Europe’s Online Casino Growth Opens Doors for Massive Fraud.The rapid expansion of Europe’s online gambling market has created a lucrative opportunity—not just for operators, but also for fraudsters. With annual industry revenues surpassing €55 billion, fraud now costs the sector an estimated €5 billion per year, accounting for nearly 10% of total earnings.
As transactions soar, so do sophisticated fraudulent schemes. Bonus abuse remains the dominant method, responsible for 66% of all fraud cases, where criminals exploit welcome promotions by creating multiple accounts. Identity theft and account takeovers have surged 34%, often enabled by AI-driven deepfakes, making verification increasingly challenging. Money laundering via online casinos has also risen by 21%, with criminals using gambling platforms to clean illicit funds.
Europe Among the Hardest Hit Regions
The latest iGaming Fraud Report 2025 highlights several countries facing alarming fraud rates:
- Bangladesh – 8.5% of sign-ups flagged as fraudulent
- Indonesia – 8%
- South Korea – 6.6%
- Pakistan – 6.1%
- Bosnia and Herzegovina – 6%
In Europe, Germany, the UK, and the Netherlands are among the most affected, given their high-volume gambling activity.
The Struggle Against Digital Fraud
Despite tightening regulations, fraudsters continue to outmaneuver security measures. European gambling regulators are pushing for stricter KYC (Know Your Customer) rules and enhanced AI-driven fraud detection, but experts warn that international collaboration is needed to curb rising threats.
With online casinos handling record transactions, fraud prevention remains one of the industry’s most pressing challenges. As fraud techniques evolve, operators must strengthen their security to protect their businesses—and their players.
