Key Moments:
- Unlicensed gambling sites captured €80.65 billion in revenue in 2024, representing 71% of Europe’s online market
- Governments across the EU faced an estimated €20 billion loss in tax revenue from illegal gambling activities in 2024
- Advanced marketing techniques enabled illegal operators to outpace licensed companies and dominate consumer engagement
Illegal Gambling Surges, Leaving Licensed Operators Behind
A new report commissioned by the European Casino Association and released by Yield Sec highlights a dramatic shift in Europe’s online gambling market in 2024. Illegal operators accounted for €80.65 billion ($93.8 billion) in gross gaming revenue—71% of the total market—marking a 53% increase compared to 2023. In contrast, regulated entities generated only €33.6 billion, amounting to just 29% of the overall market share. This surge took place as authorities encountered difficulties reins in crypto casinos, prediction markets, and unauthorized sportsbooks.
Illegal gambling operators captured 71% of Europe’s online betting and casino market last year, worth around €80.65 billion https://t.co/Jq553YO4ou
— Bloomberg (@business) August 26, 2025
Prevalence of Unlicensed Content and Regional Disparities
According to the study, unlicensed operators dominated the digital landscape, with 92% of gambling-related content available to EU consumers in 2024 traced to illegal providers. This massive reach resulted in 81 million Europeans—approximately 18% of the population—participating in activities offered by unregulated platforms during the year.
| Region | Illegal Share | Total Market Size (€) |
|---|---|---|
| Eastern Europe | 82% | €35.5 billion |
| Western Europe | 72% | €44.3 billion |
| Southern Europe | 58% | Not specified |
| Northern Europe | 55% | Not specified |
Eastern Europe experienced the highest proportion of unregulated activity, with 82% of its €35.5 billion market linked to illegal sites. Western Europe followed with illegal channels securing 72% of its €44.3 billion market. Southern and Northern Europe posted rates of 58% and 55% respectively, maintaining an unlicensed majority.
Impact on Tax Revenues and Market Balance
The dominance of illegal operators led to significant fiscal consequences. Across the European Union, an estimated €20 billion in tax income did not reach government coffers due to the expansion of unlicensed gambling. The earning imbalance was stark: illegal companies made €2.40 for every €1 that licensed operators received.
A year filled with major sporting events, such as the European Championships and the Olympic Games, contributed to a fertile environment for unlicensed operators. Simultaneously, the growing appeal of cryptocurrency gambling and prediction markets, particularly among younger demographics, intensified the trend toward unregulated platforms.
Unregulated Operators Leverage Aggressive Marketing
The report points to sophisticated and inventive marketing strategies as a key factor behind the illegal sector’s growth. These platforms utilized unauthorized live event streams and bonus offers that far exceeded what licensed companies were allowed to offer.
Tactics also included disseminating fake positive reviews, deploying national icons like flags and bank logos to instill misplaced trust, and utilizing social media channels such as TikTok, Twitch, and Instagram for outreach. Some even exploited deepfake technology for phony celebrity endorsements and removed typical compliance hurdles by offering fast, ID-free sign-ups and flexible deposit limits.
Regulatory Efforts Fall Short Against Expanding Black Market
The gap between regulated and illegal gambling entities has widened as governments implement more restrictions—ranging from stiffer advertising rules to stricter deposit caps and limitations on cross-selling. However, these measures have inadvertently strengthened the competitive edge of illegal operators, further destabilizing the regulated sector.
This imbalance results in increased risks for governments, legitimate businesses, and consumers alike, as the bulk of available gambling content in the EU is funneled through platforms lacking regulatory oversight. The result is heightened vulnerability to fraud, problem gambling, and inadequate player protections.
Collaboration Needed to Curb Illegal Gambling
Yield Sec’s study concludes that regulating licensed companies alone will not be sufficient to address Europe’s illegal gambling problem. The firm emphasizes the need for governments, regulators, and industry players to work together to dismantle criminal networks and employ effective monitoring tools. Without robust enforcement, regulated operations will likely continue to lose ground and EU government tax revenues will remain under threat.
- Author
Daniel Williams
