Europe’s iGaming sector has warned that rising duties are driving players to the black market, weakening channelisation and long-term tax returns.
The issue was discussed on the latest iGaming Daily podcast, hosted by Martyn Elliott, with analysis from Ted Menmuir and Joe Streeter. The trio pointed to recent increases in the UK and the Netherlands as key examples of a wider “tax contagion” trend.
The three argued that higher taxes are failing to improve player protection. Instead, they are pushing users toward unregulated sites that operate without safeguards or oversight.
Menmuir warned: “These are criminal gangs… they want to wipe out the customer, take his savings, take his overdraft and put him in debt.”
Technology is adding pressure. AI is helping operators, but also enabling fraud. Automated bot attacks are now easier to deploy, forcing compliance teams to filter large volumes of low-level threats.
Streeter said user experience is another driver. Black market sites avoid KYC checks and offer faster onboarding, while regulated operators face stricter requirements. Elliott noted he recently accessed an unlicensed site that required only a date of birth.
The three expects no reversal of tax policy. Instead, focus is shifting to enforcement. Suggested measures include cross-border payment blocking and stronger European coordination against illegal operators.
Estonia was highlighted as an exception. The country has reduced gambling tax after industry consultation, aiming to improve competitiveness and channelisation.
