SBC News

The battle against illegal gambling is becoming a global challenge as digital tech creates an environment for iGaming to prosper, according to Viktoriya Zakrevskaya, Founding Member and Deputy Chair of the Ukrainian Gambling Council (UGC).

Writing for SBCEurasia, she underpinned the importance of a comprehensive approach and flexibility in adapting to technological changes in the modern environment.

There are prevalent obstacles when it comes to detecting and subsequently tackling illegal sites, challenges only elevated by the prevalence of digital currencies in the offshore environment. As well as this, social media is tapped into to generate traffic.

She emphasised: “To counter these challenges, countries around the world are implementing innovative approaches that combine technological, regulatory, and social measures. In particular, Argentina is restricting access to gambling websites via public Wi-Fi networks.

“For this purpose, enhanced authorisation, identification, and verification [KYC – Know Your Customer] procedures are used, which require confirmation of age and identity before accessing platforms.

“Public Wi-Fi providers are required to block illegal websites using filters based on blacklists provided by the regulator. This approach reduces the accessibility of illegal platforms in public places, such as cafes or libraries, where minors are often present. The Argentine experience demonstrates the importance of cooperation between regulators and ISPs to limit access to illegal content.”

She pinpointed the efforts being made in Indonesia, where the government has undergone major efforts to strangle gambling market engagement.

At the heart of these efforts have been tapping into financial supervision tools, which blocked banking tools linked with the gambling market, which is illegal in Indonesia.

She continued: “In the United States, where gambling regulation is decentralised and depends on the laws of individual states, illegal websites are multiplying twice as fast as licensed ones [+64% vs. +36% as of 2024]. More than 80% of users see ads for illegal platforms, which often operate through offshore companies and use cryptocurrencies for transactions.

“To combat these challenges, the United States is working to regulate cryptocurrencies, impose restrictions on the use of offshore companies for the registration of gambling business organisers, and require IT giants to strengthen advertising moderation to limit the promotion of illegal sites in search engines and social networks. The US experience shows that the decentralised model of countering illegal gambling requires coordination at different levels: between the federal centre and the states; directly between the states; and between the federal centre, states, and IT companies.”

The regulator in Ukraine collaborates with Meta tackling Instagram accounts of bloggers who promote illegal online casinos through stories, showing fake “winnings” and leaving active links to banned sites.

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An independent report and audit detail that regulatory inconsistencies and fragmented enforcements have ceded the gambling market to unlicensed operators growing their scope in targeting Slovak consumers.

In Slovakia, questions are being raised about how effective the government is in tackling growing exposure to illegal gambling, which calls into question the policies enacted by the Valda (Parliament).

Concerns about the growing encroachment and engagement with black market operators have been raised by a damning audit from the Supreme Audit Office (SAO) and a detailed report published by the Institute for the Regulation of Gambling (IPRHH) an independent research agency on gambling.

Black Book of liabilities
Titled the Čierna kniha nelegálneho hazardu (Black Book of Illegal Gambling), by the IPRHH, its report presents the most comprehensive account yet of Slovakia’s growing vulnerability to illicit gambling.

Insights reveal a fragmented regulatory system that has failed to keep pace with a shadow industry that has gone digital with day-to-day engagements with national consumers.

The report identifies two key fronts: unlicensed online platforms and the growing infiltration of gambling mechanisms into mainstream digital culture. It estimates that the majority of illegal gambling activity in Slovakia now occurs online, facilitated by platforms that offer: Unlimited bet sizes, anonymous payments and zero identity verification.

The IPRHH describes this as gambling that has “moved from arcades into living rooms,” beyond the reach of any meaningful state control. The consequences are acute: minors, excluded players, and individuals receiving social assistance are all regularly able to access and spend money on these platforms.

Among youth aged 15–17, 31% reported having gambled online illegally, according to a 2023 IPSOS survey cited in the report. The findings further show that early exposure has lasting effects: individuals who began gambling before age 18 were four times more likely to develop gambling addiction and twice as likely to face debt collection before age 30.

The report also takes aim at so-called “loot boxes” embedded in video games — randomised digital rewards purchasable with real money. It labels them a “gateway drug to gambling,” particularly dangerous because of subtle integration into games popular with children.

Social media platforms add to the problem. Influencers are increasingly paid by offshore casinos to promote unlicensed platforms on TikTok, YouTube, and Twitch. These endorsements often depict gambling as glamorous, low-risk, and rewarding—distorting reality for young audiences. The IPRHH warns that these trends “erode the line between entertainment and exploitation.”

Technologically, the state is struggling to keep up. The report criticises the slow pace of enforcement and the overreliance on manual IP blocking. “The system is neither fast enough nor technologically capable to respond to the speed of illegal digital gambling,” the authors conclude.

Audit confirms the diagnosis
The SAO’s findings suggest that regulation is failing not because of bad policy, but because of non-enforcement. Between 2019 and 2025. URHH the Gambling Authority of Slovakia issued more than 600 fines — but allowed over 900 cases to expire without action, as deadlines lapsed. The root cause? Until recently, only one employee managed sanctions enforcement.

“It is not so clear why some received a fine of several thousand, and others avoided sanctions altogether,” admitted Ľubomír Andrassy, Head of the SAO. “There was no internal process. In many cases, the authority simply ran out of time.”

The audit also revealed a legislative loophole that allows gambling halls to continue operating for up to five years, even in municipalities that have banned them, if the local government fails to notify the regulator within five days. The SAO described this as “unreasonable and dysfunctional.”

Gambling is a lucrative business for the Slovak state. From 2018 to 2024, gambling contributed €1.8bn to the budget. Municipalities collected another €113m in licensing fees. In 2024 alone, online casinos generated €126m, up from less than €3m in 2019—largely due to the COVID-19 pandemic, which drove players online during the closure of land-based venues.

