Europe’s illegal gambling market: What’s the solution?
The article “Europe’s illegal gambling market: What’s the solution?” published on January 14, 2025, by iGaming Business, examines the persistent challenges European regulators face in combating illegal online gambling. Despite ongoing enforcement efforts, the black market continues to thrive, often due to stringent regulations in the legal market that inadvertently drive players toward unlicensed operators. For instance, in Germany, a 2023 report from the University of Leipzig estimated that only 50.7% of online gamblers used legal operators, with approximately 75% of online gambling revenue generated by the black market.
The concept of channelisation—steering consumers toward legal gambling options—is highlighted as a critical strategy. Countries like Denmark have achieved high channelisation rates of around 90% since liberalizing their markets in 2012. In contrast, markets with restrictive regulations, such as France, where online casino gaming remains illegal, see higher black market activity. A study by PwC estimated that France’s illegal gambling market could be worth up to €1.5 billion annually, accounting for more than 10% of total wagers.
The article suggests that to effectively combat illegal gambling, regulators should focus on creating attractive legal markets with reasonable regulations and taxes, thereby encouraging players to choose licensed options over illegal ones. This approach aims to balance consumer protection with the realities of market demand, reducing the appeal of unlicensed operators.
