Spain’s black-market online gambling activity is far more widespread than officials previously understood, according to a comprehensive new assessment released by EY. The research, presented by the Spanish online gaming association JDigital, marks the first time analysts have assembled a detailed picture of how deeply unregulated operators have penetrated the country’s digital wagering landscape.

The EY report, based on an online survey of 1,095 adults between 18 and 65 who use online gambling platforms, identifies a steadily expanding trend propelled by misinformation, easy access, and aggressive targeting through social networks and private messaging channels. According to the study, 23.4% of surveyed players had used unlicensed websites at least once—sometimes without realizing it—while 9.3% openly stated they had knowingly chosen illegal platforms.

Jorge Hinojosa, CEO of Jdigital, emphasized the serious implications of the findings, stating: “This study shows that illegal gambling is not a marginal phenomenon, but a real risk for thousands of users who are outside of any guarantee. Protecting the player requires strengthening information, channelling to licensed operators and stronger institutional cooperation.” His remarks echo similar concerns shared in the Spanish-language version of the report, where he reiterated that “El mercado regulado es la única vía que ofrece seguridad, trazabilidad y controles efectivos, y debemos asegurarnos de que los ciudadanos entienden esa diferencia.”

One of the most striking issues revealed in the research is the depth of consumer confusion. Nearly half—47.5%—of respondents who believed they were playing exclusively on authorized websites had in fact used domains operating outside Spain’s regulatory perimeter, often those ending in “.com,” “.io,” or “.bet.”

Economic Stakes and Player Motivations

EY estimates that unregulated online gambling generated €231 million in Spain during 2024, representing roughly 16% of the legal market’s value. High-intensity gamblers dominate this shadow economy: players spending more than €600 per month account for 61.4% of all unregulated wagering activity. These users are more susceptible to financial incentives and more likely to migrate from regulated platforms in search of bigger bonuses, fewer restrictions, or a perception of greater anonymity.

Across the broader sample, 29.8% of participants cited enhanced bonuses and promotions as the primary reason for turning to illegal sites. Because unlicensed operators are not bound by Spain’s strict advertising and bonus rules, they frequently offer rewards far exceeding what legal companies are allowed to provide. The study also notes that players using illegal operators rely more heavily on digital payment options such as Bizum and cryptocurrencies, often to secure fast transactions or enhanced privacy.

A concerning 26% of respondents reported that they cannot distinguish between legal and illegal gambling platforms, while 15% said they are unaware of the risks involved in using unlicensed operators. Younger adults are particularly vulnerable: the 18–24 demographic shows the highest rate of illegal platform use (16.1%) and simultaneously the lowest awareness of unregulated operators (32.1% acknowledged they didn’t know such platforms existed).

Digital Pathways and the European Landscape

Social networks and messaging apps now play an outsized role in driving users toward unauthorized gambling. Among players who have interacted with illegal platforms, 38% discovered them through YouTube, TikTok, or Instagram. Telegram is another strong funnel: 12% of illegal-market users found these sites on the messaging service, compared with just 4% among those who remain within regulated channels. EY describes these outlets as “opaque and unsupervised digital channels” that have become key mechanisms for acquiring new users.

The report also situates Spain’s situation within a broader European context. Across the continent, illegal online gambling accounted for 71% of gross gaming revenue in 2024 and grew by 53% year-over-year, largely due to high visibility and limited oversight. Although Spain’s illegal penetration is lower than elsewhere, EY warns that similar cross-border dynamics are influencing player behavior, underscoring the need for stronger international collaboration and more effective channeling toward licensed operators.

At the study’s presentation, experts from EY and various iGaming organizations explored economic and regulatory challenges, including how excessive or poorly calibrated restrictions may inadvertently drive players toward unsafe platforms by reducing the appeal of the licensed market.

Government Actions: Major Fines and Site Blockings

The expanding unregulated market coincides with a new wave of sanctions announced on November 25, 2025, by Spain’s Ministry of Social Rights, Consumer Affairs, and Agenda 2030. Authorities issued 32 sanctions—with fines totaling €33,503,000—against online gambling operators for serious and very serious violations.

Six operators functioning without a Spanish license received the highest penalties: XYZ Entertainment, Moonrail Limited, EOD Code SRL, Samaki, Lone Rock Holdings, and Novaforge. Each was fined €5 million, and their websites will be blocked.

Another 26 operators with valid licenses were penalized for various serious infractions. These include:

  • 888 Online – €250,000 for failing to meet technical requirements and using non-authorized systems
  • Beatya Online – €300,000 for similar technical violations
  • Betfair – €100,000 for deficiencies related to responsible gambling and player protection
  • Electraworks Ceuta – €512,000 for three distinct violations, including granting access to prohibited players and using non-approved systems
  • Codere – €17,500 for technical non-compliance

So far in 2025, Spanish regulators have issued 58 serious or very serious sanctions totaling almost €111 million. Since publication of sanctions became mandatory in July 2021, 212 penalties have been disclosed, amounting to €496 million.