European CEOs Voice Growing Concerns Over the Resurgence of Black Market Gambling

CEOs from prominent operators such as Bet365, Flutter, Entain, Evoke, Kindred, and Betsson have warned that increasingly strict regulations across Europe are driving an increase in black market gambling. The European Gaming and Betting Association’s (EGBA) 2024 Sustainability Report includes a plea from these CEOs for a more balanced regulatory approach for licensed operators.

They note that recent regulatory changes in countries like the Netherlands, Italy, Spain, and Sweden, which have tightened promotional and operational controls for licensees, along with changes to stake limits in Great Britain and Germany, are contributing to a rise in illegal gambling activities.

The CEOs, including Peter Jackson (Flutter Entertainment), Niels Andén (Kindred Group), Per Widerström (Evoke), Jesper Svensson (Betsson), John Coates (Bet365), and Stella David (interim CEO at Entain), represent some of the largest gambling operators in Europe. They emphasize the importance of developing advanced safety tools, noting that nearly 40% of their European players now use these tools voluntarily. They also highlight increased interactions with players to promote safer gambling practices and continuous refinement of their approach.

Despite these efforts, the CEOs report that they are facing growing competition from the offshore market, where player safety is often neglected. They argue that stringent regulations in European countries are exacerbating this issue, making it difficult for legal operators to offer attractive and competitive options to players. As a result, players are being drawn to unregulated websites that can provide more appealing bonuses and offers.

The letter from the CEOs stresses the urgency of addressing this issue: “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.”

The EGBA report also highlights recent findings from France’s l’Association Française des Jeux En Ligne (AFJEL), which estimated that the country’s illegal market had surpassed the legal one, with four million illegal players in 2023 compared to 3.6 million legal bettors. Similarly, a 2023 report from the University of Leipzig estimated that only 50.7% of Germany’s online

gambling revenue was channeled through legal operators, with the majority being generated by the black market. This situation results in significant tax revenue losses for the country.

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The German Sports Betting Association (DSWV) has called for a relaxation of regulations, including marketing restrictions and bans on live betting, to address these issues.

Despite the concerns about the black market, the EGBA report also highlights progress in responsible gambling within the legal market. In 2023, a record 65% of European gamblers used safer gambling tools, up from 60% in 2022, with 37% of customers doing so voluntarily. Approximately 21 million bettors used tools to limit or control their gambling, a 14% increase from the previous year.

This rise in usage is attributed to an increase in messages sent to customers, totaling 67.6 million in 2023, a 49% increase from the 45.5 million messages sent in 2022. Of these, 23 million messages were personalized based on players’ activities. The tools had a significant impact, with 65% of customers at risk of problematic gambling seeing improvement or stabilization in their behavior. Additionally, 45% improved the sustainability of their play, and 20% either stabilized or ceased gambling altogether.

The report underscores the importance of balanced regulations that support a competitive and safe gambling environment while preventing the growth of illegal gambling activities