A new report from Yield Sec, shared with Next.io, has laid bare a troubling reality: illegal and offshore gambling operators continue to dominate Europe’s betting landscape, outpacing the regulated sector by a wide margin.
Despite years of regulatory reform and responsible gambling initiatives across the European Union’s 27 Member States, the report estimates that 71% of all gambling activity—roughly €80.6 billion of the €114.3 billion total market—is still conducted through unlicensed, black-market platforms. That leaves just €33.6 billion flowing through legal, regulated channels.
Regional Breakdown Reveals Stark Disparities
Yield Sec segmented the data into four regions—Northern, Southern, Eastern, and Western Europe—with Eastern Europe showing the highest rate of illegal activity at 82%. Western Europe followed closely at 72%, with countries like France and Germany often cited for overly restrictive regulatory frameworks that may inadvertently push players toward offshore alternatives.
Southern Europe, including Italy, Spain, Greece, Portugal, Malta, and Cyprus, has implemented tighter controls on advertising and licensing. Yet even here, 58% of gambling activity is estimated to occur outside the legal market—challenging the notion that stricter ad policies alone can curb illicit play.
A Market Flooded by Unlicensed Operators
The report also highlights the scale of the issue: approximately 6,200 illegal gambling operators are actively targeting European consumers, and of the estimated 118 million people who gambled in 2024, 81 million did so via unregulated platforms.
Commissioned by the European Casino Association, the study underscores the persistent challenges facing regulators. Despite ongoing efforts to block illegal domains and enforce compliance, offshore operators continue to thrive—raising questions about the effectiveness of current enforcement strategies.
Key Takeaway
Europe’s regulated gambling industry is being outpaced by a sprawling, elusive black market. As the data shows, regulation alone isn’t enough to stem the tide. Without coordinated cross-border enforcement and more agile policy frameworks, the gap between legal and illegal gambling may continue to widen.
