European Illegal Gambling Market Hits €12 Billion

The European illegal online gambling market has expanded considerably over the past three years and has now reached an estimated value of €12 billion, according to a report commissioned by the European Gaming and Amusement Federation (Euromat).

Prepared by Regulus Partners and Helios, the research examined 28 online gambling markets across Europe, including the UK. The findings indicate that unregulated gambling accounts for around 25% of all online gambling activity across the region.

Black Market Gains Ground Across Europe

The report highlights the growing presence of major companies operating in the illegal gambling sector, noting that some have established recognisable brands and captured substantial shares of the market.

Researchers also examined the potential impact of affordability checks and other regulatory measures on the licensed gambling sector. While acknowledging the importance of protecting players, the study warns that overly restrictive controls could encourage some customers to seek gambling through less regulated channels.

According to the research, unregulated operators currently account for approximately one-quarter of Europe’s online gambling market. It also found that prominent black-market operators have built identifiable brands and gained significant market shares.

The researchers warned that these operators could further strengthen their market position if governments continue introducing tighter restrictions on licensed gambling.

Filip Jelavić, Project Lead at Helios, commented:

“Consumer protection policies are key but become counter-productive if they succeed in driving players into the black-market. The more engaged and higher value customers who seek black markets out are often the most vulnerable to harm or exploitation.”

Jason Frost, President at Euromat, commented:

“The illegal black market is a major concern for everybody who recognises the importance of a progressive and fairly regulated leisure and entertainment economy. Organised Crime Groups treat illegal gambling as a ‘cash cow’ with the profits providing ready-to-use liquidity to reinvest into high-risk, high-reward criminal enterprises such as drug trafficking, human trafficking, and firearms smuggling.”

The study emphasises the challenge of balancing consumer protection with market accessibility, suggesting that regulations creating excessive barriers for customers could unintentionally contribute to further growth in Europe’s illegal online gambling market.