TLDR
- Offshore gambling operators earned 80.6 billion euros in 2024, compared to just 33.6 billion euros by licensed companies across the EU
- European governments lost an estimated 20 billion euros in tax revenue to illegal gambling platforms
- Domain blocking has proven ineffective as illegal operators quickly launch replacement websites
- Countries like Romania and the Netherlands are raising taxes on legal operators, widening the gap with unregulated competitors
- Seven European nations signed a joint agreement in November 2025 to target payment providers and tech platforms instead of chasing domains
Offshore gambling platforms now control 71% of all online gambling revenue across the European Union, according to a new report from Yield Sec.
The report found that illegal operators generated 80.6 billion euros during 2024. Licensed companies, by comparison, earned just 33.6 billion euros over the same period.
That gap means European governments missed out on roughly 20 billion euros in potential tax revenue last year.
The numbers paint a clear picture of how lopsided the market has become. For every euro a regulated operator earns, offshore platforms take home 2.40 euros.
Domain Blocking Fails to Stop Illegal Operators
Regulators have long relied on domain blocking as their primary tool against illegal gambling websites. The approach has not worked.
Illegal operators launch new web addresses almost immediately after their old ones are blocked. Government blacklists become outdated within days.
The European online gambling market originally grew through cross-border activity. Many countries previously allowed companies to operate using foreign licenses before domestic licensing regimes were established.
Denmark, Poland, the Netherlands, and Germany adopted Sweden’s regulatory model after it launched in 2019. But the growth of offshore platforms has outpaced these efforts.
Rather than curbing illegal activity, some new regulations have made things harder for licensed operators. Romania raised its gross gaming income tax to 30% in 2025 and set stricter advertising rules.
The Netherlands plans to increase its tax rate from 34.2% to 37.8% in 2026. Dutch regulators have also imposed deposit limits and a total ban on sports sponsorships.
Offshore operators ignore all of these restrictions. They offer bigger bonuses and better odds, pulling customers away from legal platforms.
Illegal Platforms Reach Millions Through Social Media
The problem spans the entire continent. In Eastern Europe, illegal operators control 82% of online gambling revenue. In Northern Europe, they hold more than 55%.
Unlicensed platforms dominate digital marketing in the gambling space. The report found that 92% of all gambling-related online content promotes unlicensed services.
That marketing reaches roughly 81 million European citizens. Illegal operators use streaming platforms like Kick, Meta’s social media networks, affiliate networks, and luxury lifestyle videos to attract users.
Some have even turned to deepfake endorsements to deceive potential customers.
These platforms offer none of the consumer protections required of licensed operators. There are no spending limits, no self-exclusion tools, and no dispute resolution mechanisms.
European authorities are now changing their approach. In November 2025, officials from Austria, France, Germany, the United Kingdom, Italy, Portugal, and Spain signed a joint agreement.
The seven nations committed to pooling resources and targeting the core infrastructure behind illegal operations.
Instead of blocking domains, regulators plan to go after payment providers and major technology platforms. Industry analysts say authorities need to control financial flows, block online distribution channels, and increase enforcement capacity.
The joint agreement from November 2025 represents the first coordinated effort by multiple European governments to pressure the financial and technology networks that support offshore gambling operations.
