European Casino Association Calls for Action against Illegal Online Gambling Surge
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The European Casino Association (ECA) has welcomed a parliamentary question from MEPs Yvan Verougstraete and Sandro Gozi addressing the escalating issue of advertising for illegal online gambling platforms, notably on Meta’s platforms like Facebook and Instagram. The MEPs have urged the European Commission to take decisive action against these unauthorized operators who target EU citizens, including vulnerable minors, wiht aggressive marketing tactics while evading taxes and disregarding player protection standards.
This call to action comes amidst growing concerns about the size and impact of the illegal online gambling market in the EU. Recent data highlights significant financial and social consequences, prompting demands for stricter enforcement of regulations like the Digital Services Act (DSA).
The Scale of the Illegal Online Gambling Market in the EU
According to a study commissioned by the ECA from YieldSec, the illegal online gambling market in the EU generated €80.6 billion in gross revenues in 2024. https://www.europeancasinoassociation.org/news/eca-study-reveals-illegal-online-gambling-market-in-eu-reached-80-6-billion-in-2024/ This represents a significant 71% of the entire online gambling market within the EU.
The illegal sector experienced a dramatic 53% growth rate compared to 2023, significantly outpacing the regulated sector’s revenue growth of 33.6 billion euros. This disparity results in an estimated loss of approximately €20 billion in tax revenue for European governments in 2024 alone – funds that could be allocated to vital public services like education,healthcare,and community support.
Furthermore, the study revealed that 81 million Europeans – 18% of the EU population – have engaged with unauthorized gambling platforms, leaving them without any consumer protection safeguards.
Meta and the Role of Digital Platforms
Internal documents from Meta indicate that approximately $16 billion, roughly 10% of the company’s global revenue in 2024, is derived from advertising related to scams and prohibited products, including unauthorized online casinos. https://www.theguardian.com/technology/2024/nov/21/meta-profits-from-illegal-gambling-ads-eu-mps-claim Users are reportedly exposed to an estimated 15 billion fraudulent advertisements daily.
These practices raise serious concerns about compliance with the Digital Services Act (DSA), particularly provisions related to managing illegal content, transparency obligations, and restrictions on high-risk targeted advertising. As MEP Gozi stated,the DSA is a cornerstone of the European digital model,designed to protect citizens,impose clear obligations on large platforms,and prevent the digital space from becoming unregulated. https://www.europarl.europa.eu/news/en/press-room/20241120STO99407/mps-call-for-commission-action-against-illegal-online-gambling-ads-on-meta-platforms
ECA’s Call to the european commission
The ECA is urging the European Commission to fully utilize the enforcement mechanisms available under the DSA to hold digital platforms accountable for their responsibilities. Specifically, the ECA seeks to protect EU citizens from illegal gambling activities that pose risks to public health, distort competition, and undermine the integrity of regulated markets.
The ECA emphasizes that every euro lost to criminal operators represents a loss for European citizens, legitimate businesses, and communities that depend on a fair tax system and a secure, regulated gambling habitat.
Key Takeaways:
* The illegal online gambling market in the EU is substantial and growing rapidly, reaching €80.6 billion in 2024.
* this illegal activity results in significant tax revenue losses for European governments (estimated at €20 billion in 2024).
* A large proportion of Europeans (18%) have interacted with unauthorized gambling platforms, lacking consumer protection.
* Meta is under scrutiny for allegedly profiting from advertising related to illegal online casinos.
* The ECA is calling for stricter enforcement of the Digital Services Act (DSA) to hold digital platforms accountable.
Looking Ahead:
The ECA’s call for