Illegal Online Gambling Costs the EU €20 Billion Annually

Illegal Market Dominance

The study indicates that unlicensed operators now account for 71% of the EU online gambling market, generating an estimated €80.6 billion in gross gaming revenue. This amount more than doubles the size of the regulated online sector, which stands at €33.6 billion. The findings also reveal that more than 6,200 illegal gambling operators actively target consumers across EU Member States, exposing 81 million Europeans to unlawful gambling services.

Yield Sec’s analysis estimates that, based on a notional EU-wide online gaming tax rate of 25%, more than €20 billion in tax revenue was diverted from European economies in 2024. According to the study, this loss represents funds that could have supported economic competitiveness, the skilling of the workforce, and investment in research and innovation.

ECA Reaction

Erwin van Lambaart, Chairman of the European Casino Association, stated:

“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 report outlines several tactics used by illegal platforms to reach EU consumers. According to Yield Sec, unlicensed operators make use of online advertising channels that fall within the scope of the Digital Services Act. These methods allow them to target vulnerable groups, including minors and individuals who have self-excluded from gambling.

The study adds that illegal services often impersonate licensed casinos by using their logos and branding to mislead users. Because they operate without safeguards or responsible gaming rules, these platforms promote fake bonuses, allow unlimited betting, and offer anonymous transactions.

Policy Implications

The Yield Sec report characterizes illegal gambling not as a grey area but as the systematic theft of revenue and an abuse of regulatory frameworks and consumer protections. It calls for action from EU policymakers to strengthen market oversight, ensure fair competition, and safeguard citizens.

Ismail Vali, Founder and CEO of Yield Sec, commented:

“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.”