Leading experts presented current data and priorities for the gaming industry at BEGE 2025
Unlicensed operators are dominating the European online gambling market, according to the latest report from the analytics company Yield Sec, cited by European Gaming.
The study shows that unregulated platforms control 71% of the gross gambling yield (GGY) within the 27 EU member states, generating €80.6 billion out of a total of €114.3 billion. In comparison, licensed and regulated operators — subject to taxation and oversight — accounted for only €33.6 billion, or 29% of the market.
The Yield Sec report warns that the rapid growth of illegal platforms threatens not only the revenues of regulated operators but also government budgets and consumer safety. The data is striking — 81 million Europeans (or 18% of the EU population) have engaged with illegal gambling services over the past year.
Unregulated companies are increasingly using advanced digital tools to reach their audiences. They take advantage of crypto gambling, prediction markets, and platforms such as TikTok and Instagram, where they deceive users through fake reviews, bank logos, and deepfake videos featuring celebrities in fraudulent ad campaigns.
The financial losses for governments are substantial — according to Yield Sec’s estimates, EU countries lost around €20 billion in unpaid taxes in 2024. The report describes this as the “Jenga Tower effect” — a situation where stricter regulations on legal operators unintentionally strengthen the competitiveness of illegal ones.
Bulgaria’s Fight Against Illegal Gambling
Amid these worrying European trends, Bulgaria is actively countering the grey market. Over the past nine months, legal operators in the country have submitted dozens of reports to the National Revenue Agency (NRA) regarding illegal websites and online operators functioning without a license.
This proactive stance from the business sector demonstrates that Bulgaria’s regulated gambling industry is a committed partner of the state in combating illegal practices and protecting consumers. Meanwhile, the NRA and other competent authorities are intensifying online monitoring, identifying and blocking unlicensed domains, and working toward a more efficient mechanism for surveillance and sanctions.
The Bulgarian approach highlights that coordination between the state, the business sector, and technological partners is crucial for curbing illegal gambling. This synergy lies at the core of Yield Sec’s recommendations, which emphasize that a sustainable model requires collaboration between governments, regulators, and the industry to identify, restrict, and prevent illegal operators.
Despite the challenges, Bulgaria’s gaming industry demonstrates a strong commitment to transparency and consumer protection, positioning the country as one of the positive examples in the region.
The gaming industry is going through an extremely dynamic period – regulatory changes, technologies, new consumption patterns and stricter advertising and payment requirements are reshaping the market in real time. The Bulgarian sector remains a net contributor to the budget, but it is important that the decisions made create a predictable environment and competitive legal platforms in order to reduce the risk of illegal gambling growth. This was stated by Angel Iribozov, Chairman of the Board of Directors of the Association of the Gaming Industry in Bulgaria (AGIB) during the press conference on the occasion of the 16th edition of the Balkan Entertainment and Gaming Expo (BEGE) on November 26 at Inter Expo Center.
The topic of tax revenues from the gaming industry and the risk of the illegal market growth was touched upon with particular emphasis in Angel Iribozov’s speech, against the backdrop of a tense day in the parliament. The Budget Committee discussed Budget 2026, including the new tax framework for the sector and the idea to give out the State Totalizator to concession under more favorable conditions.
In this context, during a press conference at BEGE 2025, key data was presented on the state of the Bulgarian market, along with the priorities for 2026. This year, the forum brings together over 6,000 professionals from more than 60 countries, focusing on sustainable development, technological innovation and partnership with the regulator.
„The gaming industry in our country has a significant impact on the economy and contributes to the progress of various economic sectors. The revenues generated by the gaming industry into the State Budget of 2024 amount to BGN 503 million and nearly BGN 388 million for the period January 1 – September 30, 2025. The online segment continues to expand, with 26 organizers currently operating with a total of 53 active licenses, and stable growth is reported in state fees from the law. Meanwhile, the land-based network is marking a gradual decline in the number of sites and devices, accompanied by increased efficiency and accelerated digitalization,“ Iribozov summarized the big picture, referring to current data on the industry provided by the National Revenue Agency (NRA).
The importance of dialogue between the regulator and the industry, especially against the backdrop of the risk of black market growth, was emphasized by Joerg Hoffmann, senior partner at Melchers Law Firm (Germany) and one of the leading European specialists in gaming legislation, who was among the international experts who took part in the press conference.
„From a legal perspective, website blocking and payment restrictions have been proven to be effective measures to combat illegal platforms. When platforms and government regulators work together, they significantly hinder access to illegal sites and block financial flows, making the fight against illegal gambling much more successful,“ Hoffmann explained.
Part of the big discussion was also the topic of responsible gaming. „Self-exclusion programs and deposit limits are some of the most effective tools for responsible gaming. They not only help protect at-risk players, but also make the illegal market less attractive by offering safer options through licensed operators,“ said Pieter Remmers, General Secretary of the European Association for the Study of Gambling (EASG) and a globally recognized authority on responsible gaming.
“It is difficult to find the right balance between complying with strict anti-money laundering requirements and not overly restricting the markets. Regulators and operators must find a way to implement effective measures that do not lead to players switching to unlicensed operators, but at the same time comply with the law,” said Daniel Gambin, co-founder and CEO of Letzz, a company that is setting a new standard in anti-money laundering and regulatory compliance in the online gaming industry.
„Sustainable interaction between the state and the business is extremely important when it comes to the technology sector and the entertainment and gaming industry,“ confirmed Alexander Popov, director of the directorate for supervision of gambling activities at the NRA at the opening of the BEGE expo.
Rossi McKee, co-founder of Telematic Interactive Bulgaria AD, honorary Chairperson of AGIB and founder of the Responsible Gaming Foundation, gave an exceptionally inspiring start to the Eastern European Gaming Summit (EEGS). She delivered a unique and outstanding presentation covering the risk of excessive pressure on legal operators for the growth of the gray sector.
BEGE 2025 presented new product lines, platforms and solutions for regulated markets, while opening up a space for meetings between operators, suppliers, banks, investment funds and technology companies. The slogan of BEGE this year is Proximity to Potential, which reflects the vision that each connection and collaboration are important pieces of a larger puzzle that drive innovation and success in the industry.
