25% of Europe's online gambling market is already illegal?

[Jubilee58]

This is surprising because its quite big, and we are talking about €12 billion in 2025. That was already in 2025 so probably it has already increased now.. but lets just look at that 25% number and try to analyze what could be the reason.

Heres what I think.

People still trust illegal casinos, not literally illegal but casinos licensed somewhere else, because their withdrawal process is usually easier, not too many KYC requirements just like some popular casinos here in the forum.

So imagine how much the government is also losing from that 25%, because if those players are using regulated casinos then probably they could collect millions or even billions in taxes, though im not sure how much their tax rate is.

What are your thoughts on this?


source https://europeangaming.eu/portal/latest-news/2026/09/16/214175/europe-illegal-online-gambling-market-12bn-euromat-study/

This is really very surprising, on my own part I thought the gambling regulatory system in the European countries would be more strict since Europe is the hub for many sports events. These illegals gambling platforms they to offer more attractive services to gamblers in other to gain their interest making some of these legitimate gambling platforms to loose some of their customers to them. They do these by offering non kyc during registration, and also during withdrawal, and possibly give big bonuses to gamblers. However, this does not go well with the European gambling regulatory body because is a way of denying the people the benefits they are suppose to derive from these gambling platforms. It is obvious that the number of illegal gambling platforms are increasing year to year, and it is not likely to stop if any preventative measures is not taking. So far these gambling platforms are operating with the province of Europe, the government is suppose to generate revenue from them, and any gambling company that refuses to comply with the regulatory body should withdraw their services. I understand the problem is not the users of those platforms because they have found those platforms more compatible with them, but they regulatory body should endeavor to fish them out , and ensure they are properly registered before they continue with their services.

[KTChampions]

This is surprising because its quite big, and we are talking about €12 billion in 2025. That was already in 2025 so probably it has already increased now.. but lets just look at that 25% number and try to analyze what could be the reason.

Heres what I think.

People still trust illegal casinos, not literally illegal but casinos licensed somewhere else, because their withdrawal process is usually easier, not too many KYC requirements just like some popular casinos here in the forum.

So imagine how much the government is also losing from that 25%, because if those players are using regulated casinos then probably they could collect millions or even billions in taxes, though im not sure how much their tax rate is.

What are your thoughts on this?


source https://europeangaming.eu/portal/latest-news/2026/09/16/214175/europe-illegal-online-gambling-market-12bn-euromat-study/

I think that figure (25%) is too low. What fool would take their money to a regulated casino? Obviously, taxes and regulatory compliance costs reduce the RTP that a casino can afford to offer players. It seems to me that now the majority of Internet users, even older people, are in such an information environment that they can act differently from what regulators want. You don’t need to be a hacker or a fraudster to do this. Thanks to cryptocurrency, the infrastructure to tell brazen officials to go to hell is already in place and accessible to everyone.
As for the fact that government budgets are missing out on tax revenue - that’s a very good thing! It means the money stays with the people instead of going to corrupt governments that would just piss it away on moronic, made-up problems.

[gracreavix]

I don't think the main reason people use other casinos that might be fake is due to KYC, their are a bunch of reasons, like withdrawal limit, lack of privacy, bad customer care and so on. KYC might be one many reasons that everyone is concerned about, but there are other reasons why they do what they do.

[cryptomaniac_xxx]

It's already big numbers, and I thought that Europe is really very strict as far as online gambling goes, so I'm wrong with that as the data shows that they are gambling illegally more often?

In any case, there could be gamblers that they didn't know that they are playing illegal sites or just ignore that reasons as they might also wanted to avoid legal casinos for tax purposed. But the former could be really be hard for gamblers specially if they win big and then the casino refuse to pay.

So there is still this big burden so we might as well go with legal methods and pay what is due instead of our money being stolen by this fly by night online casinos.

[TedMosby]

This is surprising because its quite big, and we are talking about €12 billion in 2025. That was already in 2025 so probably it has already increased now.. but lets just look at that 25% number and try to analyze what could be the reason.
[...]

