The Scope of the Issue
Europe’s illegal gambling market remains a significant challenge for regulators and licensed operators, with estimates revealing its alarming scale. In a 2024 report, the UK Betting and Gaming Council (BGC) highlighted that unlicensed operators in the UK handle approximately £2.7 billion annually, constituting about 2.1% of the total stakes placed with licensed platforms. Despite high channelisation rates in mature markets, illegal gambling persists and continues to evolve.
Challenges in Enforcement
Efforts to curb illegal gambling face significant hurdles. Authorities, including the UK Gambling Commission (UKGC), have made strides in analysing consumer activity and market trends, but tracking the illegal sector accurately remains problematic. Collecting reliable data from illicit platforms is akin to estimating the size of the black economy—an inherently complex and imprecise task.
The proliferation of crypto-powered betting platforms and the use of advanced tactics by unlicensed operators further complicate enforcement. Mirror websites and anonymous payment systems undermine conventional measures like IP and payment blocking, as evidenced by ongoing challenges in markets such as Germany, the Netherlands, and Brazil.
Key Insights from Stakeholders
In Sweden, differing methodologies for estimating channelisation rates have sparked debates about their accuracy. Estimates range from 70% to 86%, depending on the source. Gustaf Hoffstedt, secretary general of Sweden’s gambling trade body BOS, stresses the importance of using multiple assessments to achieve a clearer picture of market trends.
Brazil’s recent crackdown highlights the potential of financial measures, such as blocking payments through government-controlled systems like Pix, to disrupt illegal operations. However, experts caution that enforcement alone cannot solve the issue. Draconian regulations often push players toward unlicensed platforms, making it essential to maintain the appeal of the regulated market.
A Collaborative Approach
Stakeholders across the industry, including operators, regulators, and third-party suppliers, must work together to address this issue. The UKGC has emphasised the importance of due diligence in supplier partnerships, urging operators to ensure compliance throughout their networks. Collaborative efforts with other sectors, such as digital media and internet services, are also vital in creating a more robust enforcement ecosystem.
Looking Ahead
Despite the challenges, there is optimism about progress in regulating the market. Constructive dialogue between regulators, industry representatives, and policymakers will be crucial in developing strategies that address the evolving nature of illegal gambling while safeguarding the regulated sector’s integrity.
