Illegal Gambling Gains Ground in Latvia as 30% of Players Turn to Unlicensed Sites

A new study by H2 Gambling Capital reveals that 30% of gamblers in Latvia use unlicensed online operators, either exclusively or alongside regulated platforms—indicating that for many, engaging with the black market is a deliberate choice rather than an accident.

According to the research, players are primarily drawn to illegal sites by more attractive conditions. Around 23% cited better odds, 20% pointed to higher bonuses, and 17% highlighted superior product offerings. Notably, 18% admitted they use offshore platforms to bypass the country’s self-exclusion register, while 8% said the absence of taxation on winnings influenced their decision.

Līga Līce, executive director of the Latvian Licensed Gambling Association, warned that excessive restrictions on licensed operators may be unintentionally strengthening the illegal market. She noted that nearly 80% of users of unlicensed platforms encounter their advertising on social media, making it difficult to curb the growth of the shadow economy. She also emphasized concerns that almost one in five players deliberately choose illegal sites to evade responsible gambling safeguards.

The study found that 76% of respondents had seen advertisements for illegal gambling platforms. Social media leads as the primary channel (41%), followed by affiliate and comparison websites (30%), and influencer-style content such as creator profiles and video promotions (30%), a format that is rapidly gaining traction.

In terms of discovery channels, 39% of players reported finding illegal sites through online search engines, while 20% were directed via social media ads. App stores and personal recommendations each accounted for 11%, with 8% coming from specialized affiliate partners.

H2 Gambling Capital also identified a vast ecosystem of unlicensed offerings accessible in Latvia, with more than 1,000 websites available. Of these, around 900 operate in English, over 250 in Russian, and only a small portion—24 sites—are in Latvian. The widespread use of mirror sites further complicates enforcement, as these platforms frequently change domains to avoid detection.

While some activity occurs on “skin betting” platforms, the majority of illegal operators focus on online casino products, underscoring the segment’s dominance within the offshore market.

This marks the second in-depth analysis of Latvia’s gambling sector conducted by H2 Gambling Capital in collaboration with the national licensed gambling association. The findings were presented this week to industry stakeholders and regulatory authorities, reinforcing concerns about the resilience and adaptability of the unregulated segment.