Illegal online gambling is diverting more than €20bn a year from European public finances, according to a new industry-backed study that warns unlicensed operators now dominate the EU’s digital gambling market.
Research commissioned by the European Casino Association and conducted by Yield Sec estimates that illegal operators accounted for 71% of the EU’s online gambling market in 2024. These platforms generated approximately €80.6bn in GGR, more than double the €33.6bn recorded by licensed operators.
The study identifies more than 6,200 illegal gambling sites actively targeting EU consumers, exposing or engaging an estimated 81m Europeans. Applying an assumed EU-wide online gambling tax rate of 25%, Yield Sec calculates that more than €20bn in potential tax receipts was lost in 2024 alone.
The report argues that the scale of lost revenue has broader economic implications, limiting governments’ ability to fund industrial competitiveness, workforce development and research and innovation initiatives.
Erwin van Lambaart, Chair of the European Casino Association (pictured), says the findings confirm long-standing industry concerns: “Illegal online gambling is not a marginal issue it is an economic and societal threat.” He added that revenue lost to criminal operators directly undermines consumers, licensed businesses and public finances across the bloc.
Exploiting regulatory gaps
Covering all 27 EU member states, the Yield Sec analysis is described as the most comprehensive assessment yet of Europe’s online gambling ecosystem. It highlights how illegal operators exploit digital advertising channels, including platforms governed by the Digital Services Act, to reach vulnerable consumers such as minors and self-excluded players.
Unlicensed platforms impersonate legitimate casinos, copying logos and branding to mislead users and erode trust in regulated markets. Free from responsible gambling obligations, player protection measures and tax liabilities, these sites lure customers with inflated bonuses, unlimited betting and anonymous payment options.
Yield Sec stresses that this activity should not be viewed as a “grey market”, but rather as systematic regulatory abuse requiring coordinated enforcement and policy action at EU level.
Ismail Vali, Founder & CEO of Yield Sec, calls on regulators to adopt a full-market perspective, saying: “Understanding the entire online gambling marketplace is essential for designing targeted and effective regulatory interventions.”
The report adds fresh urgency to calls from licensed operators for tougher enforcement, improved digital oversight and closer cooperation between regulators and technology platforms to curb the rapid expansion of illegal online gambling across Europe.
