Europe Steps Up Gambling Market Reforms to Tackle Illegal Operators

While total bans on advertising or strict access limitations were once seen as straightforward solutions to complex issues, many European jurisdictions now view such measures as ineffective. Instead, they are turning to more nuanced and comprehensive regulatory strategies.

Undoubtedly, the revision of gambling regulatory policy is currently one of the most popular trends in many developed European jurisdictions. This approach is based on a simple but extremely effective concept: a transparent market with clear rules of the game, government control, taxation and consumer protection can curb the development of the shadow segment. Conversely, too strict restrictions or bans often encourage gambling organisers to resort to shadow schemes, which creates favourable conditions for the development of the illegal segment.

Here are a few recent examples that clearly demonstrate the movement towards revision of gambling regulatory policies in economically developed European countries.

Italy has finally decided to revise the "Decree of Dignity" - the law that has completely banned gambling advertising and any sponsorship, including sports events, by the gambling business since 2018. Adopted under pressure from the populist party Lega-5 Stelle, this document not only failed to solve the problems associated with gambling, but also created favourable conditions for the development of the illegal market.

Over the past seven years, it has become clear that despite the lack of advertising, players have not stopped gambling. Instead, they have become more likely to use illegal gambling facilities and online platforms. The result is losses for the budget, an increased risk of gamblers developing gambling addiction and a serious reduction in funding for sports. Having fully experienced these negative consequences, Italy is now preparing for a profound reform: the abolition of ineffective restrictions, the introduction of clear and flexible rules that will allow the legal market to develop.

Another example is Croatia. The government of this Balkan country has enlisted the support of the public in reforming gambling legislation. The key innovations include the creation of a single regulator, a new system of taxation for online casinos and betting, and stricter control over compliance with player protection standards. The draft law is likely to be adopted this autumn, and the launch of the updated system is scheduled for 2026.

Ireland is also an interesting example of the revision of the gambling regulatory policy. Starting from 4 March 2025, regulation will be transferred to a new body - GRAI (Gambling Regulatory Authority of Ireland), which will start issuing licences in several stages. First, B2C companies will receive them, then B2B, and lastly, non-profit organisations that deal with gambling. The new regulator will pay special attention to transparency: to obtain a licence, the organiser must disclose the full ownership structure, and any changes in activities must be recorded and reported to the regulator.

These examples confirm the obvious: a regulated legal gambling market creates more opportunities for everyone - the state, businesses and players. Most European countries are moving away from the perception of the gambling industry as an "evil" that needs to be eradicated. Instead, they are choosing the path of control, development, and accountability. This is something we in Ukraine should learn from and something the new national gambling regulator should pay attention to. This approach will help strike a balance between freedom for business and the state's desire to control such a socially sensitive area as gambling.