CEOs from prominent operators, including Bet365, Flutter, Entain, Evoke, Kindred, and Betsson, have expressed concern that tighter regulations in Europe are fueling black market gambling across the continent. The 2024 Sustainability Report from the European Gaming and Betting Association (EGBA) highlights a call from these CEOs for a more balanced approach to controls on licensed operators.
After a period in which countries such as the Netherlands, Italy, Spain, and Sweden have tightened how and where licensees can promote their offerings, and stake limits in Great Britain and Germany change core gambling products, illegal gambling is reportedly on the rise. The CEOs assert that stringent regulations are driving players towards unregulated markets, thereby exacerbating the issue.
The signatories of the report include some of the largest gambling operators in Europe: Peter Jackson of Flutter Entertainment, Niels Andén from Kindred Group, Evoke’s Per Widerström, Betsson’s Jesper Svensson, Bet365 joint-group CEO John Coates, and Entain Group interim CEO Stella David. They emphasized their commitment to responsible gambling (RG) by highlighting the ongoing development of advanced safety tools, which nearly 40% of their European players now use voluntarily. These tools, coupled with increased player interaction to promote safer play, are part of their efforts to refine their approach continually.
However, the CEOs point out that they are increasingly competing against the offshore market, where player safety is often a secondary concern or entirely ignored. Regulatory frameworks in various European countries are worsening the situation by preventing attractive and competitive offers to players, which could steer them toward safer, locally regulated websites. The offshore brands, with their ability to offer bonuses and promotions that legal operators cannot match, are channeling players away from the regulated market.
The letter from the CEOs emphasizes the urgency of the situation: “The time to act is now. While we strongly support enforcement measures against black market websites, competitive, regulated online gambling markets are the only effective solution.” They argue that creating a balanced regulatory environment is crucial to keeping players within the legal market and ensuring their safety.
The EGBA report was released shortly after France’s Association Française des Jeux En Ligne (AFJEL) estimated that the country’s illegal gambling market had surpassed the legal one, with four million illegal players in 2023 compared to 3.6 million in the legal market. Similarly, a 2023 report from the University of Leipzig found that only 50.7% of online gambling in Germany was conducted through legal operators, with the black market generating approximately three-quarters of the online revenue. This situation results in significant tax revenue losses for the country.
In response, the German Sports Betting Association (DSWV) has called for easing regulations, including restrictions on marketing and bans on live betting. These adjustments aim to make the legal market more attractive and competitive, thereby reducing the appeal of offshore sites.
Despite these challenges, the EGBA report also highlights positive developments in the legal market regarding responsible gambling. A record 65% of European gamblers used safer gambling tools in 2023, up from 60% in 2022, with 37% doing so voluntarily. This increase is attributed to a rise in messages sent to customers, with 67.6 million messages sent in 2023, a 49% increase from the previous year. Personalized messages based on players’ activities played a significant role in encouraging safer gambling practices.
The impact of these tools has been significant, with 65% of at-risk customers seeing their gambling behavior improve or stabilize due to safety messages. Additionally, 45% of players improved the sustainability of their play, and 20% either stabilized their play or stopped altogether. These advancements underscore the importance of a balanced regulatory approach that supports both player safety and market competitiveness.
