The UK Gambling Commission (UKGC) has joined a number of European regulators in an initiative to strengthen measures against illegal online gambling.
Regulators from Austria, France, Germany, Italy, Portugal, Spain and the United Kingdom issued a joint statement outlining the threat posed by the illegal market and their plans to combat it.
“Illegal online gambling undermines the entire regulatory framework designed to protect the public interest,” read the UKGC statement.
“Its borderless nature and the speed of technological innovation make it easier for illegal operators to evade regulatory oversight. This creates significant risks for consumer and public health protection, endangers public order and harms the activity of legitimate operators.”
The regulators committed to sharing information about illegal operators, as well as experience and best practices for identifying, investigating and sanctioning companies operating outside the law.
The initiative follows data published in a Yield Sec study commissioned by the European Casino Association (ECA). The study estimates that the EU black market is more than twice the size of the legal sector, amounting to €80.6bn in gross gaming revenue annually. As a result, the 27 EU member states may be losing more than €20bn in tax revenues each year.
“Illegal online gambling is not a marginal issue; it is an economic and societal threat. Every euro lost to criminal operators is a euro stolen from European citizens, from legitimate and licensed businesses, and from our communities,” said Erwin van Lambaart, Chair of the ECA, on the findings.
A recent UKGC study also examined in detail player engagement with the black market and found that the vast majority of such users are men aged 18 to 24. Moreover, it revealed that black-market users tend to be active gamblers and usually score 8 or higher on the PGSI scale.
According to the UKGC, they most often use the black market to bet on football or play online slots. Key reasons include better odds, exclusive games, alternative payment methods (such as cryptocurrency), no stake limits, and low identification requirements.
However, only a few respondents were able to name specific illegal operators – many mistakenly cited licensed brands. Nonetheless, almost all said that having a UK licence is important. As a result, the UKGC concluded that there is a “disconnect between the perceived importance of a licence, understanding whether an operator is licensed, and knowing how to verify it,” which makes vulnerable players easy targets for the black market.
The group of regulators also agreed on the need to demand that digital platforms and social networks strengthen their control over advertising from illegal operators. This call comes amid a scandal surrounding Meta after a Reuters investigation reported that 10% of the tech giant’s 2024 annual revenue – around $16bn – came from ads for scams and prohibited products, including online casinos.
“We express our common concern regarding the increasing proliferation of advertising targeting our jurisdictions by unauthorised operators, particularly through digital channels such as social media, video platforms, and affiliate networks,” added the UKGC.
“These activities not only violate our national laws but also expose citizens – including minors and vulnerable individuals – to significant risks associated with illegal gambling.”
Illegal operators also have a major advantage in marketing because they are not bound by ambassador-related restrictions. In recent months, for example, Bonnie Blue and Andrew Tate have both signed deals with crypto casinos.
Flutter has highlighted this imbalance, stating that the black market “floods the internet and social media without any checks,” while legal operators must comply with strict advertising rules.
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