Only 25%? Meanwhile, 100% of online gambling in my country is illegal. Even when it's illegal like now, online gambling transactions reached around $2.26 billion, with total deposits of around $595 million in Q1 2026 [1]. This number is only from one country, Indonesia.

Just imagine how much money my country could make from gambling taxes by making gambling legal. We could probably build 1,700 schools that cost around $35,000 each, only by applying a 10% tax on gambling deposits (Q1 2026) alone. For your reference, I asked AI about the average gambling tax and it says the average is around 15%-25% based on Gross Gaming Revenue (GGR).

Source:
[1] https://www.antaranews.com/berita/5663168/ppatk-perputaran-dana-judi-online-rp403-triliun-pada-triwulan-i-2026

[bakasabo]

I only want to know if in these illegal casinos play regular players (then a big question why they have ignored reputed casinos) or by illegal casino it was meant a place used for money laundering; place where normal players wont play or wont even know such casino exist.

Are the levels of "illegal casinos"? In articles it was mentioned casinos were operating without license. Could it be that casino have its reason not to purchase a license, but still operates fairy? As people on the market - some of them are not registered as individual entrepreneurs or own a company, but they are fair traders after all. 

[_act_]

I only want to know if in these illegal casinos play regular players (then a big question why they have ignored reputed casinos) or by illegal casino it was meant a place used for money laundering; place where normal players wont play or wont even know such casino exist.

According to the report, money is laundered through the gambling sites. But I do not believe that licensed gambling sites are not also among as long as KYC is not necessary.

Are the levels of "illegal casinos"? In articles it was mentioned casinos were operating without license. Could it be that casino have its reason not to purchase a license, but still operates fairy?

The main reason is because they do not want to pay tax. It is very possible some are doing it to launder money.

[Maslate]

Are the levels of "illegal casinos"? In articles it was mentioned casinos were operating without license. Could it be that casino have its reason not to purchase a license, but still operates fairy? As people on the market - some of them are not registered as individual entrepreneurs or own a company, but they are fair traders after all. 

The answer is they are not forced to get a license because they are still getting clients from the European market. By "unlicensed or illegal casinos" they are referring to casinos that do not have a license in Europe, but they could have a license elsewhere like Malta, or some do not really have a license at all.

[Smartvirus]

Honestly this is what I also don't understand. Lets say they penalize those illegal casinos, how can they really enforce that if the casino is operating in another country?

How can they force them to pay the penalty if they are outside their jurisdiction? If it was that easy, I don't think we would still see illegal gambling growing this big and many gamblers still using those sites. So maybe penalizing them sounds good on paper, but enforcing it against overseas operators is another problem.

You’re making a good point and from what the OP had earlier stated, that the casinos are not literally illegal but has there registrations some place else.

I have had to read a couple of terms of service for most of the casinos I can find and most times, casinos that doesn’t operate in your jurisdiction would always be inaccessible by default and some would have to use statements that encourages you to use their service only as it applies to your jurisdiction. In essence, you’re advised to not gamble on their casino if it isn’t allowed in your country.

With that being said, it falls to the citizen or gambler to avoid using such casino while in a restricted country. The most authorities can do when discovered is ban the casino while, the gambler accessing such service in a restricted zone faces the law as it applies to that situation.

[leea-1334]

never to the point I will ever trust them with my KYC. Ask any of the serious gamblers here, it is the same.

You are saying you will never comply with kyc requirement?
What happened if you are playing in a casino that allow you even without kyc, and then you hit a big win and then they suddenly require you to do kyc, What your action?

I leave it, simple That is why I pick really carefully where I deposit serious amounts. That is why I stuck with sportsbet for many years and now Jackpotter and Rainbet. They do not ask me for KYC and the moment they do they will lose me as a customer.

SB community manager moved to Jackpotter. If they force me to KYC to get my payout they lose their reputation. That is worth millions.

Privacy for sure. But also fear of our governments. Life is scary enough to be paranoid.

In short you don't trust the government.. But how about other institutions like banks, don't you have a bank deposit, pretty sure if you have one you do basic KYC before you can open an account, so if you have then you trust the government.

