European Regulators Redefine Player Protection, Prioritizing Black Market Combat Alongside Responsible Gambling

European gambling regulators are signalling a notable shift in their approach to consumer protection, especially evident during major events like the recent FIFA World Cup. While safeguarding players within the licensed market remains paramount, there's an increasing emphasis on the substantial threat posed by illegal gambling operations.

A decade ago, messaging from regulatory bodies during major football tournaments primarily focused on the harms of excessive gambling, advertising concerns, and protecting vulnerable individuals from betting overindulgence. This year, however, a new narrative has emerged: a strong focus on alerting consumers to the dangers of unregulated operators.

Intertwined Objectives: Protection and Channelisation

This evolving perspective reflects a growing consensus that player protection and channelisation—keeping consumers within the regulated system—are intrinsically linked. According to Ismail Vali, president of Gaming Compliance International (GCI), the industry's understanding of risk has matured. "Player protection remains critically important, and that has not changed," Vali stated. "What has changed is the industry’s understanding of where many of the risks now exist."

Historically, discussions centered on licensed operators because their activities were visible and enforceable. Now, regulators are acknowledging the "systemic" threat from unlicensed entities. Vali elaborated, saying, "The regulated sector is the visible risk. Illegal gambling is increasingly the structural risk to marketplace outcomes." Tools like self-exclusion, affordability checks, and dispute resolution are ineffective if players simply migrate to unregulated sites.

National Strategies: France and the Netherlands

Jurisdictions like the Netherlands exemplify this integrated approach. The Dutch regulator, Kansspelautoriteit (KSA), has intensified supervision of both legal and illegal advertising. A KSA spokesperson described the legal and illegal markets as "communicating vessels," noting that while strengthening player protections, "it is likely some players will drift away from the legal to illegal offering." To counteract this, KSA stressed the necessity to "battle the illegal market even harder and more effectively." Despite this, KSA reiterated that "player protection is our number one priority."

Similarly, France's l’Autorité Nationale des Jeux (ANJ) has long prioritized channelisation, maintaining an impressive 85% channelisation rate through measures like website and payment blocking. ANJ highlighted its continuous efforts against illegal offerings, which it views as a perennial concern. For the World Cup, ANJ monitored marketing spend, collaborated with operators to limit promotions, and launched a dedicated responsible gambling campaign called "Zone à risques." The regulator acknowledged that technological advancements, such as the use of affiliates by illegal operators and the rise of prediction markets, have made unregulated gambling more accessible and harder to distinguish from legitimate options, reinforcing the need for concurrent anti-black market efforts and player protection.

The UK's Position and Industry Insights

In Britain, while the Betting and Gaming Council (BGC) raised concerns about unlicensed operators exploiting the tournament, the UK Gambling Commission (UKGC) maintained a more cautious stance. A spokesperson for the Commission indicated that early data did not suggest significant shifts in consumer behavior leading up to the World Cup, reiterating that both combating illegal gambling and ensuring consumer protection within the licensed market are equally important priorities.

Industry experts also weigh in on this evolution. Victoria Reed, chief executive of Better Change, suggests that regulated operators have significantly improved their consumer safety capabilities due to advanced technology and a growing number of safer gambling professionals. She argued that player protection has become deeply embedded in the daily operations of licensed businesses. Consequently, the rising focus on the black market stems from its complete lack of consumer safeguards, such as age verification, responsible gambling tools, or self-exclusion schemes, and its tendency to target vulnerable individuals who have self-excluded from regulated sites.

The Sophistication of Unlicensed Operations

The nature of illegal gambling has dramatically changed. Vali's research suggests that unregulated online gambling could generate a staggering $5.9 trillion in wagering value globally by 2025, with unregulated operators potentially accounting for 78% of global online gross gaming revenue—figures that remain subject to methodological debates. Crucially, these operators no longer rely solely on obscure offshore websites. They acquire and retain customers through a sophisticated array of digital channels, including search engines, social media, affiliates, messaging platforms, streaming services, mobile apps, AI-driven marketing, and crypto-enabled ecosystems. This shift compels regulators to think in terms of entire digital "ecosystems" rather than just individual operators.

A Broader Mandate for Future Regulation

Ultimately, the recent World Cup may be remembered for highlighting this pivotal evolution in regulatory thinking. Five years ago, the primary question for policymakers was whether licensed operators were adequately protecting consumers. Today, an additional, crucial question is being asked: Can consumer protection truly succeed if players abandon the regulated market entirely?

The emerging consensus across Europe suggests that player protection remains as vital as ever, but its success is increasingly tied to the ability to channel consumers into safe, regulated environments. The future challenge for regulators will extend beyond drafting new rules; it will involve assessing whether these interventions genuinely lead to safer marketplace outcomes. As Vali concluded, success should be measured by whether "the marketplace itself is becoming safer, more accountable and more channelised into the regulated sector over time." This holistic perspective is set to define gambling policy for the next decade.