Europe’s Illegal Online Gambling Market Triples To €12 Billion

Europe’s illegal online gambling market generated an estimated €12 billion in net revenue during 2025, having tripled in size since 2019, according to new research commissioned by European gambling trade association Euromat.

The study, conducted by Helios and Regulus Partners, estimates that unregulated operators now account for approximately 25% of the European online gambling market. Researchers analysed 28 markets and carried out around 1,000 hours of analysis covering digital marketing, web traffic and the impact of regulatory and political developments.

Research Links Regulation To Black Market Growth

The study covered the 27 EU member states excluding Malta and Luxembourg, alongside the UK, Serbia and Montenegro. Researchers examined factors influencing the movement of consumers between regulated and unregulated gambling platforms.

Filip Jelavić, owner and project lead at Helios, argued that government policy can contribute to black market growth by creating additional barriers for customers using licensed operators.

“It’s clear that online gambling black markets don’t happen by accident but instead are the result of government policies that create consumer friction,” Jelavić said.

“In such an environment the key drivers are a combination of limited choice based on regulation and state monopolies, low visibility, distortions of price or value, as well as interventionist measures such as affordability checks - which block or inconvenience established consumer behaviour.”

The findings represent the researchers' assessment of the factors driving illegal gambling rather than establishing that individual regulatory measures directly cause consumers to migrate to unlicensed operators.

Cryptocurrency Identified As Key Black Market Factor

Helios also identified cryptocurrency and affiliate marketing as significant components of the illegal gambling ecosystem, with researchers finding that some of the largest unregulated operators are established and recognisable brands rather than small or temporary websites.

“The traffic analysis that we’ve undertaken shows that the rapid growth of crypto currencies has been key to building many of these businesses in terms of product differentiation and regulatory workarounds,” Jelavić said.

He argued that relatively few European regulated gambling markets have established frameworks allowing consumers to gamble legally using cryptocurrency, potentially creating demand that is instead served by offshore operators.

Affiliate marketing was identified as another challenge, particularly among the large number of smaller illegal gambling websites. According to the study, affiliate networks can provide unlicensed operators with a cost-effective customer acquisition channel that can be difficult for authorities to disrupt.

Euromat To Use Findings In Policy Discussions

Euromat President Jason Frost said the organisation intends to use the research in its engagement with policymakers and law enforcement agencies, while highlighting concerns over links between illegal gambling and organised crime.

“We uphold the importance of supporting healthy and sensibly regulated markets in which businesses contribute to the economy, provide rewarding career and job opportunities, support local supply chains and are socially responsible,” Frost said.

The findings come alongside separate research from Fincord Intelligence, recently highlighted by the Betting and Gaming Council, which estimated that the global illegal online gambling market generated approximately $50 billion in gross revenue during 2025.

That research also highlighted the use of cryptocurrency, affiliates, social media and messaging platforms by illegal operators, including websites specifically targeting UK consumers who have self-excluded through GamStop.