Europe wants to cut off illegal operators

The European online gambling market is experiencing an explosion in illegal supply. Public authorities are now looking for a new strategy: no longer going after sites one by one, but attacking the ecosystem that enables them to exist. 

A flourishing market out of control

For years, Europe’s online gambling industry has grown faster than the legal frameworks capable of overseeing it. Between 2000 and 2015, many states allowed a cross-border model to take hold: operators licensed in one jurisdiction could offer their services elsewhere, in countries that were still poorly regulated.  This system enabled the rise of groups like Betsson, which built their international presence by targeting markets lacking structured local regulation. 

But what some described as a digital golden age was soon perceived differently by governments. Billions of euros were flowing unchecked by tax authorities. The budget issue, even more than consumer protection, served as a political electroshock. As a result, several countries switched to strict national licensing regimes, imposing local licenses and taxation on gross gaming revenue. 

This trend accelerated in the late 2010s. In Sweden, for example, a reform obliged any operator targeting national players to obtain a local license and pay specific taxes. Similar developments took place in Denmark, Poland, the Netherlands and Germany.

However, this desire for regulation has often been accompanied by an approach deemed outdated by experts, still influenced by the perception of physical casinos in the 1990s, associated with opacity and scandal.

When tax pressure pushes gamblers elsewhere

In several European countries, the authorities have stepped up restrictions: higher taxes, advertising restrictions, deposit limits, even a ban on sports sponsorship. In the Netherlands, taxes on gambling will exceed 34% by 2025, and are set to rise even further.

These measures, designed to provide a framework for the sector, have sometimes had the opposite effect: illegal platforms, not subject to these obligations, offer more aggressive deals, higher bonuses and fewer restrictions. The competitive gap widens. And the player often follows the most attractive offer. In Germany, some experts estimate that there are 11 illegal casinos for every legal one.

Numbers that make you dizzy

The scale of the phenomenon has now been documented. In 2024, illegal operators would have generated 80.6 billion euros in online revenues in the European Union, compared with 33.6 billion for licensed players. In other words, almost 71% of online gambling revenues in the EU come from the black market. 

The consequences are manifold:

• States would have lost around 20 billion euros in tax revenue. For every euro generated in the regulated sector, 2.40 euros would be captured by offshore operators. 
• Even more striking, 92% of visible online gambling content is linked to entities without a local license, exposing some 81 million Europeans to these services. 
• Eastern Europe is particularly hard hit, with up to 82% of online revenues derived from illegal offerings. Even the most regulated regions exceed half the market. 

The decisive role of technology and social networks

The expansion of the parallel market is based not only on legal loopholes, but also on a highly efficient digital mechanism.

The major sporting events of 2024, such as the European Football Championship and the Olympic Games, have served as catalysts. These periods become moments of massive acquisition for illegal platforms, thanks to aggressive marketing campaigns and attractive bonuses. 

Streaming and social networks play a key role. Influencers broadcast online casino sessions, sometimes with fictitious balances, giving a distorted image of real risk. On social networks, the promotion of a luxurious lifestyle, combined with techniques such as celebrity deepfakes, helps to create an illusion of legitimacy.

Players are redirected to platforms with no protection mechanisms: no spending limits, no self-exclusion, little recourse in the event of a dispute or blocked withdrawal.

The new European doctrine

For a long time, the authorities tried to block illegal sites by blacklisting them. This method was deemed ineffective: all that was needed was to change one letter in a domain name and the site would reappear elsewhere. Faced with this failure, a new approach is emerging: strike not at the sites themselves, but at the infrastructures that make them possible.

In November 2025, several European authorities announced that they would be stepping up their cooperation to combat illegal online gambling. The battlefield is now shifting to three key players:

• Payment providers, who enable financial transactions.
• Technology giants, such as Google and Meta, who distribute advertising and visibility.
• Public authorities, charged with coordinating truly binding means of action. 

The objective is clear: dry up financial flows and digital promotion.

Without cooperation between governments, technology platforms and financial institutions, any action will remain piecemeal. Industry experts stress that none of these components can act alone.

The challenge is twofold. The challenge is to protect consumers and public finances, while maintaining a sufficiently attractive framework for legal operators to remain competitive. The real battle is no longer being waged in courts or parliaments, but in algorithms, advertising networks and payment systems.