A recent industry estimate indicates that illegal online gambling cost EU governments nearly €23 billion in tax revenue last year. This figure has reignited long-standing concerns regarding the scale of Europe’s offshore gambling market and the ability of regulators to effectively curb it.
An impact study commissioned by the European Casino Association (ECA) and conducted by Gambling Compliance International (GCI) estimates that the illegal online gambling market targeting EU consumers reached €91.6 billion in 2025—an increase of approximately 14% from the previous year—a figure significantly higher than other industry data. Based on this number, the ECA estimates tax losses at €22.9 billion and notes that over 6,200 illegal operators are conducting business with European consumers.
“The 2025 data in the GCI report unequivocally demonstrates that illegal online gambling is a rapidly growing cross-border issue, exposing players—particularly young adults—to heightened risks, while depriving society of much-needed tax revenue and undermining trust in the regulated market,” said ECA Chairman Erwin van Lambaart.
However, this tax figure should be viewed as an estimate rather than an actual tally of unpaid taxes. A previous study commissioned by the ECA from Yield Sec utilized a hypothetical tax rate of 25% on Gross Gaming Revenue (GGR) across the EU. Applying this same rate to the €91.6 billion figure results in an estimated tax loss of €22.9 billion.
Different Estimates, Shared Concerns
The size of the black market remains a subject of debate. In March of this year, the European Gaming and Betting Association (EGBA) stated that illegal operators accounted for approximately 27% of Europe’s online gambling GGR—amounting to roughly €18 billion. This figure is far lower than the ECA/GCI estimate.
Germany offers another case study. A study commissioned by the German regulator GGL and conducted by the Blockchain Research Lab found that illegal gambling accounted for 22.97% of the German online gambling market, implying a channelization rate of 77.03% for legal channels. “The channelization rate derived from scientific calculations confirms our previous assessment of the black market’s scale,” said Ronald Benter, a board member of the GGL, in a statement translated from German.
The situation in the Netherlands illustrates that this issue cannot be reduced to a simple percentage. In the second half of 2025, the Dutch Gaming Authority (Kansspelautoriteit) estimated that while approximately 91% of Dutch gamblers used only licensed operators, licensed companies accounted for just 53% of Gross Gaming Revenue (GGR). Regulators suspect that actual player losses on illegal sites may be significantly higher, given the weak—or entirely nonexistent—protective measures offered by such platforms.
Combating the Illegal Market Behind the Websites
There is no shortage of proposed solutions. Measures range from calls to regulate online casino gaming to Finland’s decision to end its online gambling and betting monopoly in favor of a licensing system. Other strategies include blocking illegal sites and mirror sites, restricting financial transaction flows, removing illegal operators from search engines and app stores, tightening advertising regulations, strengthening cooperation with social media platforms, and providing regulators with more resources to pursue offshore operators. Some industry associations also argue that channelization rates should be factored in when imposing new restrictions or taxes on licensed companies, warning that an overly stringent legal market could make illegal alternatives more attractive.
In 2025, Danish courts ordered the blocking of 334 illegal gambling websites. The country’s regulator also established a procedural agreement with the telecommunications industry to accelerate the blocking of mirror sites and collaborated with Google to report illegal gambling apps.
France presents a different side of the debate. Online casino gaming remains illegal there, yet the industry association AFJEL advocates for its inclusion in the regulated market, arguing that regulation would offer better protection for players who currently use illegal sites. Both the French National Gaming Authority (ANJ) and the French government remain cautious, citing the addictive nature of online casino games and the potential risks to public health. Meanwhile, regulators are expanding the scope of their crackdown to target the entire infrastructure supporting illegal gambling—including payment service providers, technology vendors, hosting companies, social networks, and search engines—while continuing to implement website blocking measures.
The European Gaming and Betting Association (EGBA) is advocating for action at the EU level, particularly against fraudulent websites and apps that impersonate licensed brands. Ekaterina Hartmann, EGBA’s Director of Legal and Regulatory Affairs, stated: “Fragmented national measures are insufficient to tackle this type of fraud. We need coordinated action at the EU level to ensure that consumers and legitimate operators do not have to face this arduous battle against fraud alone.”
Industry associations also argue that enforcement efforts will struggle to succeed if licensed products become difficult to distinguish or fail to appeal to players. The Belgian Association of Gaming Operators (BAGO) has called for a stepped-up crackdown on illegal operators, the implementation of financial blockades, and increased resources for regulators. “Combating illegal gambling must be an absolute priority,” said BAGO Chairman Tom De Clercq. “The Gaming Commission itself has indicated that traditional enforcement methods are reaching their limits. We therefore need to rapidly block illegal websites and payment flows while strengthening cooperation between regulators, the police, and the judiciary.”
This is precisely where the ECA’s estimate of a €91.6 billion illegal market and the EGBA’s estimate of €18 billion in gross gaming revenue (GGR) from illegal online gambling offer the most valuable insights. Despite significant differences in scope and methodology, both figures point to a policy issue that extends far beyond mere tax revenue losses. Unlicensed operators can advertise across borders, accept payments, and reach players who are excluded from legal gambling or are vulnerable, whereas licensed operators must comply with national regulations and consumer protection requirements.