Europe’s Gambling Market Faces Regulatory Divide as Inequality Fuels Conflict

Europe’s gambling market is increasingly becoming a battleground shaped by regulatory inequality. Governments continue to shield state lotteries and horse racing under the label of “national cultural heritage,” granting them tax advantages and exemptions from key restrictions. Meanwhile, private operators face heavier taxation, stricter compliance requirements, and what many describe as discriminatory policies.

The situation in each country

This imbalance is intensifying tensions across key markets. In Sweden and the United Kingdom, racetrack associations are lobbying for even higher taxes on online casinos, citing the historically privileged role of horse racing. Private sector stakeholders warn that such selective regulation risks undermining the legal market, ultimately driving players toward unlicensed and offshore platforms.

France illustrates a more entrenched, monopolistic dynamic. FDJ United, evolved from the national lottery, has expanded aggressively through acquisitions, drawing criticism over the creation of an artificial market dominance. At the same time, land-based casino operators continue to resist the legalization of online casinos, arguing it would threaten jobs and reduce revenues.

Belgium, by contrast, has taken a legal approach to addressing the imbalance. The Constitutional Court recently ruled that tax exemptions granted to the National Lottery are discriminatory. The court noted that its mobile applications—offering jackpots, bonuses, and gamified features—are virtually indistinguishable from private online casino products. Lawmakers are now required to resolve this contradiction by the end of 2026.

The long-standing division between “traditional” gambling (lotteries and horse racing) and “modern” segments (online casinos) is increasingly outdated. Technological convergence has blurred these lines, exposing inconsistencies in regulation: similar products present similar risks to players, yet operate under entirely different legal frameworks.

As a result, inequality continues to fuel the growth of the black market. High tax burdens push users away from regulated platforms, monopolistic structures hinder innovation, and legal disputes across jurisdictions are on the rise.

Ukraine now faces a critical opportunity to avoid repeating Europe’s mistakes. The country’s recent lottery licensing has already generated 72 million UAH, with further development planned through a centralized SOMS database. Lessons from Europe suggest that granting artificial privileges to select segments leads to instability rather than sustainable growth.

A unified regulatory approach—based on consistent taxation, standardized compliance, and advanced digital monitoring—could create a level playing field. Such a system would allow businesses to scale, enable governments to maintain oversight, and ensure stronger consumer protection. In a converging market, the future of gambling regulation will depend on equal rules where competition is driven by quality, not historical advantage.