According to the latest joint report of the European Lottery Association (ECA) and the intelligence agency Yield Sec, illegal online lottery dominated the EU digital market in 2024, with the unlicensed operator taking over 71 per cent of the EU ‘ s online lottery, generating a total revenue of 80.6 billion euros, more than twice as much as that of a formal licensed operator, and the black market has become Europe ‘ s largest single lottery channel. Even more serious is the abuse of online advertising channels by illegal operators to target vulnerable groups such as minors and self-restricted players. Some platforms even commit fraud by misappropriation of legal casino brand names, circumventing consumer protection rules, liability gambling mechanisms and tax obligations. In the face of the ever-increasing impact of illegal gambling, the United Kingdom, France, Germany, Italy, Austria, Portugal and Spain have recently issued a joint statement committing themselves to combating illegal online gambling through intelligence-sharing and joint law enforcement. This consensus was reached during the first International Lottery Congress in Madrid this month, and special meetings were held at the headquarters of the Spanish General Directorate of Lottery (DGOJ).
According to the declaration, seven national regulators will systematically share information on illegal operators and share expertise and best practices in identifying, investigating and sanctioning illegal operators. At the same time, the regulatory bodies have issued a joint appeal to digital platforms and social media networks to strengthen their control mechanisms and block channels for the dissemination of advertisements by unqualified operators. The statement stressed that “the fight against illegal online casinos is the first task facing the regulatory jurisdiction. Its non-frontier attributes and technological iterative speed make it easier for illegal operators to circumvent regulation. This not only poses a serious threat to consumer rights and public health, undermines social order and further undermines the space for legitimate operators to survive. In essence, illegal gambling is dismantling the entire regulatory system established to protect the public interest. In particular, the statement states: “We share the concern that unauthorized operators are intruding through digital channels such as social media, video platforms and the promotion of coalition networks, targeting jurisdictions. Such acts not only violate national laws, but also place citizens, including minors and vulnerable groups, at high risk of illegal gambling.”
At the Madrid Conference, the Italian Lottery Regulatory Authority (ADM), the British Lottery Commission (GC) and the Spanish DGOJ submitted, respectively, an analysis of the current state of regulation and emerging challenges and a coordinated response strategy. It is worth noting that illegal gambling governance was also at the heart of last month’s conference on the regulation of gambling in the German-speaking Community, highlighting the fact that it has generated a high level of consensus in the European multi-level regulatory system.