Greece gets tough on illegal gambling
The Greek government has just declared war against illegal gambling. According to Finance and Economy Minister, Kyriakos Pierrakakis, Greece’s black market is estimated to be worth €1.6bn annually, "including €500m in tax revenue”.
Compared to some other countries, the Greeks are taking an especially tough and proactive approach to illegal gambling. In this article we’ll be exploring the state of illegal gambling in Greece, and looking at exactly what they plan to do about it.
What’s happening in Greece?
The illegal gambling sector in Greece is substantial, according to new research commissioned by the Hellenic Gaming Supervision and Control Commission (EEEP). It found that, in 2024, around 800,000 people (approx 9.5% of the adult population) engaged in illicit gambling.
Of these, 390,000 gambled online, 215,000 in physical venues, and 194,000 gambled both online and in person. Trends in the data also showed that more than a quarter of players only gambled illegally, and that a growing number of these were young adults
The average spend was estimated at almost €2,000 per player per year, which equates to significant lost tax revenues. However, the EEEP also highlighted other risks, including addiction, criminal exploitation, and the possibility of underage people gambling.
What are they going to do about it?
The Greek government is in the process of forming a task force with the aim of eliminating all forms of illegal gambling. This task force, consisting of regulators, police, lawmakers and financial intelligence units is central to the government's plan to tackle the black market.
To support it, changes to legislation are already in the pipeline. It’s expected that a new legal framework will be announced later this year allowing for the revocation of licences of non-compliant operators. Also, cafes and clubs found to be facilitating illegal gambling will be shut down on the spot.
Greek authorities are aware that this battle will be fought on several fronts, one of which is digital. They intend to expand their DNS filtering system, which already blocks 11,000 sites. AI-powered tools will be deployed to track suspicious activity, and financial checks will be carried out in cooperation with the Bank of Greece.
Additional public awareness campaigns and safer gambling tools will be used to bolster these efforts.
The Greek approach; pros and cons
These are big, bold moves, but the ambitious plan has both plusses and minuses:
Pros:
- A multi-member taskforce means better communication and cooperation, helping to streamline anti-illegal gambling efforts.
- The use of modern technologies, such as real-time AI analysis, is cutting-edge stuff, and may set a precedent that is ultimately useful to other regulators.
- A strict crackdown on all forms of gambling (online and in person) at the same time can prevent illegal gamblers from simply moving to different illegal operators.
- Additional public awareness and safer gambling tools may, to an extent, help to starve illegal operators of business.
- Tax incentives for legal operators should help level the playing field, and seems like something other countries could learn from.
Cons:
- A heavy-handed approach could provoke a backlash, or drive illegal gamblers further underground, where the dangers may be even greater.
- Concerns about privacy in regard to the use of real-time AI monitoring and financial background checks (similar to those expressed in the UK).
- Full coordination with the EU will be necessary to prevent international illegal operators from benefiting.
- A large and multifaceted taskforce could consume available resources, especially to begin with.
It’s not only Greece
The rise of illegal gambling is a global phenomenon. Many governments and their regulators are feeling the pressure in different ways, and they’re responding with quite different strategies.
The Netherlands, for instance, is struggling with black market management. The Netherlands Gambling Authority (KSA) found that around 25% of Dutch gamblers are using illegal sites, and that problem gambling rates are on the rise. To make matters worse, gambling tax revenues have taken a big hit.
In Belgium, Germany and the UK, similar patterns can be seen, and more stringent regulation doesn’t seemed to have helped. In fact, many new regulations intended to protect players actually seem to worsen the problem, driving more players towards illegal operators.
Elsewhere, a brutal situation has been unfolding in Brazil. Carried out by heavy-handed police, Operation Desfortuna sought to reduce the number of players being directed to illegal sites by arresting social media influencers.
Indonesia is currently in the process of a clampdown on illegal gambling that resembles the Greek plan in some ways, involving both AI surveillance and the formation of a taskforce.
It seems that no regulator has managed to find an effective and balanced strategy for dealing with illegal gambling. For this reason, there will be many eyes on Greece’s forthcoming operations.
Why is this happening?
There's no doubt that illegal gambling is on the rise worldwide, and there appear to be several main reasons why. Black market platforms offer things that players can’t always get elsewhere, such as:
- Fewer stake restrictions
- Access to bonus buy features
- Little or no potentially invasive background checks.
For some, including self-excluded and underage players, these sites may be easier to access than their legitimate cousins. Illegal sites can sometimes even offer more competitive payouts and bonuses due to not having to pay the same (or sometimes any) taxes. This raises the question of whether overregulation may be fuelling the fire of illegal gambling.
Overregulation to blame?
In recent years, regulators around the world have introduced strict new rules about what operators can offer players.
British and German regulators have brought in stake limits which prevent players from wagering more than a certain amount per-spin.
Monthly deposit limits have been introduced in Germany, The Netherlands and Belgium, restricting how much players can pay into their account.
Background and financial affordability checks, criticised by many, are being used in the UK, The Netherlands and Switzerland.
Any one of these things, let alone combinations of them, could easily drive players to illegal platforms. Although well-meaning, it seems that many regulators are acting clumsily and without much consideration for patterns seen elsewhere.
Higher tax rates for the industry
Increased financial pressure on legal operators, including from rising taxes, serve to worsen the situation for the operators, but also for players.
With profit margins under attack, many operators will be tempted to cut back on bonuses and promotions, reducing RTP (return to player) rates, and offering more limited game selections. All of these factors make illegal alternatives more appealing, and legitimate businesses both less attractive and viable.
Players need to be able to trust and respect the regulated market, and that’s becoming harder and harder to achieve. Most importantly, casino offerings in the regulated market need to appeal to players.
Implications
For the wider industry, Greece’s new approach marks a shift toward tougher enforcement, setting a precedent that other European regulators may follow, or avoid.
For legitimate operators and developers in Greece, the move is likely to be welcomed. Tax incentives will help to make legal operations more viable, and other efforts should eliminate some of the competition. On the other hand, implementing surveillance systems could prove costly.
For players, the value of bonuses might take a hit, but this will ultimately be offset by the benefits of a safe, regulated and compliant gambling market. But players need to know, and be reminded, that the regulated sector is a safer place to play.
If the measures succeed, the Greek government will be one of the biggest benefactors, and no doubt, glad to claw back its share of lost revenues.
Internationally, many regulators will be crossing their fingers that the Greek approach teaches them something they can apply themselves.
Final words
Hopefully, Greek regulators aren't falling into the same trap as other European regulators by introducing drastic new measures. Several countries have made rash changes, and these, as we’ve seen, can easily worsen the situation.
Regulators need to learn from each other’s successes and mistakes. Whether Greece’s plan works or not, we can at least expect to learn something.
Will Greece’s attempts to curb the rise of illegal gambling pay off? Or will they drive more players into the arms of the thriving black market casino operators? Watch this space.