Can Big Tech and banks dry up Europe's illegal market?

Anders Dorph, head of the Danish regulator Spillemyndigheden, said the licensed market share of 93 percent, a figure the country had long taken pride in, is no longer accurate. Dorph, who said improved measurement methods play a part in this, added that the country is not immune to a shift toward the illegal market.

Since H2 Gambling Capital began counting traffic to crypto casinos and affiliate sites about 18 months ago, the share of licensed firms has been estimated at 78 percent. The regulator's web traffic measurement shows 82 percent. A survey by Spillemyndigheden found that only 6 to 7 percent of Danish players use illegal sites. Dorph said this group consists of heavy players and that serious action needs to be taken.

According to Dorph, the main target is platforms. Illegal betting ads are invisible on television but are everywhere on social media. Ads that regulators have had removed are not enough, and only platforms can carry out filtering at scale. The Danish regulator met with Meta in May and pressure is continuing for a new meeting. Talks have also been held with Google. Dorph admitted that progress has been slow.

On the payments side, banks say blocking gambling transactions is difficult and expensive. Dorph believes that even blocking 10 percent of revenue would leave illegal operators at risk of being unable to receive payments.

In the Netherlands, VNLOK, the trade association of licensed operators, has taken Meta to court, accusing it of violating the EU's Digital Services Act by failing to stop illegal operator ads on Facebook and Instagram.