Illegal Online Gambling Operators Account For 71% of EU Market
A new study has found that 71% of the European Union’s online gambling market is illegal, potentially costing tens of billions of euros in lost tax revenue.
The European Casino Association (ECA) commissioned the major new piece of research which was carried out by a global intelligence platform, Yield Sec.
It found that there are now more than 6,200 illegal gambling operators that are currently actively targeting EU consumers online.
According to the study, this means that over 80 million Europeans are being exposed to – or may be interacting with – illegal gambling services.
The study found that the illegal online gambling sector could be worth an estimated €80.6 billion in gross gaming revenue.
This works out at more than double the legal market’s position of €33.6 billion and suggests that as much as €20 billion of EU tax money could be lost on an annual basis as a result.
Economic And Societal Threat
ECA chairman Erwin van Lambaart said in a statement released by the organisation on November 20 that the findings of the study back up its warnings over an extended period.
He said:
These findings confirm what the ECA has warned about for years: illegal online gambling is not a marginal issue; it is an economic and societal threat.
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 Yield Sec report covers all 27 EU Member States, going into detail to assess both the legal and illegal sectors in each marketplace.
It is believed to be the most comprehensive assessment and analysis that has ever been conducted on the European online gambling ecosystem.
Illegal online gambling has been described as an economic and societal threat
How Illegal Operators Lure Players
According to the Yield Sec report, illegal operators often spoof legitimate businesses by taking inspiration from their logos and website designs in order to attract customers to sign up.
They also use methods such as offering larger bonuses such as welcome offers to new users.
The Yield Sec study commissioned by the ECA found that illegal online gambling sites – which have not secured the relevant licenses to operate legally – run without safeguards, while they do not meet their tax obligations or have responsible gaming rules in place to protect players.
Within the report, EU policymakers are urged to take decisive action to protect consumers.
Clear And Rigorous Methodology
The founder and chief executive of Yield Sec, Ismail Vali, gave an insight into how the study was carried out by the organisation.
He said:
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.
Yield Sec previously released research that found illegal bookmakers now control nine per cent of the UK market, with some 531 black market sports betting and casino operators identified.
In the UK, illegal operators have seen their share of the market more than triple since 2022.