You misunderstood. My government wants to know what we do online. I do not need them to know I am using a casino. I have a bank account like all citizens who earn income. I am forced to do that or I cannot even get a job. That does not automatically mean I trust my government,,, you must understand the difference?

We are forced to ID, have a tax ID, register our house, everything. You can have all these without trusting the government right

[tsaroz]

You misunderstood. My government wants to know what we do online. I do not need them to know I am using a casino. I have a bank account like all citizens who earn income. I am forced to do that or I cannot even get a job. That does not automatically mean I trust my government,,, you must understand the difference?
We are forced to ID, have a tax ID, register our house, everything. You can have all these without trusting the government right

Another reason why people in Europe are not telling there government where and how they gamble are the absurd taxes in some regions. Some countries tax the gambling operators heavily while some charges the users. The gambling company that is being charged a huge amount would have less to give back to the users as bonuses and offers or even odds in some cases while user being charged hurts the pocket instantly. That's why they are more interested in non-KYC gambling sites that accepts crypto.

[Pandu Geddon]

I don't think the main reason people use other casinos that might be fake is due to KYC, their are a bunch of reasons, like withdrawal limit, lack of privacy, bad customer care and so on. KYC might be one many reasons that everyone is concerned about, but there are other reasons why they do what they do.

The concern still lies with KYC, because with the data that has been provided to legal casinos, customer data can also be monitored by the government. This will also relate to taxes or other regulations that bind gamblers. Illegal casinos are not without a license, but many gamblers may also take the safer route by playing in legal casinos. However, seeing the figure of 25%, that is quite a lot and the government will surely pursue that number.

[hedgeh0g]

I don't think the main reason people use other casinos that might be fake is due to KYC, their are a bunch of reasons, like withdrawal limit, lack of privacy, bad customer care and so on. KYC might be one many reasons that everyone is concerned about, but there are other reasons why they do what they do.

The concern still lies with KYC, because with the data that has been provided to legal casinos, customer data can also be monitored by the government. This will also relate to taxes or other regulations that bind gamblers. Illegal casinos are not without a license, but many gamblers may also take the safer route by playing in legal casinos. However, seeing the figure of 25%, that is quite a lot and the government will surely pursue that number.

Online platforms often claim they do not share customer data with tax authorities usually to emphasize how much they care about their clients, or something to that effect. However, I believe that the moment a competent authority or regulatory body submits a request regarding a specific customer or when other supervisory or tax agencies get involved the gambling platform will immediately hand over the information. Otherwise, the platform itself would face an audit by those regulators. That is something they want to avoid at all costs, as I suspect many of them might have issues of their own in this regard.

[Agbamoni]

Supporting unregulated casinos to stop service is like advocating for the government. Meanwhile, the government of my country doesn't care about us, the people, so why do I care about them?

If there is an unregulated casino that allows frequent deposits and withdrawals without interruption, I will use it. All the taxes I've been paying what good has it done for me?

[freedomgo]

Supporting unregulated casinos to stop service is like advocating for the government. Meanwhile, the government of my country doesn't care about us, the people, so why do I care about them?

This is the right answer to your question and I'm sure others would be able to relate to this as well. 
Me personally, I feel convenient using casinos registered locally because I'm able to use fiat ( online payment method ) for gambling and the withdrawals are instant. 

But with the news I read especially the latest that there's a big winner who won millions but the casino says it's a glitch, imagine how bad cheaters they are. 

So me I'm anti government for the gambling side only

If there is an unregulated casino that allows frequent deposits and withdrawals without interruption, I will use it. All the taxes I've been paying what good has it done for me?

you must really hate your government. 

[lombok]

You’re making a good point and from what the OP had earlier stated, that the casinos are not literally illegal but has there registrations some place else.

I have had to read a couple of terms of service for most of the casinos I can find and most times, casinos that doesn’t operate in your jurisdiction would always be inaccessible by default and some would have to use statements that encourages you to use their service only as it applies to your jurisdiction. In essence, you’re advised to not gamble on their casino if it isn’t allowed in your country.

