The European Gaming and Betting Association (EGBA) has stated that several European gaming markets need to progress their regulations with a clear direction to move forward. This is due to the rising threat of the black market and fragmented regulations across Europe, which pose challenges to players.

Denmark was cited by Maaren Haijer, Secretary General of the EGBA, as an example to follow due to its regulatory clarity. Denmark recently revised its guidelines and requirements for operators to include stronger compliance measures, such as a dual certification system, player identification, and new penalties for operators if they are non-compliant. The updated framework aims to enhance transparency and strengthen responsible gambling.

Other markets in Europe are also updating their regulations, including Germany, Malta, Italy and Lithuania, to improve player protection and compliance standards. However, Haijer highlighted that due to high taxes and strict requirements like in the Netherlands, markets are shrinking with players heading to the black market where they can play freely with fewer obstacles. Too many hurdles, such as strict deposit limits, could be a key reason why players are exiting the regulated landscape.

This is reinforced by statistics that show illegal online gambling generated nearly 75% of the EU’s gambling revenue in 2024, equating to €80.6 billion out of an estimated €114.3 billion market, indicating how unlicensed operators dominate the market. This rising threat of illegal gambling has affected many European markets and has resulted in an estimated loss of €20 billion in tax revenue for EU governments.  

To restore balance in the European market, a coordinated effort between governments, such as a unified European framework, could harmonise consumer protection, compliance and operational standards across markets to fight back against the threat. This strategy would support European jurisdictions with regulatory frameworks that are falling behind and bring structure for players and operators to the overall market.

European member states are moving towards similar laws; however, a key challenge of a unified regulatory framework is the sporadic nature of law and taxation across European countries. It’s positive that many European markets are taking steps towards stronger regulation to improve player protection, yet maintaining a positive player experience is crucial to keep players in the regulated sphere. To move forward, European markets working closer together will be essential to dismantle the growing presence of the black market.  

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