MGA CEO and EGBA Call for Balanced Gambling Regulation as Black Market Grows

_{Charles Mizzi made the call at the SBC Leaders Summit. (Image: MGA)}

Overly restrictive gambling rules risk having the opposite of their intended effect, Malta Gaming Authority (MGA) CEO Charles Mizzi warned, pushing players toward unregulated markets and weakening consumer protections.

He spoke during a panel titled “The EGBA Sustainability Report: What It Means for Regulators and the Future of Gaming in Europe” at the SBC Leaders Summit yesterday, arguing for regulation that is smart, balanced, and encourages compliance rather than driving the market underground.

The Concern: Regulation vs Black Market

Regulators and industry groups increasingly point to evidence showing that strict controls, on advertising, casino bonuses, payment flows, product offerings, or taxation, may unintentionally make the regulated market less attractive. That can create a pull toward unlicensed or “black market” operators, who often do not provide the same level of protection for players as licensed online casinos.

According to the European Gaming and Betting Association (EGBA), unregulated websites operated from outside Europe “evade the responsibilities that regulated operators adhere to and operate outside of regulatory oversight in Europe.” Many are easy to find, and users often bypass restrictions with VPNs or mirror sites.

Google Trends shows a sharp rise in people searching for casinos ‘not on gamstop’ from June 2025. From 21 May 2025 a £2 per spin limit applied to players aged 18 to 24.

What the Data Shows
    •    In its 2024 EGBA Sustainability Report, EGBA reported that black market participation is a “significant challenge,” with offshore casino sites offering bigger casino promotions and fewer restrictions, but without reliable safeguards such as identity checks or responsible gambling tools.
    •    In France, more than 4 million players regularly used unlicensed online casino sites, compared with around 3.6 million who used regulated ones.
    •    The 2025 EGBA report found improvements in regulated markets, including broader use of safer gambling features and more personalised messaging. But it warned that new casino sites operating without licences are growing in number.
    •    Research by Regulus Partners shows that restrictive rules on casino offers, affordability checks, or bonus terms often push consumers toward unlicensed platforms, even in markets where regulators are well-intentioned.

Opposing View: Are Black Market Concerns Overstated?

Anti-gambling campaigners argue that black market claims are sometimes overstated. They say:
    •    Licensed operators use the “black market” narrative to resist stricter controls such as bans on casino free spins, limits on no deposit bonuses, or tighter ad restrictions.
    •    Estimating the size of unlicensed play is difficult, with opaque data and varying definitions of what counts as a “black market” operator.
    •    Some restrictions, such as caps on slot games or tighter rules on casino apps, have a strong public health rationale, even if they limit player choice.=

What Regulators and Industry Say Should Be Done

MGA’s Mizzi and the EGBA agree that a sustainable model must:
    •    Maintain strong consumer protections like age verification and safer play across UK casino sites, roulette casinos, and blackjack sites.
    •    Ensure regulated operators remain competitive, offering attractive casino bonuses, fair taxation, and a diverse range of slot sites, live casinos, and poker sites.
    •    Step up enforcement by blocking unlicensed online casino apps and cutting off their affiliate and payment channels, such as casinos that accept PayPal or other unregulated payment methods.
    •    Invest in transparency and education so that players understand the risks of using unlicensed baccarat casinos or offshore live dealer online casinos.

Mizzi said: “Instead, we advocate for a smarter, more balanced approach that combines open communication, education, and targeted enforcement.” 

What Does It Mean for Players?
    •    For players: Unlicensed operators offer tempting casino promotions, but carry higher risks, fraud, poor recourse, and no guaranteed access to safer play tools.
    •    For governments: A shift to black market poker sites and offshore roulette sites means lost tax revenue and weaker consumer protection.
    •    For licensed operators: If their best casino sites become too restrictive, players may choose unregulated slot games, weakening the regulated market.

A Debate Set to Continue

The debate is far from settled. Regulators want to protect consumers, but evidence suggests over-restriction can backfire. The MGA and EGBA say the goal should be a strong, competitive regulated sector, covering everything from live dealer casinos to new slot sites, to reduce the appeal of offshore alternatives.

Unless Europe finds that balance, the black market will continue to undermine both consumer safety and regulatory goals.