With that being said, it falls to the citizen or gambler to avoid using such casino while in a restricted country. The most authorities can do when discovered is ban the casino while, the gambler accessing such service in a restricted zone faces the law as it applies to that situation.

Indeed, international legality act as official protection mechanism for digital betting organizations, as it will protect them from both legal and illegal acts. The foreign license only legitimizes the business from the source but does not legalize any activity in limited areas. Restrictive conditions are put in place so that all the legal responsibility lies on the shoulders of the local user only.

[Don Pedro Dinero]

Supporting unregulated casinos to stop service is like advocating for the government. Meanwhile, the government of my country doesn't care about us, the people, so why do I care about them?

This is the right answer to your question and I'm sure others would be able to relate to this as well. 

The thing is, the article mentions it, most of those casinos where Europeans gamble illegally are cryptocurrency casinos.

The research points to cryptocurrency as central to that growth. Jelavić said traffic analysis showed crypto had been key to building many of these businesses, both as a point of product differentiation and as a regulatory workaround.

You pay lower fees, in many cases there’s no KYC for small amounts, and you avoid paying tax. So they can go fuck themselves, the government.

I experienced the changes brought about by the introduction of regulations in European casinos, and what they did was to compartmentalise the market, thereby reducing footfall; they imposed taxes on casinos, which led to higher commission rates and fewer promotions (in other words, it was us gamblers who ended up paying those taxes); and they also taxed the winnings of successful gamblers. It was bad for the gamblers.

[coinrifft]

Supporting unregulated casinos to stop service is like advocating for the government. Meanwhile, the government of my country doesn't care about us, the people, so why do I care about them?

If there is an unregulated casino that allows frequent deposits and withdrawals without interruption, I will use it. All the taxes I've been paying what good has it done for me?

But what if there is a time that you can't withdraw your winning because they are unregulated? There are so many cases that we have heard about this one, illegal casinos that gamblers play and because they don't want to pay government taxes, they used it.

However, this casinos might have known that reason too and so it's possible that they are giving us a trap here. That when we win and win big, they might not give us that winning and we can't do anything about it and can't complain to any government agencies is because we played on unregulated casinos.

[leea-1334]

You misunderstood. ====

Another reason why people in Europe are not telling there government where and how they gamble are the absurd taxes in some regions. Some countries tax the gambling operators heavily while some charges the users. The gambling company that is being charged a huge amount would have less to give back to the users as bonuses and offers or even odds in some cases while user being charged hurts the pocket instantly. That's why they are more interested in non-KYC gambling sites that accepts crypto.

Hehe gambling companies getting taxed and saying that is the reason they have less to give back to players? Come on There is no casino that uses this reason, but I will say that indie labels definitely enjoyed giving back to users talking about the old platforms for dice, no tax, no kyc, and great House Edge.

Casinos? Unlicensed means they can rip you off and not have a way for players to seek legal means to challenge the casino scam

[Sandra_hakeem]

I don't think the main reason people use other casinos that might be fake is due to KYC, their are a bunch of reasons, like withdrawal limit, lack of privacy, bad customer care and so on. KYC might be one many reasons that everyone is concerned about, but there are other reasons why they do what they do.

The concern still lies with KYC, because with the data that has been provided to legal casinos, customer data can also be monitored by the government. This will also relate to taxes or other regulations that bind gamblers. Illegal casinos are not without a license, but many gamblers may also take the safer route by playing in legal casinos. However, seeing the figure of 25%, that is quite a lot and the government will surely pursue that number.

Illegal casinos have continuously coexisted for more than 3 or 4 decades now since the formal licensing laws was passed. 25% is actually a growing number CMIIW, because they have tried to tackle down the loophole for years now and it has been an impossible task for the government. They want all the cuts and taxes for themselves so if there was a way to block them completely, they would. Illegal gambling will always exist.

That being said, anyone who avoides licensed casinos are only trying to keep their privacy, evade the KYC policies and enjoy the extended withdrawal limits that those illegal casinos can offers. It gets deeper than that because there's a high chance of falling for a rug pull in an attempt to evade KYC.