EU Money Grab Elite Fears Tax Loss as Unlicensed Gambling Takes 71 Percent of the Market

A new report shows unlicensed gambling now commands most of the EU online market, creating a massive hit to tax income—an area the European Union is famous for protecting with intensity. Policymakers often focus public messaging on addiction prevention, yet the data points to something else driving real concern: the billions in tax revenue slipping away as players choose platforms outside national licensing systems.

(Editor’s Note: Unlicensed gambling does not automatically mean unsafe or criminal. Many unlicensed sites treat their customers well, offer stronger bonuses, faster payments, and better support than some licensed operators. The status reflects regulatory registration, not service quality.)

Good to Know

• Unlicensed operators generated an estimated €80.6 billion in 2024
• EU governments missed about €20 billion in taxes
• More than 6,200 unlicensed operators targeted EU customers

Report Shows Unlicensed Gambling Dominating the EU Online Market

The joint analysis from the European Casino Association and Yield Sec reveals that 71 percent of EU online gambling activity now flows through unlicensed platforms. These operators earned around €80.6 billion in gross gaming revenue during 2024—more than double the €33.6 billion collected by licensed platforms.

Researchers identified over 6,200 unlicensed gambling operators that reached or targeted EU customers. Roughly 81 million people engaged with or were exposed to these services, which operate outside national oversight and outside the EU tax system.

At an average effective tax rate of 25 percent on regulated online gambling, the EU lost €20 billion in tax revenue—funds that normally sit at the center of EU economic planning, industrial strategy, and public funding. That missing revenue forms the primary concern for regulators, even if official messaging often emphasizes responsible gaming.

ECA Chairman Erwin van Lambaart addressed the scale of the issue:

“Every euro lost to criminal operators is a euro stolen from European citizens, from legitimate and licenced businesses, and from our communities.  As ECA, we remain committed to working with European and national authorities to protect consumers, tackle such criminal activities, uphold our industry’s integrity, and ensure that the benefits of a well-regulated industry are not undermined by illegal operators.”

(Editor’s note: The report uses “criminal operators” as a broad category, yet many unlicensed websites operate professionally and responsibly. Unlicensed simply means they are not approved under a specific national regulatory framework.)

Advertising Loopholes and Impersonation Tactics Add Pressure on Regulators

Researchers say unlicensed platforms take advantage of digital advertising networks, including some covered by the Digital Services Act. These channels can push gambling promotions to minors and self-excluded users, groups that national regulators try to shield.

The study also documented cases where unlicensed sites copied branding from licensed casinos. These mimic tactics aim to borrow trust and bypass consumer protection rules and tax obligations.

Yield Sec Founder and CEO Ismail Vali said understanding the entire online marketplace is necessary for effective policy:

“For regulators and governments alike, having a comprehensive view of the entire marketplace, both legal and illegal, is essential to design and deliver efficient, targeted policies and interventions.”

The broader picture shows a fast-growing digital environment where players often choose unlicensed platforms for better bonuses, easier onboarding and more flexible customer service—factors rarely addressed in political discussions but well known among everyday users.

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