Illegal online gambling operators captured 71% of Europe’s online betting and casino market in 2024, generating €80.65 billion in gross gaming revenue, according to new research commissioned by the European Casino Association and conducted by Yield Sec.
The study reveals that illegal gross gaming revenue jumped 53% compared to 2023, while licensed operators generated only €33.6 billion, representing just 29% of the market. The findings indicate that unregulated platforms are expanding faster than regulatory frameworks can adapt.
Market Dominance and Regional Impact
Yield Sec researchers compiled data using AI and human teams to monitor online traffic across both legal and illegal betting websites. The methodology included meta-level and anonymous surveillance of streaming, betting, and gambling activity, with analysis based on users’ dwell time, activity, and interaction with gambling websites and their payment systems.
The research identified more than 6,200 active illegal online gaming operators targeting EU audiences. Analysis shows that 92% of all gambling-related content viewed by EU consumers in 2024 was associated with unlicensed operators, translating to 81 million Europeans engaging with illegal gambling services throughout the year.
Regional analysis reveals significant variations across Europe. Eastern Europe shows the highest concentration, with 82% of its €35.5 billion online gambling revenue coming from illegal sources. Western Europe follows closely, where unregulated operators captured 72% of the region’s €44.3 billion market. Southern and Northern Europe reported lower but still dominant shares of 58% and 55%, respectively.
Financial Impact on Public Services
The dominance of illegal gambling operations has resulted in substantial tax revenue losses. European governments faced an estimated €20 billion shortfall in tax revenue in 2024 due to unlicensed operations. The data shows illegal operators earned €2.40 for every €1 generated by licensed operators.
“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 licensed businesses, and from our communities,” said Erwin van Lambaart, chairman of the European Casino Association.
Van Lambaart added that the ECA remains committed to working with European and national authorities to protect consumers, tackle criminal activities, uphold industry integrity, and ensure the benefits of a well-regulated industry are not undermined by illegal operators.
Growth Drivers and Marketing Tactics
The legal online gambling market in the EU reached approximately €33.6 billion in 2024, representing a 30% gain from the prior year. However, unregulated gambling’s more than 50% year-over-year growth was driven by multiple factors beyond regulatory constraints on licensed operators.
Major sporting events in 2024, including the European Championships and the Olympic Games, created opportunities for unlicensed operators. Many offered bonuses far exceeding legal limits and some streamed events illegally to attract bettors.
The study highlights the emergence of new unregulated gambling formats, including prediction markets, peer-to-peer wagering exchanges, crypto-based gaming platforms, and social sweepstakes. These platforms employed marketing methods that combined illegal live broadcasts with promotional strategies often offering bonuses that surpassed what licensed companies could legally provide.
Illegal operators used tactics including fabricated positive reviews and incorporated national flags and bank logos to create false trust among potential customers. Social media platforms such as TikTok, Twitch, and Instagram became key distribution channels. Some operators deployed deepfake technology to create fake celebrity endorsements.
Without compliance requirements, these illegal sites offered rapid registration processes that bypassed ID checks and adjustable features that licensed operators cannot legally match.
Industry Response
Ismail Vali, founder and CEO of Yield Sec, emphasized the importance of comprehensive market visibility.
“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,” Vali stated.
The UK gambling industry has expressed concern about proposed tax increases. Grainne Hurst, CEO of the Betting and Gaming Council, told City AM that the research “underlines the very real threat posed by the growing, unsafe gambling black market.”
“These illegal operators don’t have any [consumer] protections or standards … and don’t return a penny to the Treasury,” Hurst said.
Hurst is urging UK Exchequer Chancellor Rachel Reeves to reconsider her proposal to increase the UK’s tax on online gambling revenue from 15% to 21%, arguing that higher taxation will drive more players to the black market.
The report concludes that illegal operators are expanding faster than European regulation can adapt, with their reach strengthening, their technology becoming more sophisticated, and their presence increasingly difficult to avoid. For policymakers and operators, the challenge is how to bring players back to the regulated market and rebuild a safe, transparent gambling environment.
Source: European Casino Association
