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EU Gambling Authorities Launch Alliance Against Rogue Operators
Seven major European regulatory bodies have agreed to share data in an effort to combat illegal online gambling. This is poised to be one of the largest cross border intelligence exchanges, with regulators investigating website data, payment channel methods, and advertising strategies.
The goal is to make iGaming safer for consumers, with more clarity on which sites are legal, emphasizing basic protections like age checks and self-exclusion, and reducing the average player’s exposure to dodgy, unregulated sites. However, there are concerns about the possible intelligence collaboration, as different countries have different privacy standards. Without the proper framework, handing over private player information could lead to a loss of trust and backfire. While a deal has been struck, no action has been taken just yet.
European Regulators Unite
In Madrid, at the Spanish Directorate General for Gambling Regulation, the representatives of 7 European regulatory bodies agreed to join forces in their plight to control the black markets in their respective countries. The deal was formalized on November 12, coinciding with the 1st International Gaming Congress in Madrid, a conference which analyzed the social impacts of gambling, with officials and international experts alike talking about regulatory challenges and responsible gambling initiatives. The following parties agreed to join forces to take on Europe’s rising black market:
- Great Britain: UKGC (UK Gambling Commission)
- Germany: GGL (Gemeinsame Glücksspielbehörde der Länder)
- Italy: ADM (Agenzia delle Dogane e dei Monopoli)
- France: ANJ (Autorité Nationale des Jeux)
- Spain: DGOJ (Dirección General de Ordenación del Juego)
- Austria: BMF (Bundesministerium für Finanzen)
- Portugal: SRIJ (Serviço de Regulação e Inspeção de Jogos)
In August of this year, a study conducted by Yield Sec determined that illegal gambling operators captured 71% of Europe’s online betting and casino markets in 2024. Money wise, that comes out to around €80.65 billion, and the bad news didn’t stop there. The illegal market GGR grew by 53% from the previous year, much faster than the regulated market’s 30%. The balance between illegal and officially licensed iGaming sites is growing at an imbalance, and if regulators don’t close on it now, the market will be overrun with unlicensed platforms.
Defining the Black Market in Europe
Please note, that in the study, the definition of illegal sites encompassed all online sportsbooks and online casinos that were not officially registered in a country. That means, even sites registered in Malta, Curacao, and other international gambling jurisdictions were, for this report, placed among the list of unregulated sites
Their position is contentious at best, as they are fully regulated and licensed online gaming platforms, but do not hold local iGaming licenses in all EU jurisdictions, which blurs the lines a little between what’s completely legal, what is dodgy, and what is best defined as the gray market.
What Information Regulators Will Share
There are three major territories that the 7 regulators want to tackle. These were specially selected to help identify, track, and isolate the illegal operators across borders, making it easier for regulators to crack down on the unregulated markets within their own borders.
Website and Domain Details
Exchanging information on domains linked to unlicensed operators, such as hosting data, redirects, mirror sites and affiliated networks, can assist authorities in identifying the non compliant sites. All regulators do this independently already, blocking illegal sites, and shutting down operators who are deemed to be breaking the laws. However, by having a greater backlog of domains and networks, it will become a lot easier for authorities to curb the black market sites in their own borders.
Payment Channel Data
This is perhaps one of the most promising intel breakthroughs for authorities. Payment processors, wallet services and banking channels used by illegal sites will be targeted, picking out those that have obscure payment rails or mislabeled merchant codes. There are many ways unregulated operators can provide deposit and withdrawal processors to players, including new crypto payment setups, peer to peer wallets, and disguised card payment processors.
Side note for players: when you are looking at iGaming sites, always look for iGaming licensure, and the next step is to check payment processors. Any shady methods that are not approved in your jurisdiction should be avoided at all costs. Your money and personal banking or financial details could be at risk.
