TLDR Offshore gambling operators earned 80.6 billion euros in 2024, compared to just 33.6 billion euros by licensed companies across the EU European governments lost an estimated 20 billion euros in tax revenue to illegal gambling platforms Domain blocking has proven ineffective as illegal operators quickly launch replacement websites Countries like Romania and the Netherlands are raising taxes on legal operators, widening the gap with unregulated competitors Seven European nations signed a joint agreement in November 2025 to target payment providers and tech platforms instead of chasing domains
Offshore gambling platforms now control 71% of all online gambling revenue across the European Union, according to a new report from Yield Sec.
The report found that illegal operators generated 80.6 billion euros during 2024. Licensed companies, by comparison, earned just 33.6 billion euros over the same period.
That gap means European governments missed out on roughly 20 billion euros in potential tax revenue last year.
The numbers paint a clear picture of how lopsided the market has become. For every euro a regulated operator earns, offshore platforms take home 2.40 euros.
Domain Blocking Fails to Stop Illegal Operators
Regulators have long relied on domain blocking as their primary tool against illegal gambling websites. The approach has not worked.
Illegal operators launch new web addresses almost immediately after their old ones are blocked. Government blacklists become outdated within days.
The European online gambling market originally grew through cross-border activity. Many countries previously allowed companies to operate using foreign licenses before domestic licensing regimes were established.
Denmark, Poland, the Netherlands, and Germany adopted Sweden’s regulatory model after it launched in 2019. But the growth of offshore platforms has outpaced these efforts.
Rather than curbing illegal activity, some new regulations have made things harder for licensed operators. Romania raised its gross