Study Links Strict Regulations to Faster Growth of Illegal Online Gambling

The size of Europe’s illegal online gambling market reached around €12 billion in 2025, roughly tripling compared with 2019. The figures come from a study commissioned by Euromat, the European association representing the land-based gaming and entertainment sector.

The study was prepared by Regulus Partners and Helios. Researchers analyzed gambling website traffic, digital marketing activity, as well as economic and regulatory conditions across different countries.

According to the findings, the illegal segment already accounts for around 25% of Europe’s entire online gambling market, and its size could reach €13 billion in 2026.

The study covered 28 markets: European Union countries except Malta and Luxembourg, as well as the United Kingdom, Serbia and Montenegro. Unlicensed operators were found to be present in all markets analyzed, with the illegal segment accounting for up to 80% of the market in some jurisdictions.

The authors note that the illegal segment is growing fastest in countries with the strictest regulations.

They cite several contributing factors:

• state monopolies;
• restrictions on certain types of gambling;
• high tax burdens;
• advertising bans;
• checks on players’ financial affordability.

Researchers believe that overly strict player protection measures may have the opposite effect: instead of stopping gambling activity, they can push some users toward illegal operators.

France was identified as the largest illegal market among the countries studied. The authors attribute this to the size of its economy and population combined with existing restrictions.

The researchers also examined how the illegal market is structured. Around 64% of traffic is generated by just 25 leading operators. Many of them actively use cryptocurrencies, while smaller websites attract players through affiliate platforms.

Euromat’s interest in the issue is linked to the fact that the illegal market takes away part of the revenue from licensed operators, including land-based gambling venues.