New Report from Yield Sec Reveals the Extent of Illegal Gambling Across Europe

The latest report from Yield Sec has revealed the extent of illegal gambling across Europe, showing that unlicensed operators dominate the EU market. According to the EU 27 Europe: Online Gambling Marketplace 2024 study, unregulated firms captured 71% of gross gaming yield (GGY) across the 27 EU member states, generating €80.6 billion out of an estimated €114.3 billion market.

In contrast, licensed operators — regulated and subject to tax and compliance obligations — accounted for just €33.6 billion, representing 29% of the market.

The report warns that the rapid growth of illegal platforms is creating a crisis for Europe’s regulated gambling industry, government revenues and consumer safety. In 2024, 92% of all gambling-related content viewed by EU consumers originated from unlicensed operators. This visibility led to widespread engagement, with 81 million Europeans — 18% of the population — interacting with illegal gambling services during the year.

The financial impact is severe. Yield Sec estimates that EU governments lost €20 billion in tax revenue in 2024 as illegal operators outpaced their regulated counterparts. For every €1 earned by a licensed operator, unlicensed competitors made €2.40, creating what the report calls a “Jenga tower” imbalance — where tighter rules on regulated firms strengthen their illegal rivals.

The surge in black-market gambling coincided with high-profile sporting events like the European Championships and the Olympic Games, which provided opportunities for illicit platforms to thrive. These operators used aggressive marketing tactics, including bonuses far exceeding legal limits, paired with unauthorised live broadcasts to attract bettors.

Unregulated companies also exploited cryptocurrency gambling, prediction markets and social media platforms such as TikTok, Twitch and Instagram. Some employed fake reviews, national flags, bank logos and even deepfake technology to create fake celebrity endorsements, further deceiving consumers.

Yield Sec calls for coordinated efforts between governments, regulators, and industry stakeholders to detect and dismantle illegal networks, implement strict monitoring, and enforce penalties.