European Union Intensifies Fight Against Illegal Gambling and Strengthens Player Protection

The European gambling industry continues to grow rapidly, generating billions of euros in annual revenue. However, this growth has also fueled the rise of the illegal gambling sector, which poses significant risks to player safety — particularly for minors. In response, the European Union (EU) is implementing new regulatory initiatives, leveraging technological solutions, and enhancing cooperation with global IT companies to curb illegal gambling and protect vulnerable players.

Protecting Minors Through Stricter KYC Requirements

One of the EU’s top priorities is safeguarding minors from gambling harm, especially as online platforms become more accessible through digital technologies. The upcoming EU-wide regulations will require iGaming operators to implement full Know Your Customer (KYC) verification systems. These will use biometric data, electronic signatures, or government database checks to verify user age and block underage gambling.

In the UK, the Gambling Commission already enforces two-factor verification for online casinos. Additionally, “loot boxes” — randomized in-game rewards often seen in video games — are being closely regulated due to their potential to attract children. The EU is moving toward banning loot boxes for minors and restricting microtransactions that could encourage underage play. The new rules will also prohibit influencers and content creators from promoting gambling platforms on social media if their audience includes minors.

Toward a Unified EU Digital Identity

Looking ahead, the EU plans to integrate age verification into the EU Digital Identity Wallet, a single digital identifier for online services. This initiative aims to streamline verification processes across multiple industries, including gambling, social media, and financial services.

National Efforts to Tackle Illegal Gambling

Member states are also taking action to fight the shadow gambling market. In Greece, where the gambling sector generated over €2 billion in 2024, the Ministry of National Economy and Finance is rolling out an AI-powered monitoring system. This system analyzes traffic, domains, and transactions to detect and block offshore illegal gambling sites. The Bank of Greece is coordinating with major payment providers like Visa and PayPal to block financial transactions linked to unlicensed operators.

Similarly, Ukraine has launched a state-owned PlayCity system to identify and shut down illegal online casinos. The platform can detect mirror sites, check the legal status of casinos, allow users to report illicit operators, and file complaints against internet service providers that fail to block banned sites.

Continuous Collaboration is Key

The rapid evolution of digital technology brings both opportunities and risks. The EU stresses that only ongoing cooperation between national regulators, lawmakers, and technology providers will ensure effective measures against illegal gambling — protecting players, especially minors, across the continent.