Black Market Alert: Illegal Operators Target Self-Excluded Players Globally

The international gambling industry is facing a massive challenge as illegal operators become increasingly sophisticated. According to a new report from Fincord Intelligence, highlighted by the Betting and Gaming Council (BGC), the scale of the global black market has reached unprecedented levels. In 2025, unlicensed operators generated an estimated $50 billion in gross gaming revenue (GGR), demonstrating that the illegal sector is no longer a fringe issue but a highly organized global industry.

These operators are specifically targeting the most vulnerable segment of the market: players who have self-excluded through official channels. By using mirror sites and VPN access, these illicit platforms bypass national blocks and offer their services to individuals seeking protection. When one domain is taken down, several others appear almost instantly, making traditional enforcement methods like simple IP blocking increasingly ineffective.

Numbers and facts

The report by Fincord Intelligence provides startling data on the size of this shadow economy. In 2025, researchers identified roughly 5,000 operator structures managing more than 15,000 websites and apps. These entities utilize search engines, social media influencers, and encrypted messaging platforms like Telegram and WhatsApp to lure customers. They compete with licensed operators by offering fewer restrictions, such as deposit bonuses of up to 500% and significantly faster payout times.

Cryptocurrency has become a cornerstone of this illegal ecosystem. Fincord found that approximately 35% of all payments to illegal sites in 2025 were made using crypto. This figure is expected to grow rapidly, with projections suggesting it could reach 70% by 2030. This shift towards digital assets allows operators to obscure financial trails and evade the oversight of traditional payment processors and regulators.

Background

A particularly concerning finding in the Fincord report involves the alleged links between certain illegal gambling sites and Russian interests. As Fincord is based in Ukraine, the researchers emphasize that these operators might be contributing to Russia’s economic stability, turning the issue of illegal gambling into a matter of international security. The recommendation is for governments to target the underlying infrastructure—such as hosting providers, software suppliers, and crypto intermediaries—rather than chasing individual websites.

"Illegal gambling is no longer a collection of isolated websites. Governments must target the infrastructure that allows these illegal ecosystems to survive, rather than relying solely on blocking individual websites." - Fincord Intelligence spokesperson

Grainne Hurst, CEO of the BGC, echoed these concerns, pointing out the specific danger of "Non-GamStop" casinos in the UK. These sites explicitly market themselves to users who have registered with GamStop, the UK's national self-exclusion scheme. This predatory behavior directly undermines public health initiatives designed to combat gambling addiction.

Why it matters for German players

For players in Germany, this report serves as a stark reminder of the importance of the State Treaty on Gambling 2021 (GlüStV 2021). The German market is strictly regulated to provide a safe environment. Features like the 1,000 Euro monthly deposit limit and the 1 Euro stake limit for virtual slots are mandatory for all GGL-licensed operators. These measures, supported by the LUGAS and OASIS systems, are designed to prevent the very exploitation described in the Fincord report.

Interacting with illegal sites means forfeiting these protections. There is no legal recourse for German residents if an unlicensed operator refuses to pay out winnings. Furthermore, illegal sites do not participate in the OASIS self-exclusion system, meaning vulnerable players are left without a safety net. The allure of high bonuses is often a trap into a system where player data and funds are at significant risk.

What it means for GGL-licensed casinos

Licensed operators under the GGL (Gemeinsame Glücksspielbehörde der Länder) are finding it difficult to compete with the unrestricted nature of the black market. While licensed sites must adhere to strict advertising rules and social responsibility standards, illegal competitors operate with impunity. This highlights the need for the GGL to employ more aggressive enforcement tools, including better coordination with payment providers to cut off the financial lifelines of unlicensed sites.