Advertising & Marketing Strategies
Authorities have already cracked down on marketing strategies used by the unwanted sites thoroughly, but there are still areas that are increasingly difficult to reach and monitor. For instance, influencer campaigns, social media placements, Telegram channels and AI generated content targeting bettors can also have masked ads to unregulated sites. The aim from the regulators is to report these ads and their source, and by collaborating, the individual authorities can bring down the ads a lot quicker and more effectively.
Clearing the Gray Market Conundrum
One of the main areas regulators are looking into clarifying is the gray market, and distinguishing licensed international iGaming sites from genuinely dangerous rogue operators. The gray market comprises operators who don’t hold a license for a specific jurisdiction, but they are licensed in a reputable jurisdiction abroad. The EU has an open market, with the “freedom to provide services” across borders, specifically within the EEA. Yet they don’t have the local rights granted by the official authorities in a country.
The licensed gray market platforms generally hold licenses from:
To clarify, sites regulated by these authorities are not illegal. They are fully legitimate, with oversight from reputable gambling commissions, a duty of care for their consumers, and the sites only offer provably fair gaming products. However, sites licensed in those territories may not necessarily carry a license in the country you are based in – yet they still may operate there. Their claim to the market is through the pan-European market – but some regional authorities will draw the line and push these sites out.
Individual Efforts to Combat Illegal Gambling
European regulators have been especially busy in 2025 in their efforts to break down the network of unregulated and illegal gambling sites. Their efforts have been pretty widespread, with some seemingly targeting the industry as a whole, and others aiming specifically at unwanted gambling sites.
Spain
Spain’s DGOJ has been one of the most assertive regulators in Europe this year. The authority has issued a series of fines for unlicensed promotion, made strict anti-smoking style compulsory gambling disclaimers, is in the middle of rolling out an AI payment monitoring system for licensed sites, and recently increased cooperation with payment providers to block unauthorized transactions. Spain pushed hard for this alliance and is likely to lead the operational rollout.
Italy
The biggest news in Italy was the ADM’s full gambling license framework reforms. The ADM has been aggressively targeting illegal operators and affiliates, specifically skin sites. With the gambling reforms, Italy cut the number of betting sites from over 400 to 50. The ADM limited the number of licenses it can offer, increased the fees, and now operators can only have 1 site per license. Already, the market has cleared up, but with it, big brands like Betway and Unibet are set to leave Italy, and there are concerns that the reforms could push out smaller operators.
Germany
Germany’s GGL continues to refine its controversial but firm stance on illegal gambling. The regulator has escalated its IP blocks, imposed payment blocking orders, and filed lawsuits against operators and affiliates it deems illegal. The GGL has repeatedly stated that cross-border cooperation is essential, making Germany one of the most vocal supporters of the Madrid agreement.
Great Britain
The UKGC, while outside EU frameworks, remains one of the most influential regulators globally. The Commission has launched stricter enforcement actions against all operators targeting UK consumers, even targeting landbased UK casinos and internationally recognized software providers. A casino in Leeds had its license pulled, and Spribe’s UKGC license was suspended for not fully complying with the laws.
The UKGC also improved advertising oversight and is rolling out new player safety measures to combat problem gambling in the UK. The gambling sector in the UK is also preparing for a series of tax hikes in the long-awaited, and dreaded, Autumn Budget.
European Market Going Forward
The easiest way to manage the black market in Europe would be to create a unified EU licensing model. There are organizations that work to help unify the laws and make cross border legislation easier for both operators and authorities. Such as the EGBA, which recently made a seminar on the Markers of Harm for the broader EU market. Perhaps uniting to create a cleaner gambling market for Europeans can be the first step to protecting players and deterring gamers from using potentially dangerous sites. But if the regulators go too far, as some arguably have already, they risk pushing players away.
Whatever happens, new legislation will not come into effect overnight. These kinds of decisions require proper research, voting panels, and maybe even liaisons with regulated channels to determine the best and least obstructive course of action.
