EU Faces €22.9 Billion Tax Gap From Unlicensed Gambling

Unlicensed online gambling generated an estimated €91.6 billion from EU consumers during 2025, according to research commissioned by the European Casino Association.

Good to Know

• The ECA estimates EU countries missed €22.9 billion in gambling tax.
• More than 6,200 operators allegedly served markets without local licences.
• Unlicensed does not automatically mean players receive a worse service or suffer harm.

Licence Gaps Drive EU Enforcement Debate

The ECA presented the figures during a European Parliament roundtable hosted by MEP Lukas Mandl. Participants included the European Commission, Europol oversight representatives, Eurojust, AMLA and national gambling regulators.

Gambling Compliance International produced the study for the ECA. It estimated that unlicensed online gambling revenue rose by about 14% from 2024 and now represents most online gambling revenue across the EU-27.

The ECA labels operators as illegal whenever they accept players in a country without the licence required there. For editorial accuracy, unlicensed describes their regulatory position more precisely. A company may hold licences elsewhere but lack approval in the country being targeted.

Lack of a local licence also does not prove that every player receives weaker protection, unfair games or poor withdrawals. Offshore operators still possess gambling licenses and apply apply identity checks, responsible gambling tools and security controls. However, local regulators may have limited power to investigate complaints, recover funds or enforce national rules. And maybe not less important, miss tax income from these operators, and isn’t that what maybe it is always about?

ECA chair Erwin van Lambaart said:

“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.”

Licensed operators usually pay domestic tax and follow national advertising, AML and player protection rules. Unlicensed platforms may avoid those local duties, even when another jurisdiction regulates their wider business.

Mandl said:

“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.”

The discussion followed a European Commission proposal to strengthen Europol and Eurojust cooperation against serious cross-border crime. The plan would increase operational, analytical and information-sharing powers, but the European Parliament and Council must approve it before it takes effect.

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