Italy’s illegal online gambling sector hits €20bn annually

Italy’s illegal online gambling sector is estimated to generate around €20bn in annual activity, according to new findings released by the Observatory on Illegal Online Gambling at Data Room Nexus. The report highlights the continued expansion of unlicensed gambling operations across digital channels and raises renewed concerns about the growing visibility of illegal operators on social media platforms.

The study paints a picture of a highly adaptive ecosystem where thousands of illegal gambling websites remain accessible to Italian consumers despite ongoing enforcement measures. Researchers estimate that approximately 4.5 million users in Italy interacted with illegal gambling services during the first quarter of 2026 alone. During that period, more than 13 million accesses to unlicensed gambling websites were reportedly recorded.

The figures are likely to intensify debate within Italy’s regulated gambling sector, where licensed operators and authorities have repeatedly warned that illegal competition continues to undermine consumer protection standards and regulatory oversight.

Illegal gambling networks continue to evolve

According to the Observatory, the illegal market has become increasingly decentralized over recent years. Rather than relying on a small number of dominant operators, the ecosystem now consists of a fragmented network of smaller websites and rapidly changing domains.

Researchers involved in the study said they monitored digital activity and online environments throughout the first quarter of the year. During that process, analysts identified an average of four to five new illegal domains appearing every day.

The report ultimately compiled a sample of 500 gambling websites and concluded that as many as 5,000 illegal gambling domains may operate in Italy over the course of a single year.

This constant turnover creates a significant challenge for regulators and enforcement agencies. When one website is blocked or removed, replacement domains often appear within hours or days. In many cases, operators launch so-called “mirror” or “twin” sites that replicate the same gambling products and user experience under a new web address.

Industry observers have noted that this tactic allows illegal operators to maintain customer continuity while avoiding long-term disruption. As a result, enforcement efforts that focus exclusively on domain blocking may struggle to produce lasting effects.

Social media emerges as a major distribution channel

One of the report’s most notable findings concerns the growing role of social media platforms in promoting illegal gambling services.

The Observatory identified Facebook, Instagram and TikTok among the main digital channels where illegal gambling advertising and promotional content continue to circulate. Researchers suggested that social platforms have become a critical gateway for directing traffic toward unlicensed operators.

Unlike traditional forms of online advertising, social media promotions often appear within familiar user environments. According to the report, this may reduce the perceived risk associated with illegal gambling services and create a stronger sense of credibility or legitimacy among users.

The study indicates that social media advertising can take multiple forms, including sponsored posts, influencer-style promotions, direct messaging campaigns and links shared through private communities or user-generated content.

Regulatory experts increasingly believe that illegal gambling operators are benefiting from the speed and scale of social media distribution systems. The ability to rapidly create new accounts, advertisements and promotional pages makes enforcement considerably more complex than traditional media monitoring.

The report also suggests that younger digital audiences may be particularly exposed to this type of content due to the structure of recommendation algorithms and targeted advertising systems used by major platforms.

Regulators shift attention toward platform responsibility

The findings have intensified discussion about the role online platforms should play in preventing the spread of illegal gambling promotions.

Giorgio Greppi, Director of Media Services and Protection of Fundamental Rights at AGCOM, stated:

“Illegal gambling advertising is not found in newspapers, radio or television. Everything has moved to social networks.’’

His comments reflect a broader regulatory transition taking place across Europe, where authorities are increasingly focusing on platform accountability rather than relying solely on traditional media oversight.

Greppi also referenced the European Union’s Digital Services Act, commonly known as the DSA, which entered into application in February 2024. The legislation introduced stricter obligations for large online platforms regarding illegal content, transparency and risk management.

According to Greppi, the DSA could become an important enforcement mechanism if applied consistently and effectively across the digital sector.

The legislation has been viewed by many European regulators as a potentially significant development because it expands expectations placed on technology platforms operating within EU jurisdictions. In theory, this could provide authorities with stronger tools to challenge illegal commercial activity including unlicensed gambling promotion.

ADM highlights international enforcement concerns

Luca Turchi of ADM, Italy’s Customs and Monopolies Agency, also commented on the growing challenge posed by illegal gambling networks.

Turchi reportedly acknowledged that the Digital Services Act may offer additional support in limiting illegal gambling exposure online. However, he also emphasized that the issue extends beyond national borders and cannot be solved through domestic action alone.

One of the main obstacles identified by regulators is the international nature of many gambling operations. Websites may be hosted in multiple jurisdictions while payment systems, advertising channels and user acquisition networks often operate across borders.

This creates enforcement complications for individual countries attempting to block or remove illegal services. Even when authorities take action against a domain, related infrastructure may remain active elsewhere.

