Unlicensed Casinos Rule EU Gambling Market Leaving Players at Risk

Offshore gambling platforms generate 71% of EU iGaming revenue, surpassing licensed operators. What does this mean for the market and the players?

The battle between licensed and unlicensed gambling platforms has reached a new high, as the latter is now taking over 71% of the market.

Unlicensed and illegal casinos now account for the majority of iGaming revenue in the European Union. Besides the huge market share, offshore platforms have generated over €80 billion in 2024.

Offshore platforms dominance

As figures show, illegal operators generated €80.6 billion back in 2024 in comparison to the mere €33.6 billion generated by licensed companies.

If you put it in perspective, that means for every €1 generated by licensed EU casinos, offshore operators brought in about €2.40. For EU governments, this has led to a massive €20 billion in lost tax revenue while leaving regulated operators struggling.

This imbalance has created a hostile environment for legitimate online casinos, as it undermines compliance and consumer protection.

Why the foreign dominance?

The big question is why regulators are losing the battle. There are a couple of reasons, including ineffective domain blocking. For one, offshore operators can quickly launch new sites when old ones get blacklisted.

The aggressive marketing also doesn't go unnoticed, as about 92% of gambling-related online content promotes unlicensed services. Leading 81 million European citizens to offshore platforms, where they are at serious risk.

There are also various digital tactics used to boost the visibility of foreign operators. These illegal platforms make use of streaming platforms like Kick, social media ads, affiliate networks, and other deepfake endorsements to pull in players.

In Eastern Europe, offshore platforms control 82% of online gambling revenue. In Northern Europe, about 55% of the market is held by illegal operators.

Pressure on licensed operators

Licensed operators are facing immense pressure with higher taxes and stricter rules. In 2025, Romania raised their gross gaming income tax to 30%, and the Netherlands has plans to increase its rates from 34.2% to 37.8% by the end of the year.

Romania and the Netherlands have both imposed severe restrictions on advertising, and both currently have bans on sports sponsorships.

These are just two examples of the direction of most regulatory frameworks. Behind this stands the priority of player protection and clear rules that allow for a clear market and gameplay.

These rules, however, are ignored by offshore operators altogether. Instead, they even go further as to offer larger bonuses and better odds, which increases the competitive gap.

Government's strategy shift

Regulators from Austria, France, Germany, the UK, Italy, Portugal, and Spain all signed a joint agreement in November 2025. The agreement is a collaboration to target payment providers and tech platforms instead of chasing domains.

According to analysts, success for this will depend on blocking online distribution channels, expanding enforcement capacity and controlling the financial flow.

Risks players face

For players, offshore sites often carry a lot of appeal, but that comes hand in hand with many risks. One of the most important is that these platforms lack safeguards designed to protect the players.

This includes play limits, such as deposit or spending limits, self-exclusion, and dispute resolution mechanics.

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With the lack of these safeguards, players are left vulnerable to fraud, gambling addiction, and financial harm. At the same time, governments lose billions in potential tax revenue.

Future outlook

The European online gambling market is projected to grow steadily and reach €50.2 billion in revenue under regulated operations.

However, unless regulators succeed in cutting off offshore operators’ access to payments and digital marketing, the illegal platforms will continue to dominate.

The current reality is that offshore operators are dominating the EU market, and regulators are being put in a position where something needs to be done.

Licensed operators are suffering due to strict regulations and the offshore platform dominance, with no end in sight. Will major regulatory bodies such as the Malta Gaming Authority, the UK Gambling Commission, or the Gibraltar Gaming Authority respond further?

Malta Gaming Authority Learn more

UK Gambling Commission Learn more

Gibraltar Gaming Authority Learn more

Silence is no answer; harsh, strict measures, such as payment blocking, enforcement capacity, and financial flow control, are needed to protect the players and the industry.

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By Deni

Verified Casino Expert

Expertise: Casino Content Writing, Journalism & (PR), Gambling Regulations, Dutch & German Gambling Markets

Hi, I'm Deni! I'm a research obsessive with a passion for gambling regulations, market trends, and casino news. I dig deep into every topic I cover - so every article, review, or guide I write is built on solid research and real detail.

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Last updated: April 15, 2026

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Unlicensed casinos rule EU gambling market leaving players at risk

Offshore platforms dominance

Why the foreign dominance?

Pressure on licensed operators

Government's strategy shift

Risks players face