Euromat Study Reveals €12 Billion Illegal Gambling Market Driven by Over-Regulation in Europe

Europe’s illegal online gambling market has reached an estimated €12 billion. In an interview with Yogonet International, Euromat President Jason Frost warns that excessive regulation is making licensed operators uncompetitive and directing players to platforms that lack basic safeguards.

Overly regulated jurisdictions impose high taxation, advertising bans, and measures such as affordability checks. These steps add friction to the player journey and reduce tax yields from the regulated sector. The Euromat study released last month shows the scale of a problem that, if unchecked, could allow the unlicensed market to eclipse its licensed counterpart.

Market Drivers and National Variations

The COVID-19 shutdowns demonstrated that players migrate when legal options are restricted. Illegal sites, free of licensing costs, respond with higher RTP and larger bonuses. France has recorded the sharpest growth in illegal activity, followed closely by Germany, where regulatory controls triggered numerous land-based closures. In the Netherlands, excessive taxation has similarly forced closures of legitimate businesses.

KSA Chairman Michel Groothuizen has gone on record as saying: “Financially driven measures such as a gambling tax are contrary to the policy objective of providing players with more protection.” Cryptocurrency has compounded the issue by supplying anonymity that governments have been unable or unwilling to counter. Enforcement agencies face persistent challenges in blocking illegal operators, while regulators continue to layer additional requirements onto the licensed sector.

The Regulatory Reckoning Ahead

Frost expects continued expansion of the illegal market over the next three to five years, with consequent losses in player protection, tax revenue, and community-based businesses. Euromat is sharing its findings with Interpol, national governments, regulators, and the European Union. The required response is a sensible regulatory framework that upholds social responsibility without destroying commercial viability. Without coordinated action across enforcement, payments, advertising rules, and cross-border efforts, licensed operators will face further erosion.

Reporting: Yogonet International

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