Illegal Online Gambling Sites Dominate European iGaming Landscape

Illegal operators are believed to control about 71% of all online gaming revenue in the EU, with their business expanding 53% year-on-year. Such rapid growth is attributed to lockdown-era shifts in player behaviour, lax cross-border regulation, and a surge in novel offerings like prediction-markets, crypto-based gaming and peer-to-peer wagering. 

Legal online gaming, by contrast, grew 30% in the same period, yet remains structurally smaller and more constrained by regulation, advertising restrictions and higher tax burdens. Stakeholders warn that as long as the black market offers fewer restrictions and higher odds, it may continue to outpace regulated operators.

Looking ahead, the gap between legal and illegal channels poses serious concerns for consumer protection, tax revenue and market integrity. Some experts argue that without harmonised EU-wide measures, streamlined cross-border licensing and aggressive enforcement against offshore sites, the regulated market risks being permanently out-matched.