EU online gambling fraud rises as EGBA urges coordinated action plan

The European Gaming and Betting Association has called on the European Commission to take decisive and coordinated action against a growing wave of online gambling fraud. The association submitted detailed evidence as part of a public consultation ahead of a planned European Union Action Plan on Fighting Online Fraud, expected in the second quarter of 2026.

The issue has gained urgency as fraudulent actors increasingly impersonate licensed gambling operators. These schemes are designed to exploit consumer trust in regulated environments, often leading to financial harm and exposure to unprotected gambling conditions. The submission highlights the need for a unified European response that addresses both enforcement gaps and cross-border challenges.

EU scrutiny turns to gambling-related fraud

European regulators are intensifying their focus on digital fraud across multiple sectors, with online gambling now emerging as a key area of concern. According to the EGBA, fraudulent practices in this sector have become more sophisticated and widespread, taking advantage of the fragmented regulatory landscape across EU member states.

The association’s submission outlines several common methods used by fraudsters. These include the creation of fake websites that closely resemble legitimate operators, as well as the distribution of illegal mobile applications through widely used platforms such as Google Play and Apple App Store. In many cases, these applications are presented as legitimate gambling services but operate without oversight or consumer protections.

Phishing campaigns have also become a prominent tactic. Fraudsters use emails, messages and social media posts that mimic trusted brands, encouraging users to share personal or financial information. Additionally, deceptive advertising on social media platforms often directs users to real-money gambling services hosted outside the EU, sometimes disguised as casual gaming experiences.

Consumer risks and lack of protection

The consequences for consumers can be severe. Unlike licensed operators that are required to implement safeguards, fraudulent platforms operate outside regulatory frameworks. This means users may not have access to essential protections such as self-exclusion tools, responsible gambling features or dispute resolution mechanisms.

The absence of these safeguards increases the risk of identity theft, financial loss and exposure to unsafe gambling practices. In regulated environments, players can voluntarily restrict their access to gambling services, a measure designed to support responsible behaviour. Fraudulent operators do not offer such options, leaving users vulnerable.

The EGBA also noted that enforcement efforts, while ongoing, often struggle to keep pace with the speed at which fraudulent entities reappear. Domains and applications that are taken down frequently resurface under new names or slightly altered formats. This cycle creates a persistent challenge for both regulators and legitimate operators.

Persistent enforcement challenges

Member companies within the EGBA have reported a recurring pattern in which fraudulent websites and apps quickly return after removal. Despite monitoring systems, takedown requests and cooperation with digital platforms, the effectiveness of current enforcement measures remains limited.

One of the core issues identified is the lack of coordination between national authorities. While individual countries have taken steps to combat online fraud, these efforts are often confined within national borders. Fraudsters exploit this fragmentation by operating across jurisdictions, making it difficult to track and shut down their activities permanently.

The association argues that a more integrated approach at the EU level would improve information sharing, streamline enforcement actions and create a stronger deterrent against illegal operators.

Illegal market pressure and economic impact

The rise in fraud is closely linked to the broader expansion of the unregulated online gambling market in Europe. According to the EGBA’s submission, offshore operators based outside the EU continue to target European consumers by falsely claiming to hold licences issued by EU jurisdictions.

These operators often misrepresent their regulatory status and design their platforms to appear compliant with European standards. In some cases, gambling products are deliberately presented as simple games, blurring the line between entertainment and real-money wagering.

The economic implications are significant. The EGBA estimates that illegal operators could account for approximately 27 percent of Europe’s total online gambling gross gaming revenue in 2025. This figure represents around €18 billion, a substantial share of the market that operates outside regulatory oversight.

Gross gaming revenue refers to the amount retained by operators after paying out winnings to players. When this revenue shifts դեպի unregulated channels, it not only increases consumer risk but also reduces tax contributions and undermines licensed businesses.

Call for coordinated EU-level action

In response to these challenges, the EGBA is advocating for a comprehensive and coordinated strategy at the European level. The association believes that only a unified approach can effectively address the cross-border nature of online fraud.

Dr Ekaterina Hartmann, Director of Legal and Regulatory Affairs at EGBA, emphasized the urgency of the situation. She stated:

“The evidence we’ve gathered shows how fraudsters are systematically exploiting the trust consumers place in the licensed gambling environment, putting European consumers at risk and allowing the illegal online gambling market to grow. From fake websites and fraudulent apps to phishing campaigns and social media scams, these threats reappear as quickly as they’re taken down. Fragmented national approaches to these types of fraud are not enough – we need coordinated EU-level action to ensure consumers and legitimate operators aren’t left fighting an uphill battle against fraud.”

Her remarks reflect a broader industry concern that current measures are insufficient to counter the scale and complexity of the problem.

The role of the European Commission

The European Commission is currently preparing its Action Plan on Fighting Online Fraud, which aims to strengthen cooperation between member states and enhance enforcement mechanisms across sectors. The inclusion of gambling-related fraud within this framework signals a recognition of its growing importance.

Potential measures could include improved coordination between national regulators, stronger obligations for digital platforms to monitor and remove fraudulent content and enhanced tools for identifying and tracking illegal operators. The plan may also encourage greater collaboration between public authorities and private sector stakeholders.

While the final details of the action plan remain under development, the EGBA’s submission is expected to contribute to shaping policy discussions and priorities.

Balancing innovation and regulation

The online gambling sector continues to evolve rapidly, driven by technological innovation and changing consumer behaviour. While this growth presents opportunities for licensed operators, it also creates new avenues for fraudulent activity.

Regulators face the challenge of balancing the promotion of a competitive digital market with the need to protect consumers. Effective regulation must adapt to emerging risks without stifling innovation or placing undue burdens on compliant businesses.

The EGBA has positioned itself as a partner in this process, offering industry insights and advocating for practical solutions that address both consumer protection and market integrity.

Conclusion

The rise of online gambling fraud in Europe highlights the complexities of regulating a digital and cross-border industry. As fraudulent actors continue to exploit gaps in enforcement and consumer awareness, the risks to individuals and legitimate businesses remain significant.

The European Gaming and Betting Association’s call for coordinated EU action reflects a growing consensus that fragmented national responses are no longer sufficient. A unified strategy, supported by robust enforcement and collaboration, will be essential to address the evolving threat landscape.

The European Commission’s forthcoming action plan represents an important opportunity to strengthen the regulatory framework and restore confidence in the online gambling environment. By prioritising consumer protection and cross-border cooperation, policymakers can take meaningful steps toward reducing fraud and supporting a safer digital economy.

FAQs

What is the main concern raised by EGBA?
The EGBA is concerned about increasing online gambling fraud that impersonates licensed operators and exposes consumers to risks.

What types of fraud are most common in this sector?
Common types include fake websites, illegal mobile apps, phishing campaigns and misleading social media advertisements.

Why are consumers at risk?
Consumers may lose money or personal data and lack access to protections such as self-exclusion tools.

What is the role of the European Commission?
The European Commission is developing an action plan to combat online fraud across sectors including gambling.

How do fraudulent apps reach users?
They are often distributed through popular platforms or promoted via deceptive online advertising.

What is gross gaming revenue?
It refers to the amount operators keep after paying out winnings to players.

How large is the illegal gambling market in Europe?
It is estimated to reach around €18 billion or 27 percent of total online gambling revenue in 2025.

Why is EU-level coordination important?
Fraudsters operate across borders making national enforcement efforts less effective.

What measures could be introduced?
Measures may include stronger enforcement cooperation better monitoring and quicker takedown of fraudulent content.

How can consumers protect themselves?
Consumers should verify licences use trusted platforms and avoid clicking on suspicious links or ads.