Can Regulation Impede Illicit Gambling Operations?

At the ICE Barcelona event in 2026, experts convened to address the persistent challenge of illegal gambling and the effectiveness of current regulatory frameworks. The panel featured Ismail Vali of Gaming Compliance International, Erwin Van Lambaart from the European Casino Association, and Marta de Francisco, attorney with Asensi Abogados, alongside James Swann-Philips, a representative from iGB. The discussion centered around whether enhanced regulatory measures are curbing illicit gambling activities or potentially exacerbating the issue. With the scale of black market operations estimated at a staggering €80 billion annually across the EU, there is a significant fiscal impact with approximately €22 billion to €23 billion in lost tax revenue, as noted by Van Lambaart.

Impact of Regulations on Licensed Operators

The conversation turned towards the unintended consequences of stricter regulations. Van Lambaart and colleagues discussed how heightened taxes, more stringent product regulations, and advertising bans may not be reducing demand for gambling but are instead driving players towards illicit platforms. Legal operators, constrained by these rules, often find themselves at a competitive disadvantage compared to their unlicensed counterparts that disregard such regulations. The result is a structural advantage for illegal sites, allowing them to offer more attractive terms to potential gamblers. Illegal streaming surfaces as a significant tool for these unregulated operators, providing them a robust channel for acquiring new customers, while legal operators struggle to participate on a level playing field due to advertising restrictions.

Challenges in Enforcement and Market Dynamics

While the illegal gambling ecosystem leverages weak enforcement mechanisms, the panelists emphasized that simply enforcing existing rules is insufficient. Coordinated efforts are necessary, involving regulators, operators, vendors, and payment processors, to effectively tackle illegal gambling operations. Marta de Francisco highlighted the difficulties legal operators face due to stringent advertising limits, which hinder their ability to communicate safety and reliability, a position often freely exploited by offshore entities. "Legal operators just can do nothing, cannot compete with them," she emphasized, painting a picture of the regulatory imbalance that empowers illegal markets. The panel underscored the need for a comprehensive strategy that marries enforcement with collaboration among stakeholders to truly mitigate the appeal of illegal gambling markets.

Source: Source: "Can regulation stop illegal gambling?" at iGaming Business.