European Casino Association’s Yield Sec report finds illegal online gambling costs the EU €20 billion in annual tax revenue

Illegal online gambling dominated the EU market in 2024, costing member states an estimated €20 billion (US$23.03 billion) in lost tax revenue, according to new report from the European Casino Association (ECA) and intelligence firm Yield Sec.

According to the findings, unlicensed gambling operators now control 71% of the EU’s online market, generating an estimated €80.6 billion (US$92.82 billion) in gross gaming revenue—more than double that of the legal sector, which stands at €33.6 billion (US$38.69 billion). The report identifies more than 6,200 illegal operators actively targeting EU consumers, with 81 million Europeans exposed to or engaging with these illicit services.

At an average effective tax rate of 25% on online gambling across the EU, these illegal operations diverted revenue that could have been used to support industrial innovation, workforce development, and other strategic economic priorities.

ECA Chairman Erwin van Lambaart said the findings confirm a “serious economic and societal threat,” warning that illegal operators steal revenue from citizens, legitimate businesses, and public services.

“Every euro lost to criminal operators is a euro stolen from European citizens, from legitimate and licenced businesses, and from our communities,” he said. “As ECA, we remain committed to working with European and national authorities to protect consumers, tackle such criminal activities, uphold our industry’s integrity, and ensure that the benefits of a well-regulated industry are not undermined by illegal operators.”

The report also showed how unlicensed operators exploit online advertising channels, including those governed by the Digital Services Act, to reach vulnerable audiences such as minors and self-excluded players. It also documents cases in which illegal platforms impersonate legitimate casinos by copying branding and logos, misleading users while bypassing consumer protection rules, responsible gaming safeguards, and tax obligations.

Yield Sec Founder and CEO Ismail Vali also emphasized the importance of understanding the full scope of the online gambling ecosystem. “For regulators and governments alike, having a comprehensive view of the entire marketplace, both legal and illegal, is essential to design and deliver efficient, targeted policies and interventions.”