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The illegal gambling black market continues to pose a significant challenge across the globe, with its reach and complexity becoming increasingly apparent. In several regions, including the US and Germany, the black market has grown to substantial proportions, fueled significantly by illegal sports streaming.
**The Size and Scope of the Black Market**
In Germany, the illegal gambling market is estimated to be worth around €500–600 million (approximately £429–515 million), accounting for about 3–4% of the total legal gambling market and 25% of the high-risk online gambling market such as sports betting and virtual slots. Despite regulatory efforts to combat the issue, the market remains resilient, with around 858 illegal German-language gambling sites operated by 212 operators detected in 2024.
In Brazil, despite the launch of a regulated market in January 2025, research indicates that 73% of Brazilian bettors continue to use illegal, unlicensed gambling sites, signaling a strong persistence of the black market there.
In the US, the illegal online gambling market is valued at an estimated $67 billion, with illegal sports streams playing a central role in promoting and funneling users towards unlicensed gambling platforms.
**The Role of Illegal Sports Streams**
In the US alone in 2024, more than 4.2 billion illegal streams of sports events (streams over 90 seconds) were accessed, with 82% of those streams promoting illegal online gambling sites. Major sporting events like the NBA Finals and FIFA Club World Cup drive peaks in illegal streaming. These illegal streams not only promote unlicensed gambling but also often put viewers at risk, with 84% of illegal stream views containing malware, spyware, or keystroke loggers.
**Enforcement and Regulatory Efforts**
German authorities have increased enforcement actions, undertaking 231 prohibition proceedings in 2024 (up from 133 in 2023), and plan to expand advertising monitoring and collaboration with international agencies to curb illegal gambling. Despite these efforts, industry stakeholders note a persistent structural problem in the market.
The German regulator aims to make illegal operations unattractive through comprehensive measures targeting providers and their support networks, but acknowledges combating illegal gambling as a long-term strategic undertaking.
In the UK, the Gambling Commission fined Taichi Tech Limited, trading as Fafabet, £170,000 over unfair terms and conditions and failure to intervene in cases of potential gambling-related harm.
As the battle against the illegal gambling black market continues, the importance of collaboration between regulatory bodies, industry stakeholders, and technology providers becomes increasingly clear. Innovative solutions and strategic approaches will be crucial in addressing this complex and ever-evolving issue.
- Online casinos and sports betting continue to thrive in the illegal gambling market, with the US market worth an estimated $67 billion, fueled partly by the illegal streaming of sports events.
- In Germany, among casino games like virtual slots, sports betting in unlicensed casinos accounts for 25% of the high-risk online gambling market, despite regulatory efforts.
- The illegal gambling market, including sports betting and casino games, remains resilient in several regions, with around 858 illegal German-language sites operated by 212 casino operators detected in 2024.
- As the battle against the black market intensifies, collaboration between regulatory bodies, industry stakeholders, and technology providers will be essential, using innovative solutions to combat this long-term strategic challenge.
