The European illegal online gambling market has surged to €12 billion, as revealed in a report by the European Gaming and Amusement Federation (Euromat). This research, conducted by Regulus Partners and Helios, analyzed 28 online gambling markets, including the UK, highlighting that illegal gambling now comprises about 25% of all online betting activities in Europe.
The findings shed light on how large illegal gambling companies have cultivated significant market presence, establishing recognizable brands that the public identifies. Furthermore, the report emphasizes the need for implementing affordability checks and regulatory measures in the licensed gambling sector. However, it warns that overly stringent regulations might push players towards less regulated options.
Currently, unregulated gambling is estimated to account for around 25% of the overall European online gambling industry. Major players in this black market have developed strong brand identities and captured considerable market shares, potentially reinforcing their positions if governments impose stricter rules on regulated gambling.
Filip Jelavić, Project Lead at Helios, emphasized the importance of consumer protection policies, stating, "These policies become counter-productive if they drive players into the black market. The more engaged and higher-value customers seeking out black markets are often the most vulnerable to harm or exploitation."
Jason Frost, President at Euromat, expressed concern about the illegal black market, stressing its threat to a well-regulated leisure and entertainment sector. He noted that organized crime groups exploit illegal gambling as a substantial revenue source, converting profits into liquidity for high-risk criminal activities, such as drug trafficking and human smuggling.
The study emphasizes the delicate balance between consumer protection and market access, arguing that regulatory measures that erect too many barriers could unintentionally fuel the growth of the illegal online gambling sector.
