Illegal Online Gambling in the EU Climbed to €91.6bn in 2025, Costing Member States €22.9bn in Lost Tax Revenue

The illegal online gambling market targeting consumers across the European Union expanded to an estimated €91.6 billion in 2025, representing an increase of approximately 14% compared with the previous year, according to figures unveiled during a European Parliament roundtable held on 6 July.

The findings, presented by the European Casino Association (ECA), indicate that EU member states collectively missed out on around €22.9 billion in tax revenue as gamblers increasingly placed bets through unlicensed operators.

The latest figures come from the ECA’s annual study, which was carried out by Gambling Compliance International (GCI). The updated estimate surpassed the figures referenced in the event’s original agenda, which had been prepared around an earlier 2024 estimate of €80 billion. That figure was the most recent data available when the parliamentary session was organised, but the new research was officially released during the event itself.

According to the study, illegal operators now generate the majority of online gambling revenue across the EU-27. GCI estimates that more than 6,200 unlicensed gambling operators are actively targeting European consumers, while most gambling-related online content encountered by users across Europe promotes illegal operators rather than licensed businesses.

The findings also reposition illegal gambling as not only a consumer protection issue but also a significant challenge for public finances. Licensed gambling operators, including casinos and their online platforms, are required to comply with national taxation systems, anti-money laundering regulations and responsible gambling obligations. In contrast, operators based outside the European Union are able to access the same customer base without adhering to these regulatory requirements or contributing tax revenue to member states.

Commenting on the report, ECA Chair Erwin van Lambaart warned that the latest data clearly illustrates the growing scale of the problem.

“The 2025 data from the GCI report leaves no room for doubt: illegal online gambling is a fast-growing, cross-border problem that puts players, especially young adults, at high risk, deprives societies of much-needed tax revenues, and undermines trust in the regulated market,” he said.

Van Lambaart also highlighted the disparity between licensed and unlicensed operators.

“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.”

He argued that tackling the issue would require stronger political commitment alongside greater cooperation between public authorities and the private sector.

Specifically, he identified the European Commission, Europol, and the Anti-Money Laundering Authority (AMLA) as organisations capable of strengthening links between national enforcement agencies and financial intelligence units.

Van Lambaart concluded with a warning about the consequences of inaction.

“If we fail to act now, the illegal online market will continue to grow at the expense of players, public finances and legitimate businesses,” he said.

The European Parliament roundtable was hosted by Member of the European Parliament Lukas Mandl and brought together representatives from across the European Union, including lawmakers, officials from the European Commission, AMLA, Eurojust, the Joint Parliamentary Scrutiny Group on Europol, national gambling regulators and industry specialists. Discussions focused on the scale of illegal online gambling and potential policy responses under the Chatham House Rule, allowing participants to discuss issues openly while preventing comments from being attributed to specific individuals.

According to the ECA, the timing of the discussion was particularly significant as the European Commission is currently considering reforms to Europol’s mandate. Mandl argued that illegal online gambling should be viewed as a major challenge affecting the European Union as a whole rather than as an isolated issue.

“Illegal online gambling is not a niche issue, it is a serious cross-border threat that touches on consumer protection, organised crime and the integrity of our internal market,” Mandl said.

He also stressed the importance of strengthening Europol’s role in supporting national authorities.

“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.”

The latest EU-wide estimates mirror developments already observed in several national markets. Earlier this year, research commissioned by the UK's Betting and Gaming Council concluded that illegal operators were responsible for almost half of all gambling advertising expenditure in the United Kingdom and warned that they could account for the majority of such advertising within the next two years. Separately, research conducted by Entain exposed an illegal gambling network operating across UK social media platforms.

Beyond Europe, GCI's broader analysis estimates that the global unregulated online gambling market reached $5.9 trillion in 2025, underlining the international scale of the challenge.

The issue of lost tax revenue has also become increasingly relevant as European policymakers consider fiscal measures affecting the gambling sector, including proposals for an EU-wide iGaming tax framework that have recently gained momentum in Brussels.

Mandl confirmed that he intends to incorporate the ECA's findings into ongoing parliamentary discussions while encouraging lawmakers from across the political spectrum to support stronger action. With the review of Europol's mandate currently underway and GCI's estimates continuing to rise, attention is now turning to whether European institutions can translate the latest evidence into coordinated cross-border enforcement measures capable of slowing the continued expansion of the illegal online gambling market.

By fLEXI tEAM