Illegal gambling in Europe has caused losses of €18 billion — the scale of the problem

The European Gaming and Betting Association (EGBA) has informed the European Commission about the critical scale of the problem: in 2025, the illegal segment captured 27%, or €18 billion in GGR, from the European online gambling market. Fake clone websites of legal brands, unverified illegal apps, and phishing schemes on social media steal players’ data, fuel addiction, and leave users without any protection.

Fraudsters copy the domains of well-known operators, offer “bonuses” without verification, and create an illusion of reliability. The risks are enormous: theft of personal data, financial losses, and the absence of responsible gaming tools. The legal sector cannot withstand such unfair competition - national blocking measures are ineffective, as illegal operators reappear through mirror sites faster than they can be shut down. The European Commission is preparing a systematic, coordinated action plan for the second quarter of 2026, as fragmented measures have proven ineffective.

The figures clearly illustrate the problem. €18 billion is not only lost tax revenue but also a blow to trust in the industry as a whole. Every clone of a legal website diverts players, damages the reputation of licensed operators, and fuels the grey market, which invests neither in safety nor in transparency. European regulators recognize that without coordinated action at the EU level, national barriers are powerless against the cross-border illegal market.

To avoid the European trap, it is necessary to define the key priorities of a young market. The illegal sector thrives not because of weak blocking measures, but due to gaps in system architecture and ambiguous rules that push players into the grey zone. The young Ukrainian segment needs mechanisms such as unified verification standards, consistent taxation, automated transaction tracking, and a flexible compliance model that makes the legal market more attractive.

Structure matters more than speed. Inefficient “hunting” for mirror sites will not stop the shadow economy, only a systemic model with clear rules can bring the market to a new level. Legal businesses will gain a level playing field, while the state will maximize revenues and ensure player safety. Europe’s €18 billion is a warning: without a comprehensive architecture, market potential will turn into chronic losses. It is time to invest in the system, not in chasing symptoms.