As a result, experts increasingly argue that stronger cooperation between European regulators, digital platforms and international enforcement bodies will be necessary to reduce the long-term visibility of illegal gambling networks.

Pressure grows on licensed operators

The continued growth of illegal gambling activity also creates commercial pressure for licensed operators working within Italy’s regulated market.

Licensed gambling companies are required to comply with strict consumer protection standards, taxation rules and advertising limitations. Illegal operators, by contrast, typically avoid regulatory costs and oversight obligations.

This imbalance has become a major concern for legal operators that argue unlicensed competition damages the sustainability of regulated markets.

Industry representatives have repeatedly stated that illegal platforms may attract consumers by offering fewer restrictions, aggressive bonuses or easier registration processes. However, authorities warn that these services generally lack the consumer safeguards required within the regulated sector.

Consumer protection risks may include limited dispute resolution mechanisms, reduced protections against fraud, lack of responsible gambling controls and uncertain handling of customer funds or personal data.

Regulators have therefore continued to emphasize that the issue extends beyond lost tax revenue or market competition. Authorities argue that illegal gambling also represents a broader public policy concern tied to financial security, digital safety and responsible gambling standards.

Enforcement strategies may require broader coordination

The report from the Observatory on Illegal Online Gambling reinforces a challenge already facing many regulated European gambling markets. While blocking orders and administrative enforcement actions can reduce access to illegal websites temporarily, they often fail to eliminate the broader commercial ecosystem supporting those operations.

The rapid appearance of replacement domains demonstrates how low barriers to entry remain within the digital gambling environment. Operators can relaunch services quickly while continuing to target the same user base through advertising networks and social media promotion.

This means future enforcement efforts may increasingly depend on broader coordination between regulators, technology companies and cross-border institutions.

The Digital Services Act could become one of the most closely watched tools in this process. If implemented aggressively, the framework may increase pressure on major online platforms to identify and remove illegal gambling promotions more rapidly.

At the same time, observers caution that enforcement alone may not fully resolve the issue. Consumer awareness campaigns, stronger digital monitoring systems and closer international cooperation are also likely to play an important role in limiting the expansion of illegal gambling networks.

Conclusion

Italy’s estimated €20bn illegal online gambling market highlights the growing complexity of regulating digital gambling activity in an increasingly interconnected online environment. The latest findings from the Observatory on Illegal Online Gambling suggest that unlicensed operators continue to maintain significant visibility despite ongoing enforcement measures.

The report also demonstrates how social media platforms have become central to the distribution and promotion of illegal gambling services. As digital advertising systems evolve, regulators are being forced to shift attention toward platform accountability and cross-border cooperation.

For Italy’s regulated gambling sector, the challenge is no longer limited to blocking individual websites. Authorities now face a broader ecosystem built around rapidly changing domains, international infrastructure and large-scale digital promotion.

Whether new European regulatory frameworks such as the Digital Services Act can significantly reduce the reach of illegal operators remains uncertain. However, the findings make clear that future enforcement strategies will likely require coordinated action involving regulators, online platforms and international partners to address the long-term growth of the illegal online gambling market.

FAQs

What is the estimated size of Italy’s illegal online gambling market?
The Observatory on Illegal Online Gambling estimates that Italy’s illegal online gambling market is worth approximately €20bn annually.

How many users accessed illegal gambling websites in Italy?
The report estimates that around 4.5 million users engaged with illegal gambling platforms during the first quarter of 2026.

How many illegal gambling websites operate in Italy?
Researchers estimate that at least 5,000 illegal gambling websites may operate in Italy over the course of a year.

Which social media platforms were mentioned in the report?
The study identified Facebook, Instagram and TikTok as key platforms where illegal gambling promotions are circulating.

Why are illegal gambling websites difficult to block permanently?
Many operators quickly launch replacement or mirror websites after domains are blocked, allowing them to continue operating with minimal disruption.

What is the Digital Services Act?
The Digital Services Act is a European Union regulation designed to increase accountability for online platforms regarding illegal content and digital risks.

When did the Digital Services Act take effect?
The Digital Services Act entered into application across the European Union in February 2024.

Why are regulators concerned about social media gambling promotions?
Authorities believe social media advertising can make illegal gambling services appear more trustworthy and accessible to consumers.

What risks are associated with illegal gambling platforms?
Potential risks include reduced consumer protections, limited dispute resolution, weak responsible gambling controls and uncertain data security standards.

Why is international cooperation important in fighting illegal gambling?
Many illegal gambling networks operate across multiple jurisdictions, making cross-border coordination essential for effective enforcement.