Unlicensed operators now control nearly three-quarters of Europe’s online gambling market, capturing €91.6 billion of the EU 27’s total €128 billion in online gross gaming revenue for 2025, according to a new report from GCI commissioned by the Campaign for Fairer Gambling. Licensed operators accounted for just €36.5 billion of the market.
The unlicensed segment has grown 74% since 2023, though the rate of expansion has begun to decelerate. Growth in the unlicensed market slowed to 13.6% year-on-year, down sharply from 53.2% growth recorded a year earlier. Despite the slowdown, unlicensed operators still outpaced their licensed counterparts, who posted 8.6% growth over the same period.
Shared Infrastructure Fuels Unlicensed Growth
The report emphasizes that both licensed and unlicensed markets operate on the same underlying infrastructure, including affiliates, streamers, payment providers, advertising networks, and search platforms. This shared ecosystem enables unlicensed operators to access the same customer acquisition channels and payment rails that regulated businesses rely on, making enforcement and market segmentation increasingly difficult for regulators.
The scale of this integration was illustrated by data showing that 95% of illegal World Cup 2026 stream views in Europe carried advertisements for unlicensed gambling brands, demonstrating how unlicensed operators leverage mainstream digital infrastructure to reach consumers.
Market Concentration Challenges Regulatory Frameworks
The dominance of unlicensed operators across the EU 27 raises questions about the effectiveness of current regulatory approaches. With unlicensed GGR now representing €91.6 billion annually, the gap between regulated and unregulated markets has widened significantly, suggesting that licensing frameworks may not be keeping pace with market realities.
The deceleration in unlicensed market growth from 53.2% to 13.6% could indicate either market maturation or the beginning of regulatory impact. However, the fact that unlicensed growth still exceeds licensed growth by five percentage points suggests structural challenges remain for regulated operators competing on compliance costs and product restrictions.
Implications for B2B Providers and Compliance
For B2B platform providers, payment processors, and affiliate networks, the report’s findings highlight the regulatory risk inherent in serving the European market. With the majority of market activity occurring outside licensing frameworks, infrastructure providers face increasing pressure to implement robust compliance and due diligence processes.
The shared infrastructure model means that many service providers may be inadvertently supporting unlicensed operations alongside licensed clients. As regulators become more aware of this dynamic, B2B vendors should expect heightened scrutiny of their client onboarding processes and potential liability for facilitating unlicensed gambling activity, even indirectly through advertising, payment, or affiliate channels.
