Rising taxes and tighter regulation across Europe are increasing pressure on the licensed iGaming sector, with industry figures warning that current policy risks driving players to the black market.

The issue was discussed on the iGaming Daily podcast, hosted by Charlie Horner, featuring Dan Phillips, CEO, Founder, Investor & NED offering Advisory/Fractional Services at NEL Advisory (iGaming consultants) and Arjan Korstjens, Principle at Casino Marketing Academy.

Both argued that without regulatory changes and stronger operator input, licensed markets will lose share over the next decade.

Korstjens pointed to tax levels as a key issue. “The UK with a 40% gaming tax online… it will drive everything directly to the black market,” he said, adding that the Netherlands is losing significant tax revenue to unlicensed operators.

Enforcement gaps remain a concern. Phillips said operators and B2B suppliers should play a larger role in identifying illegal sites. He highlighted geolocation tools and stricter VPN controls as key measures.

Korstjens added that targeting payment channels could have an immediate impact. Increased pressure on providers such as Mastercard to block transactions with unlicensed operators could significantly reduce black market activity.

The discussion also addressed changing player behaviour. Younger audiences are moving away from traditional slots towards faster formats such as crash games and bonus buys.

Phillips said many studios are still producing similar content that fails to engage these users. He called for a shift towards modular, AI-driven games that adapt to player behaviour.

Data sharing was highlighted as another barrier. Phillips noted that studios and aggregators hold detailed gameplay data but rarely share it with operators, limiting market insight and product development.

These issues will be explored further at the SBC Summit Malta, where Phillips and Korstjens will host a session focused on the sector’s long-term strategy.