafe and unregulated, and notes that they often operate in unison with other criminal industries, such as illicit streaming, crypto-based money laundering, and fraudulent advertising schemes.
Legal Operators Struggle to Compete
Yield Sec outlines a substantial imbalance between legal and illegal operators. Unlawful casinos often offer unrestricted products, aggressive bonus incentives, and tax-free pricing. They also stream sports and other copyrighted content without proper authorisation. Thus, they combine betting options with live broadcasts.
In comparison, legal casinos must comply with strict national regulations. These often include advertising limits, deposit caps, and responsible gambling measures, while also paying licensing fees and taxes to the respective regulator.
The report also argues that the legal industry is fighting an impossible battle since regulations developed to protect consumers are exploited by criminal competitors who face no comparable constraints.
Regulatory Systems Can’t Keep Crime Out
Yield Sec further warns that many EU regulatory models are overly focused on regulating the legal sector without properly addressing the criminal parallel market. The report highlights that effective gambling regulation requires:
- Identifying illegal operators
- Blocking their access to the local market
- Preventing re-entry through ongoing monitoring
Without these steps, policies like advertising restrictions or stricter product rules risk further weakening licensed companies while illegal networks continue to expand, emphasised the report.
ECA Seeks Coordinated European Action
The European Casino Association, which commissioned the issuance of the report, believes the findings could prompt a unified response from EU institutions, regulators, and national governments.
In its statement, the association has also cautioned that illegal gambling is taking away billions from public budgets, undermining legitimate businesses, and placing millions of consumers at risk.
In addition to that, the report underscores that meaningful progress will require closer cooperation between regulators, technology platforms, and law-enforcement agencies across the continent.
It also notes that without modern monitoring tools and coordinated cross-border enforcement, illegal operators will continue to expand unhindered, further plaguing consumer safety, which can destabilise Europe’s regulated gambling ecosystem.
