European Market Overwhelmed by Illegally Operating Gambling Operations, Accounting for 71% Share

In the vast and diverse European Union, a significant portion of its gambling market remains entangled in the clutches of offshore and unregulated operators. According to recent reports, approximately 71% of all gambling in the EU is handled by these illicit entities, amounting to a staggering EUR 80.6 billion.

The illegal market's dominance is particularly pronounced in Western Europe, where it accounts for 72% of the gambling handle. This trend is concerning, as approximately 118 million people in Europe participate in gambling activities as of 2024, with around 81 million engaging in an illegal form of gambling.

The European gambling market is a hotbed for illegal activity, with approximately 6,200 operators vying for a piece of the action. Despite strict rules on gambling advertising and licensing, particularly in Southern Europe, regions such as Italy, Spain, Greece, Portugal, Malta, and Cyprus have lost 58% of their market share to these illegal operators.

Countries like Spain, Italy, and France have shown the highest rates of unregulated gambling market activities within the EU in recent years. Conversely, Eastern Europe demonstrates the worst rate, with 82% of the total gambling market operating outside the legal framework.

Markets such as France and Germany are often criticized for their overbearing approach in the gambling market, yet regulation has not been successful in significantly reducing the dominance of the offshore market. The total regulated market in the EU collects about EUR 33.6 billion, but this pales in comparison to the total market for gambling, which is estimated to be EUR 114.3 billion.

The European Casino Association commissioned a survey that clearly demonstrates ongoing problems with the gambling market in Europe. A detailed breakdown of each sub-market, separated into four regions - Northern Europe, Southern Europe, Eastern Europe, and Western Europe - was presented in a report by Yield Sec.

The EU and its 27 Member States find themselves at a disadvantage when comparing the legal versus the illegal gambling market. As efforts continue to address this issue, it is crucial to maintain a balanced approach that ensures consumer protection while fostering a competitive and fair market for all involved.