Spain Loses €231M/Year to Illegal Online Gambling Market

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Spain Loses €231M/Year to Illegal Online Gambling Market

A new report prepared by Jdigital and EY reveals the real scale of illegal online gambling in Spain and warns about a phenomenon that grows silently despite the strict state regulatory framework. According to the study, 23.4% of Spanish players have used unregulated platforms in the last 12 months, either knowingly or unknowingly. This activity already moves around €231 million annually, equivalent to 16% of the regulated market value.

Massive misinformation: almost half believe they play legally… but they do not

One of the most worrying findings of the report is the level of confusion among users. 47.5% of those who claim to play only on legal platforms actually use .com, .io, or .bet domains, which means they are interacting with unlicensed operators without knowing it.

Since 2011, Spanish regulations require that every legal platform use a “.es” domain and display the official Safe Gambling seal. However, illegal operators have perfected the graphic and technical imitation of regulated sites, making it difficult for the average player to distinguish them.

Why illegal gambling grows: aggressive bonuses, fewer limits, and recruitment on social networks

Players identify three main incentives to migrate to unlicensed platforms:

While the regulated market operates under strong advertising restrictions and strict player protection limits, illegal operators have no brakes and manage to attract users especially through social networks, a space where state control is very limited. YouTube, TikTok, and Instagram concentrate 38% of accesses to illegal platforms among medium-high spending users. Telegram appears as the emerging channel among higher-spending players.

Youth, the most exposed

The 18 to 24 age group is the one that least distinguishes a legal operator from an illegal one, and at the same time is the group that most uses unlicensed platforms (16.1%). This disconnect between perception and risk increases vulnerability to scams, gambling addiction, and loss of basic consumer rights.

A European problem replicated in Spain

The phenomenon is not exclusive to the country. In 2024, 71% of online gambling in the European Union was conducted outside regulated channels. In markets like Eastern Europe, this percentage even exceeds 80%. In France, where online casinos are prohibited, it is estimated that almost half of the market operates clandestinely.

Spain replicates this pattern: the more restrictive the regulation and the more limited the legal offer, the greater the space gained by the illegal market.

High-spending players are the ones who most abandon the legal market

Low and medium spending users maintain high channeling levels (above 80%). However, in the highest spending brackets, leakage grows considerably: among those who spend between €800 and €1,000 monthly, one in four already uses illegal platforms. This segment represents more than 60% of the total estimated value of the illegal market.

Over-regulation could be accelerating the problem

The report points out that the Royal Decrees on advertising and responsible gambling, although necessary, have significantly reduced the visibility of regulated operators and restricted their ability to compete. The result is that many users find in the illegal market a broader, more accessible, and less limited offer.

Limiting the legal offer does not eliminate demand: it simply displaces it toward operators without control, without financial traceability, and without protection mechanisms.

What’s coming: joint limits and a new national risk detection system

The DGOJ is working on two key measures:

  1. A joint deposit limit per player, applicable to all their accounts on legal operators.
  2. There is concern about the unintended effect that those who exceed this limit automatically migrate to the illegal market.
  3. A mandatory state algorithm to detect risk behaviors, based on real microdata from diagnosed players. It is expected to improve detection and standardize criteria among operators.

You can access the full report here: Illegal Online Gambling in Spain – 2025 Report

Tags: Spain, illegal gambling Spain, illegal betting Spain, Illegal Online Gambling in Spain – 2025 Report