European Commission research finds system failures enabling illegal gambling ads

The European Commission commissioned research that identifies system failures on major online platforms enabling illegal gambling advertising to flourish across member states. The study, carried out by Open Evidence and Spark Legal and published as part of the Commission’s supervisory work, highlights gaps in advertiser verification, mobile app distribution and the persistence of fraudulent adverts; it notes the Digital Services Act entered full application in February 2024.

Scope and purpose of the study

The research examined scams across six advertising fields: online gambling, financial services, investment, romance, e-commerce and personal health. Open Evidence and Spark Legal were contracted to uncover vulnerabilities in platform media and to inform development and supervisory activity under the European Commission’s Digital Services Act (DSA) framework. The report says its feedback “examines how scams manifest across designated services, their impact on users and society, and the countermeasures available”. It adds that the research does not assess platform compliance with DSA obligations.

The Commission launched the DSA into full application in February 2024, with a mandate to set harmonised rules for intermediary services in the internal market. The DSA requires large online platforms to show accountability for protecting users from illegal content, protecting minors and vulnerable audiences, and safeguarding user data autonomy.

Verification gaps on gambling advertising

The research documents how ad systems have allowed campaigns to run in jurisdictions where the advertiser holds no valid local gambling licence. It identifies platform liabilities including over-reliance on so-called “suspicious declarations” and weaknesses in confirming that an advertiser is authorised to target a specific member state. The report emphasises that identifying a business and confirming it holds a gambling licence somewhere in Europe does not, by itself, establish permission to serve every EU market.

Google is reported to have introduced new unconditional certification rules for gambling advertisers, implemented as of 14 September; advertisers must still apply for country-level certifications for each market they intend to target. The study concludes interviewees support stronger verification for regulated sectors.

Fraudulent schemes and advertising prevalence

The research describes fraudulent casinos and betting services that entice consumers to deposit money, then prevent withdrawals through manipulated outcomes, frozen accounts or blocked access. It cites Debunk.org reporting that advertising featured in 99% of the gambling scam cases reviewed, while clarifying that the figure should not be interpreted to mean 99% of all gambling advertising is fraudulent.

Mobile distribution is a third major concern. The report references Trend Micro research showing fake apps on Apple’s App Store and Google Play that conceal gambling functionality during review and activate it only after approval, undermining entry-point checks.

Proposed countermeasures in the study include stronger business verification, automated detection supported by human review, improved reporting tools and increased cooperation between platforms and external organisations.

National enforcement and industry pressure in the Netherlands

Dutch enforcement and industry groups provided contemporaneous evidence of the problem. The Kansspelautoriteit (Ksa) disclosed it had reported more than 4,600 illegal adverts to Meta during April, and the Dutch government later put the number of reports in May at more than 26,000. The government response warned that the short lifespan and high volume of adverts made case-by-case reporting and removal an insufficiently scalable remedy.

Dutch trade body VNLOK demanded advance verification of gambling advertisers’ licences and better detection of cloaking and referrals via messaging services. VNLOK announced plans for legal proceedings against Meta and a complaint to the European Commission in June.

At the Gaming In Spain conference in Madrid, VNLOK reported evidence it says documents failures by Meta. VNLOK gave a statistic that 97% of all advertisements the group identified were from unlicensed operators.

"This study clearly shows how enormous the fraud and scam challenges are on very large online platforms and search engines," VNLOK said. "These technical juggernauts combine reach, AI and audiences into a mix that is systematically being misused and thus needs more verification and filtering."

Platforms named and next steps

The study names major platforms including Meta, Google and Apple and points to systemic liabilities across their advertising ecosystems. The authors call for stronger business verification tied to the specific jurisdiction targeted by an advert and for improved platform cooperation with external monitors.

The Commission’s research is positioned as input to its supervisory and monitoring activity under the Digital Services Act. The report does not provide a compliance assessment but sets out technical and policy options that regulators and platforms can consider. VNLOK’s legal challenge and national reporting totals from the Ksa are among the enforcement data the Commission will hold alongside the study as it advances oversight.