The European Casino Association (ECA) has reported that illegal online gambling targeting players within the EU is projected to reach €91.6 billion by 2025. This surge has resulted in a staggering loss of €22.9 billion in tax revenue for Member States. The findings were discussed during a significant roundtable at the European Parliament, convened by MEP Lukas Mandl. The ECA's annual report, prepared by Gambling Compliance International (GCI), indicates a 14% increase in illegal online gambling activities compared to the previous year.
The ECA highlighted that illegal operators dominate the online gambling landscape across the EU-27 countries, with at least 6,200 illicit companies currently in operation. Additionally, European players are increasingly exposed to advertisements promoting illegal casinos, overshadowing licensed gaming establishments.
According to EU member state legislation, gambling companies are required to obtain a license to operate in each EU country; any operation without such a license is deemed illegal. Licensed entities are obligated to comply with anti-money laundering regulations, responsible gaming guidelines, and know-your-customer requirements. In stark contrast, illegal gambling businesses evade these responsibilities.
ECA Chair Erwin van Lambaart criticized the situation, stating:
"Licensed casinos and their online businesses operate under strict rules and invest heavily in responsible gambling and anti-money laundering measures. Yet illegal operators, often based outside the EU, can reach European consumers at the click of a button, without safeguards, without oversight, and without contributing to our communities. This is why we need strong political will and strengthened public-private cooperation that is aligned with this reality. If we fail to act now, the illegal online market will continue to grow at the expense of players, public finances, and legitimate businesses."
MEP Lukas Mandl echoed these concerns, emphasizing the broader implications of illegal online gambling:
"Illegal online gambling is not a niche issue; it is a serious cross-border threat that touches on consumer protection, organized crime, and the integrity of our internal market. Europol is a crucial partner for Member States, but we must ensure that its mandate and resources allow it to fully support the fight against these illegitimate activities. I will bring these insights into our parliamentary work and encourage colleagues cross-party to jointly combat the negative effects of illegal gambling, from mental health issues to existential disasters faced by individuals and entire families, so that we can better protect citizens and distinguish between criminal activities and those operators who play by the rules."
