Facts on regulation
Navigating Channelisation and Unlicensed Play: What Data Reveals about Europe’s iGaming Landscape
A data-driven analysis of shifting player behaviors, regulatory strategies, and market challenges for legal and unlicensed online gambling in the UK, Netherlands, and beyond.
Intro
Europe’s iGaming industry is entering a transformative phase that is reshaping every aspect of its operations — from regulation and technology to player engagement and market competition.While established markets such as the United Kingdom maintain strong levels of legal channelisation—keeping most play within licensed operators—others are managing rising VPN use and persistent unlicensed activity.
Heightened regulatory requirements, technical enforcement efforts, and the continuous adaptability of both users and offshore operators are reshaping the European online gambling landscape.
VPN Adoption and Market Trends: United Kingdom and Netherlands
United Kingdom
%
76% of UK adults are familiar with VPNs, and 17% of online gamblers use them to access gambling content
%
The UK’s unlicensed gambling market is valued at £2.5–£3 billion annually, around 2% of total wagering.
%
87–97%—continue to play through licensed operators
Netherlands
%
Around 9–12% of Dutch online gamblers use VPNs or proxy tools to bypass national restrictions, according to the 2025 WODC and VKN Participation in Gambling report.
%
The Netherlands’ unlicensed online gambling market is valued at about €617 million annually, roughly 51% of total wagering, slightly exceeding the €600 million generated by licensed operators — the first time unregulated play has surpassed legal activity.
%
49 % of players still use licensed sites
Enforcement Actions: Denmark and Germany
Denmark: Comprehensive Site Blocking
-
Policy and Scale: In June 2025, Denmark’s Frederiksberg court authorized the blocking of 178 gambling domains offering unlicensed services to Danish players—the largest case since 2012. The Danish Gambling Authority has now blocked more than 600 sites in total.
-
Method: Sites are identified according to language, currency, and advertising targeting Danish consumers. Court authorizations for internet service provider (ISP) blocking occur biannually.
-
Results and Limitations: Legal gambling revenue in Denmark increased by more than 20% year-on-year in early 2025, though the continued existence of mirror sites and VPN circumvention highlights the partial effectiveness of blocking measures alone.
Germany: Regulatory and Legal Constraints
-
Judicial Rulings: In March 2025, the German Administrative Court ruled that ISPs cannot be held responsible for preventing access to unlicensed gambling sites unless they directly manage the content. This decision limits certain enforcement powers under Germany’s State Treaty on Gambling.
-
Regulatory Adaptation: The GGL now relies primarily on host-based blocking, requesting removal from hosting providers and DNS-level takedowns. More than 930 domains had been subject to action by mid-2025, though the approach requires substantial administrative resources.
-
Ongoing Challenge: Black-market platforms remain accessible, and replacement domains often appear rapidly. Regulators emphasize the need for greater cooperation with hosting and payment intermediaries to ensure longer-term impact.
Understanding Player Behaviour
Motivations for Using Unlicensed Sites
Players seeking higher betting limits or avoiding stake and deposit caps sometimes turn to unlicensed sites.
Some users value privacy or anonymity, including those avoiding mandatory self-exclusion systems such as CRUKS.
User-experience concerns, including slower interfaces or limited promotions on licensed platforms, are occasionally cited.
The visual resemblance between licensed and unlicensed websites may also confuse inexperienced users.
Factors That Could Improve Channelisation
Balanced Taxation and Licensing: Moderate fiscal frameworks and clear consumer incentives appear correlated with stronger legal participation.
Enhanced Player Experience: Investments in usability, transparent communication, and prompt withdrawal processing can make licensed options more appealing.
Consumer Education: Clear information on licensing status and risk awareness supports informed decision-making.
Technological Coordination: Collaboration among regulators, payment entities, and search platforms can reduce access to illegal gambling content.
The Role of Digital Platforms
Search engines, payment services, hosting providers, influencer marketers, and ad networks all significantly influence the visibility and access to unlicensed gambling.
Operators increasingly rely on search engine optimization (SEO), paid advertising, and influencer promotions—often using offshore infrastructure—to reach European audiences.
Regulators in the UK, Netherlands, and other jurisdictions are expanding enforcement against paid ads and influencer content, engaging directly with major technology, media, and payment companies to curb illegal gambling marketing and integrate verified licensing data into systems for ad filtering and regulation.
Nevertheless, many unlicensed sites and promoters continue to operate from non-European jurisdictions, limiting enforcement reach and complicating efforts to maintain high channelisation levels.
Conclusion
VPN use and unlicensed gambling remain pressing regulatory challenges across Europe. The UK’s adaptive reforms continue to sustain high channelisation, while the Netherlands now faces record levels of unlicensed play following stricter advertising and deposit controls. Denmark’s proactive blocking policy demonstrates the benefits and limits of enforcement, and Germany’s legal rulings continue to constrain traditional blocking powers, driving experimentation with alternative oversight models.
At the same time, digital intermediaries—including search engines, payment providers, ad platforms, and influencer networks—play a growing role in shaping consumer access and visibility of unlicensed gambling content. Effective cooperation with these actors, under initiatives such as the EU’s Digital Services Act and TRIS harmonisation framework, has become essential.
Sustaining a high level of legal channelisation will now depend on balanced taxation, consistent advertising standards, cross-border regulatory alignment, and active collaboration with technology and marketing platforms. Maintaining both integrity and accessibility within Europe’s gambling ecosystem remains central to long‑term market stability and player protection.
European Perspective
“Europe’s regulated gambling model remains the global benchmark – a balance of innovation, consumer protection, and cross‑border oversight.”
— European Gaming and Betting Association (EGBA), 2025 statement
Further Reading
Monitoringsrapportage Najaar 2025: Marktontwikkeling en Illegaal Aanbod – Kansspelautoriteit (Netherlands Gambling Authority) An official 2025 report analyzing recent developments in the Dutch online gambling market, including shifts in legal and illegal participation rates.
Gambling Commission: Gambling behavior operator data, to march 2025
Danish Gambling authority: Danish Gambling Authority (Spillemyndigheden)
EXPLORE ARTICLE SERIES
European Gambling Regulation in Focus: A four part series
“Eurpoean gambling regulation in focus” is a focused series examining how evolving gambling policies are reshaping legal markets, player behaviour, and black-market dynamics. Drawing on data from the UK, the Netherlands, and across the EU market, it highlights the real-world impact of regulatory ambition on channelisation and market stability.
Article series
REGULATION
European Gambling Regulation in Focus: A four part series
