Europe's Illicit Online Casinos Now Worth €12 Billion
A new study on Europe's illegal online gambling market has revealed that it has tripled in size since 2019, reaching €12 billion in net revenue and accounting for a quarter of the total European online gambling sector. The study found that this growth is not despite regulation, but because of specific regulatory choices.
The Euromat Black Market Study, which analyzed over 1,000 hours of forensic digital-marketing and web-traffic data from 28 European markets, identified several structural drivers behind the growth of Europe's illegal online gambling market. The study's lead researcher, Filip Jelavić of Helios, attributed the growth to government policies that create consumer friction.
Specifically, the study pointed to state monopolies limiting player choice, low visibility for licensed alternatives, pricing and value distortions, and interventionist measures such as affordability checks. The study also highlighted how regulation can inadvertently drive demand towards unlicensed sites by not accommodating crypto payments, which are typically fast, borderless, and outside traditional banking channels.
Offshore operators have become increasingly sophisticated, with some becoming genuine recognized brands with real marketing budgets and large player communities. This makes it difficult for governments to keep pace with blocking new domains or payment rails.