Illegal Online Gambling Costs EU States €22.9 Billion in Lost Tax Revenue

The European Casino Association (ECA) has reported that illegal online gambling operations cost EU member states an estimated €22.9 billion in lost tax revenue in 2025. This figure was presented at a high-level roundtable held in the European Parliament focused on combating illegal online gambling.

The report, based on the 2025 GCI study commissioned annually by the ECA from Gambling Compliance International (GCI), indicates a substantial increase in the illegal online gambling market targeting EU consumers. The market reached €91.6 billion in 2025, marking a 14% rise from the previous year.

European Parliament Roundtable

The roundtable, hosted by MEP Lukas Mandl, brought together a range of stakeholders including members of the European Parliament, the European Commission, the Anti-Money Laundering Authority (AMLA), Eurojust, the Joint Parliamentary Scrutiny Group (JPSG) on Europol, national gambling regulators, and industry representatives. The event operated under the Chatham House Rule.

ECA chair Erwin van Lambaart presented the findings, emphasizing the growing threat posed by unlicensed operators. He highlighted that these operators, often based outside the EU, bypass regulatory oversight and consumer safeguards while failing to contribute to public revenues.

Key Facts

Regulatory Efforts and Proposals

The ECA’s report follows a recent legislative proposal from the European Commission to overhaul Europol’s mandate. Published on June 24, 2026, this proposal aims to grant Europol a more active role in cross-border crime enforcement, including illegal gambling. MEP Lukas Mandl directly linked these developments, stating that illegal online gambling is a significant cross-border threat impacting consumer protection, organized crime, and the integrity of the internal market.

Van Lambaart echoed the urgency, stating that the 2025 GCI data clearly illustrates the problem. He called for enhanced cooperation between the European Commission, Europol, and AMLA to translate data into effective enforcement actions.

The ECA, which represents licensed casino operators and national associations across Europe, collaborates with EU institutions and national regulators to address sector-specific issues. Their annual impact study from GCI, a firm specializing in regulatory intelligence and market monitoring, helps track the scale of illegal gambling within the EU-27. GCI acquired Yield Sec in 2025 and has been providing data to the ECA for several years.

The distinction between licensed and unlicensed operators is clear for the ECA. Within the EU-27, an operator is either licensed in the market it serves or it is deemed illegal, with no recognized intermediary status. Licensed operators adhere to compliance obligations, provide consumer safeguards, and contribute to tax revenues, differentiating them from their unlicensed counterparts.

The European Commission’s proposal to expand Europol’s mandate is now proceeding through the ordinary legislative procedure, requiring approval from both the European Parliament and the Council.

For players, especially young adults, the rise of illegal online gambling presents significant risks due to the absence of regulatory oversight and player protection measures. The unchecked growth of these platforms undermines trust in the legitimate, regulated market and deprives public services of essential funding.

Source: European Gaming – https://europeangaming.eu/portal/latest-news/2026/07/08/208999/illegal-online-gambling-eu-tax-revenue-loss/