Italy’s Illegal Gambling Market Reaches €20 billion in Revenue Despite Enforcement

A parallel gambling economy is expanding inside Italy’s digital landscape. Estimated at €20 billion, the illegal online gambling market involves millions of active users and keeps growing despite sustained enforcement efforts.

The first report from the Data Room Nexus Observatory, presented in Rome, offers one of the clearest pictures yet. In the first three months of 2026 alone, more than 4.5 million Italians accessed unauthorised gambling platforms at least once, accumulating to over 13 million sessions. The research covered around 500 websites and focused largely on Instagram, which suggests the true scale is higher when accounting for other digital channels.

Advertising bans push gambling promotion into harder-to-monitor channels

Italy’s regulatory framework is among the strictest in Europe. Since 2018, the “Decreto Dignità” has banned all forms of gambling promotion linked to cash winnings, including sponsorships and social media advertising.

However, promotion has not disappeared. Instead, it has moved from public advertising channels to private networks, influencer content and less visible digital spaces. These environments are harder to regulate and easier to exploit.

The shift creates a structural imbalance. Restrictive legislations have pushed players towards poorly regulated channels, while illegal platforms operate faster than the compliance systems in place.

“When illegal content circulates on platforms perceived as trustworthy, it becomes increasingly difficult for ordinary users to distinguish between what is authorised and what is not,” said Isabella Rusciano, General Director of Data Room Nexus.

Mobile-first access driving scale and behavioural patterns

Illegal gambling in Italy is fundamentally driven by mobile traffic. More than 90% of traffic to these platforms comes through smartphones. This is because unlicensed operators ensure their sites are permanently accessible and frictionless.

A link shared in a private message or embedded in content can move a user from exposure to active participation almost instantly. There is no meaningful onboarding process and no compliance barrier.

User demographics closely mirror those in regulated markets. Around 78% of users are male, with nearly half under 35. The largest concentration sits between 25 and 34 years old. Activity peaks between midday and midnight, within afternoon and evening hours. 

No safeguards leaves users exposed to financial and behavioural risks

The difference between licensed and illegal platforms goes beyond their legal status. It is the complete absence of protective systems, which put unsuspecting players at-risk.

Illegal operators provide no guarantees around data security, fund management or dispute resolution. Players who lose funds or encounter issues have no structured recourse.

“The issue of responsible gambling becomes even more sensitive when discussing unregulated markets,” said Filippo Pucci, Scientific Director of Data Room Nexus. “The complete absence of controls significantly increases users’ exposure to risk.”

The broader economic effect is also significant. A €20 billion market operating outside official channels represents a direct loss of tax revenue and a diversion of capital away from regulated operators.

Enforcement struggles against a fragmented and resilient network

Italian authorities have increased enforcement activity, with more than 1,000 illegal gambling websites blocked in 2025. Replacement sites appear within hours, often using identical infrastructure. These “mirror sites” allow user accounts, wallets and data to persist across domains, meaning disruption is minimal.

Distribution channels have also shifted. Platforms like Instagram, YouTube, Telegram and WhatsApp now serve as primary entry points. Content, links, and promotional materials blend seamlessly with entertainment, making it difficult for users to distinguish organic material.

A more important shift is happening in user behaviour. Direct traffic is rising, but users are no longer arriving through ads alone. They are returning deliberately, using saved links or typing domains directly. This signals a transition from casual exposure to repeated engagement with illegal networks

Furthermore, the market itself is highly fragmented, comprising many small and mid-sized operators rather than a few dominant players. This makes enforcement more difficult because there is no central node to target. Activity simply redistributes across the network when pressure is applied.

Containing these platforms will require more than blocking sites. Authorities must develop legal and technological frameworks that evolve at the same speed as the ecosystem.

The illegal gambling industry has grown widely popular in Italy, generating up to $20 billion in revenue. Instead of protecting players, the strict legalisation has driven them to seek entertainment elsewhere. Therefore, authorities must implement measures to restrict activity on unlicensed platforms and access to their promotional materials.