EGBA Urges European Commission Action on Offshore Gambling Amid Surge in Online Fraud

Quick Summary

• The European Commission (EC) is developing an action plan to combat online fraud, focusing on cross-border collaboration among EU states.
• The European Gaming and Betting Association (EGBA) has raised concerns over the proliferation of offshore gambling operators targeting European players.
• Industry warns that unregulated sites undermine national laws, channel consumers to illicit platforms, and facilitate criminal activity.
• The EU initiative reflects growing regulatory momentum to tighten oversight and harmonize enforcement across member states.

What Happened

Earlier this year, the European Commission initiated the formulation of a comprehensive action plan to tackle online organized crime within the EU, with a particular emphasis on cross-border cooperation. In tandem, the European Gaming and Betting Association (EGBA) has drawn Brussels’ attention to the steadily increasing threat posed by unlicensed offshore gambling operators. In its recent submission to the EC, EGBA detailed the proliferation of illicit sites, arguing that the integrity of European gambling regulation—and the safety of consumers—are being systematically undermined by these actors.

This call for EU-level intervention comes as part of a broader consultation aimed at expanding joint efforts to combat online fraud, building on rising concerns that individual member states’ fragmented approaches are proving insufficient against sophisticated, cross-jurisdictional cybercriminals.

Why It Matters

The challenges posed by offshore gambling reach far beyond regulatory semantics. At stake is the effectiveness of Europe’s national gambling frameworks, public health initiatives, and market stability. EGBA’s intervention underscores a stark reality confronting EU policymakers: despite national licensing regimes, the ease of digital access has enabled unauthorized operators to target European consumers at scale, regardless of local prohibitions.

For regulated operators, the persistence of offshore competition undermines consumer protection standards established through domestic laws—such as robust age verification, anti-money laundering protocols, and responsible gambling safeguards. Unlicensed sites typically evade such requirements, increasing the risk of addiction, fraud, and money laundering. According to EGBA data, an estimated €6.16 billion in gross gaming revenue was lost to the black market in the EU in 2022, representing a substantial share of the region’s total online gambling spend.

From a fiscal perspective, governments forfeit significant tax revenue when players migrate to unauthorized sites. This not only affects public finances but also weakens the resources available for social programmes designed to mitigate gambling harms. Moreover, the presence of unregulated competitors erodes trust in legal online gambling, impeding market channelization—the process of steering players toward licensed, safer options.

Strategically, the situation poses a significant obstacle to the EC’s digital policy ambitions. Without tiered, interoperable enforcement mechanisms and information-sharing, gaps persist that sophisticated criminal networks can continue to exploit.

Industry Context

The EGBA’s warning and the EC’s proactive response come amid a broader period of tightening gambling regulation across Europe. In recent years, countries such as the Netherlands and Germany have launched central self-exclusion registers and imposed stringent limits on advertising and staking. These efforts are partially designed to make the legal market less attractive to vulnerable groups while simultaneously making illicit sites less visible to consumers.

Despite these initiatives, enforcement against offshore operators remains uneven. Some jurisdictions, including Sweden and France, have adopted DNS- and payment-blocking tools to impede black-market access, but such measures can be circumvented with modest technical know-how. EGBA and other industry stakeholders argue that only with a unified, cross-border EU framework can authorities effectively disrupt the criminal networks that drive offshore gambling activity.

As legal markets become more restrictive—imposing lower limits on bonuses, advertising, and bet size—experts caution that the pull factors toward the black market may intensify if consumers perceive licensed offerings as less competitive. This dynamic reinforces the urgency of coordinated enforcement and transparent, evidence-based policy design.

Regulatory Background

The online gambling sector in the European Union is governed predominantly at the national level, with individual member states free to set their own regulatory and licensing requirements following the 2017 closure of the EC’s dedicated gambling infringement procedures. However, borderless digital platforms and the anonymity of cryptocurrencies complicate the reach of these laws, allowing offshore operators to remain accessible to European players.

Past attempts at EU-wide gambling regulation have faltered in the face of member states’ desire to retain control over gambling policy. The new EC action plan amounts to a renewed attempt to coordinate not just policy, but active enforcement against illicit actors—signaling a possible shift toward EU-level intervention not seen since the early 2010s.

What Happens Next

The European Commission’s action plan is currently in collaborative development with input from member states, industry bodies like EGBA, and other stakeholders. When finalized, it is expected to bolster information-sharing, set out best practices for blocking unauthorized sites, and improve cooperation between national regulatory authorities. The success of these measures will depend on member states’ willingness to harmonize aspects of gambling oversight and prioritize enforcement efforts against cross-border crime.

Sources

• SBC News

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