Bulgaria & Sweden are frontrunners in closing down illegal casinos, but is the EU doing enough to combat illegal iGaming?
The war on illegal online casinos is escalating in Europe. Sweden and Bulgaria are among the countries closing down unlicensed gambling websites.
Thousands of illegal casinos are eyeing players in Europe, and governments are pushing for stricter laws to protect customers and simultaneously encourage more business in the licensed sector.
Experts say these sites will continue flourishing without unified action throughout the EU. While current gambling regulations in Bulgaria are clamping down on its iGaming laws and Sweden intends to revise its Gambling Act, other nations will likely follow suit .
Bulgaria sounds the alarm on illegal casinos
Bulgaria has been firm in its approach to unlicensed casinos , recognising the drastic increase in illegal online gambling. According to Bulgaria's National Gambling Regulator (NRA), there are more than 5,100 operational illegal gambling websites , easily surpassing the number of the nation's 25 licensed operators.
At a news conference, Bulgarian Socialist Party (BSP) member Rumen Petkov called for an EU-wide database to track these illicit websites . Petkov warned that the uncontrolled expansion of online gambling websites is not just about money but also a social issue.
"First, there's an encroachment on the health, finances, and well-being of entire generations and entire families," he added.
He criticised the EU for not having a single register of unlicensed online casino sites that regulatory bodies can use as a database, which he argues is “the prerequisite for the development of illegal online gambling on the territory of the entire continent.”
Bulgaria took action by closing over 2,500 illegal sites last year. Nevertheless, the authorities believe that these sites will continue to emerge under new names and domains without a more robust European commitment .
Sweden pushes for stricter gambling regulations
Sweden will also be tightening its gaming laws. The Swedish Trade Association for Online Gambling (BOS) urges the government to close a loophole in Sweden's Gambling Act that allows unlicensed casinos to target its players.
Under current law and Swedish gambling regulations , only unlicensed casinos advertising in Swedish or taking SEK payments are illegal, enabling offshore gambling operators to continue to accept Swedish players without using the local language or currency. BOS is calling for a change to make all unlicensed gambling illegal , not merely based on language or payment.
BOS Secretary General Gustaf Hoffstedt urges the government to revisit the original proposal to make all unregulated gambling illegal, stating:
“Unlicensed gambling should be eliminated in Sweden. It is completely inadequate that around a quarter of all gambling is unlicensed, not least given the total absence of consumer protection on the black gambling market.”
The authorities are optimistic that the new rules will persuade more individuals choosing Swedish online casinos to gamble through legal, regulated means . Approximately 25% of Sweden's gambling industry is presently illegal, exposing players to exploitation and abuse.
The EU's role in combating unlicensed casinos
Despite Bulgaria and Sweden's move, the European Union has yet to develop a collective stance on combating unlicensed online casinos. Each nation regulates its own gambling, resulting in varying enforcement. The system is patchwork in nature , enabling unlicensed operators to shift from one jurisdiction to another.
“If we are to succeed in eliminating this part of the gambling market, the Gambling Act must be amended, and all unlicensed gambling must be criminalised,” BOS’s Gustaf Hoffstedt aptly stated.
An EU-wide effort, though, would entail one register of illegal gambling sites, more enforcement against illegal operators , and greater cross-border cooperation among regulators. Without that, illegal casinos will keep exploiting legal loopholes and not be held accountable for their actions.
What's next for the European gambling industry?
With Sweden and Bulgaria leading the way, other EU nations may soon alter their approach to gambling legislation . Online gambling is more accessible than ever for gamblers to play in unlicensed casinos, and governments must take action to educate players on how to gamble responsibly .
As more countries recognise the dangers of unregulated internet gambling—ranging from money laundering to addiction—calls for stricter legislation will surely grow louder.
Whether or not the EU will step in with a uniform solution is unknown, but currently, member states are acting alone.