Key Highlights
Contents
- Unlicensed gambling platforms generated €80.6 billion throughout 2024, while authorized operators across the EU collected merely €33.6 billion
- Tax authorities in European countries forfeited approximately €20 billion in revenue due to black market gambling operations
- Website blocking strategies have failed as unlicensed operators rapidly deploy alternative domains
- Nations including Romania and the Netherlands are increasing taxation on authorized platforms, creating larger disparities with offshore competitors
- In November 2025, seven European countries established a collaborative framework to focus on payment processors and technology companies rather than domain enforcement
Unlicensed gambling operations now command 71% of total online gambling revenues throughout the European Union, based on recent findings from Yield Sec.
The analysis revealed that unauthorized platforms collected €80.6 billion throughout 2024. Meanwhile, properly licensed operations earned only €33.6 billion during the identical timeframe.
This disparity resulted in European tax authorities losing approximately €20 billion in potential revenue over the past year.
The data demonstrates just how unbalanced the marketplace has become. For each euro collected by a regulated platform, offshore operations capture €2.40.
Website Blocking Proves Ineffective Against Unlicensed Platforms
Regulatory bodies have traditionally depended on domain blocking as their main weapon against unauthorized gambling operations. This strategy has proven unsuccessful.
Unlicensed platforms deploy replacement web addresses almost instantly after previous ones get blocked. Official blacklists become obsolete within mere days.
Europe’s online gambling sector initially expanded through international operations. Numerous countries previously permitted operators to function under foreign licensing frameworks before implementing domestic regulatory systems.
Denmark, Poland, the Netherlands, and Germany implemented regulatory frameworks similar to Sweden’s model following its 2019 introduction. However, the expansion of offshore operations has surpassed these regulatory initiatives.
Instead of reducing unauthorized activity, certain new regulations have created additional challenges for licensed platforms. Romania elevated its gross gaming income levy to 30% in 2025 while implementing more stringent promotional guidelines.
The Netherlands intends to raise its levy from 34.2% to 37.8% in 2026. Dutch authorities have additionally enforced deposit caps and completely prohibited sports sponsorship arrangements.
Offshore platforms disregard these limitations entirely. They provide enhanced promotional offers and superior odds, drawing customers away from legitimate operations.
Unlicensed Operations Attract Millions via Digital Channels
The challenge affects the entire region. Throughout Eastern Europe, unauthorized operators command 82% of online gambling income. In Northern Europe, their share exceeds 55%.
Unlicensed operations dominate digital promotional activities within the gambling sector. The analysis determined that 92% of gambling-related digital content advertises unlicensed platforms.
These marketing campaigns reach approximately 81 million European residents. Unauthorized operators leverage streaming services like Kick, Meta’s social platforms, affiliate marketing networks, and premium lifestyle content to draw users.
Some operations have even deployed deepfake celebrity endorsements to mislead prospective customers.
These platforms provide none of the safeguards mandated for licensed operators. There are no expenditure caps, no self-exclusion options, and no dispute resolution systems.
European regulators are now shifting their strategy. In November 2025, representatives from Austria, France, Germany, the United Kingdom, Italy, Portugal, and Spain executed a collaborative agreement.
The seven countries pledged to combine resources and focus on the fundamental infrastructure supporting unlicensed operations.
Rather than blocking web addresses, authorities intend to target payment processing companies and prominent technology platforms. Industry experts indicate regulators must control monetary transactions, restrict digital distribution networks, and expand enforcement capabilities.
The collaborative framework established in November 2025 marks the initial unified attempt by several European administrations to apply pressure on the financial and technological ecosystems enabling offshore gambling platforms.