But this growth came without guardrails. The state “has no strategy to protect young people or addicts,” the SAO concluded. According to Lenčéš, “We are regulating the margins while ignoring the core problem. Without personnel, without tools, and without strategic direction, regulation becomes theatre.”

Dávid Lenčéš
Blunt enforcements
More than 54% of gambling activity in Slovakia now takes place online. Yet much of that occurs outside the bounds of the legal market. Illegal websites, often tailored for Slovak users with local language, support, and branding, offer frictionless access to high-stakes gambling without registration or restrictions.

Children can play. Addicts can relapse. And there are no limits, no age checks, and no oversight. According to the IPRHH, many platforms even simulate legitimate design features to lull players into a false sense of security.

“Regulated operators are held to high standards,” says Dávid Lenčéš, executive director of the IPRHH, “but that only works if unlicensed providers face real consequences. Right now, they don’t.”

These sites evade detection using VPNs, anonymous payments, and rapidly shifting web domains. Enforcement becomes a game of digital whack-a-mole that the state is losing.

ÚRHH focuses on blocking access to known illegal websites — through DNS filtering and cooperation with internet providers. But without more powerful tools, and with slow identification procedures, this tactic has proved insufficient.

“Blocking IPs is a blunt instrument,” says one analyst familiar with the enforcement framework. “The platforms adapt in hours. The regulators take weeks.”

Can regulatory incoherence be fixed?
At present, Slovakia’s gambling sector is increasingly characterised by contradictions. The government profits from legal gambling, while failing to contain its illegal cousin. It demands strict compliance from licensed firms, while tolerating systemic non-compliance from unlicensed ones.

The lesson from the IPRHH and SAO is sobering: it is not prohibition that fuels black markets, but regulatory incoherence. And unless Slovakia aligns its policy ambitions with the realities of the digital era, it may soon find that the market has already slipped beyond its reach.

The Greek government has stated its intent to eradicate illegal gambling (land-based and online), viewed as both an economic threat to the state and a societal danger to communities.

The Ministry of National Economy and Finance has been charged with drafting a new legislative framework to prosecute illegal gambling operators, with specific IT and data-driven measures to tackle illicit online gambling.

The mandate has been prioritised by Finance and Economy Minister, Kyriakos Pierrakakis, who told media that the government aims “to stop the loss of €1.6bn annually, including €500m in tax revenue.”

New Economic Threat
This pledge comes amid growing evidence that Greece’s black-market gambling sector has reached alarming levels. According to recent research by the Hellenic Gaming Supervision and Control Commission (EEEP) and Kapa Research, 800,000 Greek citizens — approximately 9.5% of the population, engaged in illegal gambling during 2024.

Among them, 390,000 gambled online, 215,000 did so at physical venues, and 194,000 used both channels. The average annual amount spent per player reached €1,934, and 28% of respondents reported gambling exclusively on unlicensed websites.

Most participants are men aged 25 to 44, though the research also found a troubling rise in gambling among students and young adults — prompting concern among social policy experts and health authorities.

Kyriakos Pierrakakis: Greece
Minister Pierrakakis said: “The numbers are shocking. This is not just a leak of public resources, but a deep social pathology. We are embarking on a determined effort to restructure the space with transparency, rigor and modern tools.”

The Ministry’s legislative package, set for public consultation in autumn 2025, is expected to introduce far-reaching structural reforms. These include the immediate closure of physical venues found facilitating illegal gambling, particularly internet cafés and private clubs.

Businesses proven to be complicit will face revocation of their operating licenses. Individuals obstructing regulatory inspections or enabling illicit activity will face criminal prosecution, including custodial sentences.

Focus on digital surveillance
To counter the digital dimension of the threat, the government will expand DNS filtering mechanisms to block access to unlicensed gambling platforms — over 11,000 of which have already been blacklisted.

A new real-time digital surveillance system, powered by artificial intelligence, will be introduced to identify suspicious activity. Authorities will also begin systematic cross-checking of user data, platform activity, and financial flows, with cooperation from the Bank of Greece.

Beyond enforcement, the government aims to promote prevention and legal alternatives. Public awareness campaigns will be launched to inform citizens of the risks, while self-exclusion tools will be made available for vulnerable individuals. The Ministry also plans to introduce tax incentives to support the legal gambling sector and encourage migration away from black-market platforms.

Hellas joint taskforce
In a significant development in July, the EEEP established a joint taskforce with the national police, the judiciary, and the financial intelligence unit to dismantle criminal gambling networks and prosecute offenders.

Spearheading what it described as a “collaborative approach,” the Commission has called for broader cooperation among government agencies, regulators, and public bodies to engage in unified action against illegal gambling.

Antonis Vartholomaios, President of the EEEP, stressed the importance of sustained institutional collaboration and long-term vigilance. “We are not dealing with isolated incidents, but with a deeply embedded and constantly evolving ecosystem of criminal activity,” he said.

“Our task is not simply enforcement, but building a resilient regulatory framework that can adapt to the digital age. This requires transparency, persistence, and inter-agency coordination — not as a one-time measure, but as a new standard of governance. We will not win this fight with legislation alone, but with unified commitment across the public sector.”

EU watches Greece’s early strike
The implications of Greece’s initiative are likely to be felt beyond its borders. With Poland assuming the Presidency of the Council of Europe in early 2025, it has already called for the European Union to explore the development of harmonised legislation and cross-border protections against black-market gambling and its ‘economic encroachment’.

Concerns and anxieties have been raised by regulators in the UK, Germany, and the Netherlands over the rapid growth of illicit online gambling — an issue fast becoming a shared regulatory dilemma across the European bloc.

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