The European illegal online gambling market has experienced significant growth over the last three years, now reaching €12 billion, as outlined in a recent report by the European Gaming and Amusement Federation (Euromat). Conducted by Regulus Partners and Helios, the research investigated 28 online gambling markets, including the UK, revealing that illegal online gambling now accounts for approximately 25% of all online gambling activities across Europe.
The findings indicate that well-known companies operating in the illegal gambling sector maintain large market shares and have established recognizable brands. The report discusses the potential need for implementing affordability checks and additional regulatory measures within the legally operating gambling industry. While acknowledging the importance of player safety, the researchers caution that stringent regulations could inadvertently incentivize certain players to turn to less regulated options.
The unregulated sector currently makes up around 25% of the overall European online gambling landscape, with major black-market operators securing substantial positions amid increasing restrictions on regulated gambling. Filip Jelavić, Project Lead at Helios, highlighted that although consumer protection measures are vital, they could backfire by pushing players toward unregulated markets. He noted that high-value customers who seek out these black markets may be particularly vulnerable to harm or exploitation.
Jason Frost, President of Euromat, expressed concern over the illegal black market's impact on the leisure and entertainment economy, stating that organized crime groups view illegal gambling as a lucrative source of revenue. These illicit profits often fund more serious criminal activities, such as drug trafficking and smuggling.
The study emphasizes the need for a balance between consumer protection and access to the market. It warns that regulations imposing excessive barriers could inadvertently foster the growth of the illegal online casino industry.
