Italian illegal market reaches €20bn despite advertising ban

Italian illegal market reaches €20bn despite advertising ban

Illegal Gambling Italy, Data Room Nexus Observatory, Decreto Dignità Italy
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Italy’s illegal online gambling market has grown to an estimated €20bn, despite the country operating one of Europe’s strictest gambling advertising regimes.

A new report by Data Room Nexus Observatory says that more than 4.5m Italians accessed unauthorised gambling platforms during Q1 of 2026. The research recorded more than 13m sessions across illegal websites and apps, although the true scale of the market may be larger because much activity takes place through private messaging channels and frequently changing domains.

The report said that around 78% of users accessing illegal gambling platforms were male, while almost half were under the age of 35. The largest user group was aged between 25 and 34, with activity peaking between midday and midnight.

More than 90% of traffic to illegal platforms now comes through smartphones. Researchers identified Instagram, Telegram, WhatsApp and YouTube as key acquisition channels, with operators using referral links, push notifications and cloned content designed to imitate licensed gambling brands.

The findings point to a regulatory paradox in one of Europe’s largest gambling markets. Italy banned gambling advertising linked to cash winnings under the 2018 Decreto Dignità, extending restrictions to sponsorships and social media promotion. These controls have not eliminated illegal promotion but pushed unlicensed operators towards less visible digital channels.

Isabella Rusciano, General Director of Data Room Nexus, says: “When illegal content circulates on platforms perceived as trustworthy, it becomes increasingly difficult for ordinary users to distinguish between what is authorised and what is not.”

Italian authorities blocked more than 1,000 illegal gambling websites in 2025, but the report says that replacement mirror sites often reappear within hours or days, using similar infrastructure, payment systems and customer databases. This pattern has become a familiar challenge for European regulators. Domain blocking can disrupt illegal operators, but it is rarely decisive when platforms can replicate sites quickly, shift traffic through messaging apps and use social media to rebuild customer acquisition funnels.

Filippo Pucci, Scientific Director of Data Room Nexus, adds: “The issue of responsible gambling becomes even more sensitive when discussing unregulated markets. The complete absence of controls significantly increases users’ exposure to risk.”

For Italy, the report raises questions about the effectiveness of advertising restrictions when licensed operators face tighter limits than illegal competitors. If regulated brands cannot communicate clearly with adult customers, while unlicensed platforms continue to operate through social channels, encrypted messaging and mirror sites, the policy risk is that legal visibility declines while illegal reach grows.

In 2025, Italy moved to reduce the number of online gambling websites from 407 to 52 under a revised licensing framework, ending the widespread use of secondary ‘skin’ sites and consolidating oversight around a smaller number of licensees. Authorities have also been developing a cyber shield system to block access to unlicensed domains on public internet devices.

For licensed operators, the Data Room Nexus findings underline the scale of the imbalance. Illegal platforms can offer more aggressive promotions, faster onboarding, fewer checks and less visible payment structures, while regulated operators remain bound by advertising, tax, licensing and responsible gambling requirements. The wider lesson is not that advertising controls have no role, it is that advertising bans alone cannot control illegal gambling if enforcement, payment disruption, platform cooperation and consumer education do not keep pace.