Italy’s illegal gambling market grows despite advertising crackdown

Italy’s illegal online gambling market has grown into a €20 billion ($22.5 billion) shadow economy driven increasingly by smartphones, social media, and rapidly replicating “mirror sites”, despite one of Europe’s toughest gambling advertising bans, according to a new report by Data Room Nexus Observatory.

More than 4.5 million Italians accessed unauthorised gambling platforms during the first three months of 2026, generating more than 13 million sessions across illegal websites and apps.

Researchers monitored around 500 gambling-related websites but said the true scale of the market was likely significantly larger because much of the ecosystem operates through private messaging channels and constantly changing domains.

Italy banned gambling advertising involving cash winnings under the 2018 “Decreto Dignità” law, extending restrictions to sponsorships and social media promotion. According to the report, the measures have pushed illegal operators toward less visible digital channels instead of eliminating gambling promotion altogether.

The findings highlighted what researchers described as a regulatory paradox, where tighter advertising restrictions may have unintentionally benefited unlicensed operators that can adapt more quickly than regulated companies and authorities.

“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,” Isabella Rusciano, General Director of Data Room Nexus, said.

According to the report, more than 90% of traffic to illegal gambling platforms now comes through smartphones, with Instagram, Telegram, WhatsApp, and YouTube serving as key acquisition channels.

Operators rely on referral links, push notifications, and cloned content designed to imitate licensed gambling brands, while fake applications distributed through imitation app stores may also be circulating online.

The report said around 78% of users accessing illegal gambling platforms were male, while nearly half were under the age of 35. The largest user group was between 25 and 34 years old, with activity peaking between midday and midnight.

Researchers also warned about rising levels of “direct traffic”, where users return voluntarily to illegal gambling sites through saved links or browser searches rather than through advertisements or promotions.

Italian authorities blocked more than 1,000 illegal gambling websites during 2025, according to the report, but replacement “mirror sites” often reappeared within hours or days using identical infrastructure, payment systems, and user databases.

The illegal gambling ecosystem remained highly fragmented, with operators frequently changing domains and rebranding platforms to avoid detection and enforcement measures.

Researchers warned that illegal platforms lacked safeguards related to responsible gambling, data protection, and dispute resolution, leaving users with little recourse if funds disappeared or disputes emerged.

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

The report also said the illegal market represented a substantial loss of tax revenue for Italy, diverting billions of euros away from the regulated economy.