The European Commission (EC) has replied to concerns raised over the Digital Services Act (DSA) and its capacity to allow EU member states to combat and penalise the “promotion of unlicensed online gambling.”
In April, a written question was submitted to the EC by MEP Sabine Verheyen (PPE), a representative of Germany’s Christian Democratic Union (CDU) and member of the European People’s Party Group (EPP).
Verheyen’s query noted that “a 2024 study conducted by Yield Sec on behalf of the European Casino Association found that 71% of online gambling activity targeting European users takes place on unlicensed, and thus illegal, websites”.
The report cited reflects Yield Sec’s estimates that unlicensed operators account for 71% of European online gambling gross gaming revenue (GGR). Yield Sec estimated that illegal operators generate approximately €80bn in annual GGR, compared to €33bn generated by licensed operators across European markets.
The German MEP further highlighted reports that illegal gambling websites are being actively promoted by content creators on platforms such as YouTube and Twitch through affiliate marketing programmes.
Concerned that illegal websites target the most vulnerable audiences, Verheyen asked the following questions of the EC combatting illegal gambling services under the remit of the DSA:
· I Is the Commission aware of the active promotion, by online content creators in the EU, of unlicensed online gambling services?
· Does the Commission intend to investigate the issue further?
· What steps is the Commission taking to ensure the more effective enforcement of the Digital Services Act?
Enforcement via DSA obligations
Responding on behalf of the EC on 12 June, Executive Vice-President Henna Virkkunen acknowledged concerns relating to undisclosed advertising and the promotion of illegal products online.
“The Commission is aware of the issue of undisclosed advertising on online platforms, as well as the promotion of illegal products online,” Virkkunen stated.
The Commission stopped short of announcing a dedicated investigation into illegal gambling promotions but reiterated that the DSA already provides mechanisms through which illegal content can be identified and removed.
“The Digital Services Act requires online platforms to provide a user-friendly notice and action mechanism ensuring users can report content, including advertisements, they consider to be illegal,” Virkkunen explained.
She further noted that Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) are required to assess and mitigate systemic risks linked to the dissemination of illegal content across their services.
The rules and requirements of the DSA on online platforms have been in force since February 2024 and are applied to media publishers, marketplaces, search engines and social media platforms operating within the bloc.
The framework imposes obligations on the management of digital platforms to remove illegal content, increase transparency around advertising, and establish clear reporting mechanisms.
DSA is an evolving mandate
The original mandate of the DSA was established to protect EU audiences from online scams and harms, be it financial, consumer-related, reputational or societal.
The DSA places ‘extended duties’ on Big Tech multi-market platforms with due-diligence on assessing systemic risks, auditing algorithms and implementing safeguards to reduce harms linked to illegal products and services.
Virkkunen highlighted the DSA’s bounding duty that commercial content must be clearly labelled, while the forthcoming Digital Fairness Act is expected to introduce further measures targeting unfair influencer marketing practices.
As part of its wider enforcement strategy, the Commission referenced ongoing proceedings against major technology platforms. Virkkunen noted that preliminary findings have been adopted against Meta regarding Facebook and Instagram’s notice-and-action mechanisms, while formal proceedings have been launched against Snapchat over concerns related to the promotion of prohibited or age-restricted products to minors.
The Commission is also examining app stores and the effectiveness of measures designed to prevent minors from accessing age-restricted applications, including gambling products.
The DSA provides the Commission with significant enforcement powers. Companies found to be in breach of the regulation can face fines of up to 6% of their global annual turnover, while repeated and serious violations can result in temporary restrictions on services operating within the EU.
Brussels limitations on Big Tech
Despite the broad scope of the legislation, concerns remain across multiple sectors regarding the effectiveness of enforcement.
Rights holders have questioned whether the DSA can adequately combat copyright infringement and intellectual property theft, while consumer groups continue to press platforms on issues relating to harmful content, counterfeit goods, online fraud and the protection of minors.
For policymakers, the central challenge remains whether the DSA can compel the world’s largest technology companies to police their platforms effectively. Many of the services subject to the regulation’s strictest requirements are operated by US-based technology giants whose business models depend on user-generated content and advertising revenues.
Verheyen’s intervention highlights a broader debate over whether the DSA’s regulatory powers can be translated into meaningful enforcement outcomes.
Until the DSA proves its capacity, questions will remain as to whether Europe’s digital rulebook can significantly reduce the visibility and reach of unlicensed operators across online platforms.
