A new study commissioned by Euromat finds Europe’s illegal online gambling market has tripled since 2019, now accounting for a quarter of the sector and raising questions about the impact of government policy and crypto use
Europe’s illegal online gambling market has ballooned to an estimated €12 billion in net revenue for 2025, with unlicensed operators now controlling a quarter of the continent’s digital gambling sector. This dramatic expansion, revealed in research commissioned by Euromat and conducted by Helios and Regulus Partners, puts government policy and regulatory strategy under direct scrutiny.
Crypto and Regulation Drive Black Market Growth
According to the study, the rapid rise of cryptocurrencies has enabled unlicensed gambling sites to bypass traditional regulatory barriers and payment controls. Filip Jelavić of Helios points to the lack of legal crypto gambling options in most European jurisdictions as a key factor pushing consumers toward unregulated platforms. The research found that major black-market operators are often established brands leveraging crypto payments and affiliate marketing to attract players, making enforcement even more challenging.
Government-imposed restrictions—such as state monopolies, limited product choice, and intrusive affordability checks—are cited as primary catalysts for the black market’s growth. Jelavić argues that these policies create friction for consumers, driving them to seek alternatives outside the regulated system. The study’s analysis covered 28 European online gambling markets, including the UK, Serbia, and Montenegro, but excluding Malta and Luxembourg.
Organized Crime and Enforcement Challenges
Euromat president Jason Frost links the unregulated market directly to organized crime, warning that unchecked growth undermines both consumer protection and legitimate economic activity. Frost says the findings will serve as the foundation for new engagement with policymakers and law enforcement, emphasizing the need for “healthy and sensibly regulated markets” that contribute to the economy and uphold social responsibility.
Enforcement remains a major hurdle. The study highlights how affiliate businesses and digital marketing channels allow illegal operators to recruit players at scale, often evading detection even where laws exist. The lack of effective cross-border enforcement tools means that many black-market sites continue to operate with impunity, especially when leveraging crypto ecosystems that avoid regulatory scrutiny.
Global Perspective and Policy Implications
The European findings echo global trends. The UK’s Betting and Gaming Council recently cited a Fincord Intelligence report estimating the worldwide illegal online gambling market at $50 billion in gross revenue for 2025. The report details how “not on GamStop” casinos and sites with no identity or financial checks target vulnerable customers, including those who have self-excluded. These operators use search engines, social media, and encrypted messaging platforms to reach players, sidestepping the protections of regulated markets.
Grainne Hurst, CEO of the Betting and Gaming Council, calls for coordinated action among government, regulators, payment providers, and technology companies to disrupt the networks supporting illegal gambling. The challenge is not limited to Europe; similar dynamics have been observed in other markets, as highlighted in a reported earlier case involving underage trading on prediction platforms.
With the illegal market now representing a significant share of total online gambling activity, the effectiveness of current regulatory models is under question. The evidence suggests that restrictive policies and slow adaptation to new payment technologies may be fueling the very risks regulators aim to contain. Unless European authorities address the root causes—particularly the demand for crypto-enabled gambling and the friction created by heavy-handed regulation—the black market is likely to remain a persistent and growing threat to both consumers and the legal industry.
Gross gaming revenue (GGR) is a core metric in gambling market analysis, representing the total amount wagered by players minus winnings paid out. Unlike betting handle, which measures total bets placed, GGR reflects the actual revenue retained by operators before expenses and taxes. In regulated markets, GGR is used to calculate tax obligations and assess market health. However, in the context of illegal gambling, GGR figures are often estimates based on web traffic and digital marketing analysis, making precise measurement difficult. Understanding the distinction between handle and GGR is essential for interpreting market size and the impact of regulatory policy.
