European Lotteries: illegal market threatens lottery model
Answering SiGMA News’s questions, The European Lotteries (EL), the Brussels-based umbrella body representing national lotteries across Europe, presented its latest annual figures as evidence of the sector’s public value, while also linking the future of the regulated lottery model to the fight against illegal online gambling.
EL members returned a record €29.4bn to society in 2024, the highest figure ever recorded by the European lottery sector. The association’s annual report says the money came from 67 reporting members across 37 countries, with total sales of €109.9bn and gross gaming revenue of €46.1bn. More than 62 per cent of GGR was returned to society, supporting sport, culture, education, health, social initiatives and public budgets, EL reported.
European governments are under pressure to fund public services while also tightening consumer protection rules online. For an industry often forced to defend its public mandate against purely commercial gambling models, the number is politically useful.
“Lotteries operate under strict regulation designed to protect consumers, ensure integrity, and prevent harm,” EL told SiGMA News. “Through their contributions to the public good, lotteries are an integral part of Europe’s social fabric and generate a significant positive societal impact across Europe.”
The report puts the average contribution at roughly €47 per European citizen. EL president Romana Girandon describes the figure in the report as “not just a number”, adding: “It is a shared achievement of millions of players and of the lottery model built on trust, responsibility and a clear societal purpose.”
Illegal operators move up the agenda
The stronger message, however, is not only about the money raised. EL’s 2025-2027 strategy lists tackling illegal and irresponsible gambling as one of four strategic areas, alongside societal impact, advocacy and governance.
From the lottery sector’s perspective, the illegal market is not a marginal irritant. It is a direct challenge to channelisation, player protection and the public-benefit model that lotteries use to justify their privileged position in many national markets.
“Illegal online gambling comes in many forms that pose a threat to lotteries,” EL said. “They expose players to heightened risks of problem gambling and to the dangers of fraud, while simultaneously creating unfair competition that damages the reputation of well-regulated operators.”
The association has also established a task force on illegal gambling, intended to monitor developments, share enforcement practice and coordinate public positions.
For lotteries, the concern is not simply market share. EL argues that illegal operators undermine the basic bargain on which national lottery systems rest: restricted, regulated access to gambling in return for funding to society.
“Lotteries have a crucial channeling role to fulfil: guiding players toward the legal, lower risk offer,” EL said. “Moreover, expanding case law from the European Court of Justice confirms the authority of European Member States to act against illegal practices and to safeguard their national regulatory models.”
National control versus EU action
That last point is central to EL’s positioning. The association argues for more cooperation against illegal gambling, but not a single European gambling rulebook.
“Nation states hold the authority to regulate their own gambling markets, taking into account their specific social and cultural contexts,” EL said. “Every gambling operator must comply with the legislation of the consumer’s country. There is no mutual recognition of licences, and therefore no cross-border activity in this sector.”
The report shows how far EL is prepared to go to defend that line. In 2025, it opposed what it saw as risks of “de facto harmonisation” through a proposed European Safer Gambling Standard at CEN, the European Committee for Standardization. EL says coordinated action by 36 members contributed to CEN not moving forward with the proposal.
That does not mean EL rejects Brussels entirely. Its position is more selective. Enforcement cooperation, best-practice exchange and digital tools are acceptable; rules that weaken national discretion are not.
“EU-level cooperation can be useful in some areas, such as the exchange of best practices on effective enforcement tools,” EL said. “Payment blocking, for example, could also play an even more prominent role in many European countries than it does today.”
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