A recent Yield Sec study, commissioned by the European Casino Association (ECA), has revealed alarming figures about the dominance of offshore and unlicensed operators in Europe’s iGaming sector.
The findings highlight how the majority of the online gambling market is slipping beyond the control of regulators, creating significant risks for players, national budgets, and the integrity of the industry.
According to the report, offshore operators have established a strong foothold across Europe, often outpacing licensed providers in both reach and revenue. Below are the key insights from the study:
- €114.3 billion — total value of the EU iGaming market in 2024
- €80.6 billion — revenue generated by unlicensed operators in 2024
- €33.6 billion — revenue of licensed and regulated companies in 2024
- €20 billion — annual losses for EU state budgets due to unpaid taxes in 2024
- 92% of all online betting-related content in the EU is linked to unlicensed operators
- 81 million Europeans (18% of the population) engaged with offshore gambling websites in 2024
- 82% — market share of unlicensed operators in Eastern Europe
- 72% — in Western Europe
- 58% — in Southern Europe
- 55% — in Northern Europe
- For every €1 earned by licensed operators, offshore companies generate €2.40, meaning they earn 2.4 times more.
The report also points out the aggressive tactics used by unlicensed platforms. These include heavy spending on online advertising, fake reviews designed to mislead players, and even the use of AI-driven deepfakes featuring celebrities to promote illegal gambling sites.
Experts warn that unless stricter measures are introduced – such as stronger monitoring systems, coordinated EU-wide enforcement, and more effective blocking of illegal websites – the European iGaming market could be further overtaken by offshore operators. This trend not only undermines consumer protection but also deprives governments of billions in tax revenue each year.
