Greece Plans Sharper Penalties to Curb Illegal Gambling Activity

Greece Plans Sharper Penalties to Curb Illegal Gambling Activity

The Greek government is preparing a new legislative initiative that would significantly tighten the country's approach to unlicensed gambling, reflecting growing concern over the size and persistence of the illegal market. Drafted by the Ministry of National Economy and Finance, the proposed measures aim to increase penalties not only for operators, but also for individuals who participate in unauthorised gambling activities.

According to information emerging from the ministry, the bill is designed to address what authorities view as structural weaknesses in the current enforcement framework. While Greece already maintains a regulated gambling market with licensed operators, illegal activity continues to operate alongside it, both online and through physical venues. The new legislation seeks to narrow that gap by expanding enforcement powers and introducing tougher criminal and financial consequences.

A central feature of the draft law is the enhanced role of local authorities. Municipalities would be able to impose immediate closures on premises found to be hosting illegal gambling, as well as longer-term shutdowns for repeated violations. In addition, businesses implicated in unlicensed gaming could see their operating licences withdrawn, even if gambling is not their primary commercial activity. This marks a shift toward holding venue owners more directly accountable for illegal activity conducted on their premises.

The bill has been developed in cooperation with the Hellenic Gaming Commission (EEEP), which is expected to play a key role in implementing the new framework. Regulators would gain broader authority to act swiftly when illegal operations are detected, reducing reliance on lengthy administrative or judicial procedures that have often slowed enforcement efforts.

Internet cafés are expected to face particular scrutiny under the proposed reforms. Greek authorities have long associated certain cafés with unlicensed gambling, especially through the use of modified terminals or access to illegal online platforms. Under the new framework, these venues would be subject to stricter licensing requirements and closer monitoring, reflecting their perceived role in facilitating unauthorised gambling activity.

Penalties for operators are set to increase substantially. Running gambling activities without proper authorisation would carry a minimum prison sentence of three years, combined with financial penalties. In more serious cases, courts could impose custodial sentences of up to ten years, alongside fines ranging from €50,000 to €100,000. The draft law also introduces specific sanctions for those who obstruct regulatory inspections, with prison terms of at least 3 years for interference with enforcement actions.

Notably, the legislation extends liability more clearly to players themselves. Individuals found participating in unlicensed gambling would face potential prison sentences of up to two years, as well as monetary fines. Repeat offences would be treated more severely, with minimum prison terms of two years and fines between €5,000 and €20,000. This approach represents a shift in emphasis, as enforcement efforts have traditionally focused on operators rather than consumers.

The government has framed the proposed measures as part of a broader attempt to modernise gambling regulation and address developments in digital betting. Kyriakos Pierrakakis, Minister of National Economy and Finance, has stated that the aim is to establish a comprehensive framework to address illegal gambling at its source, whether through unlicensed websites or physical venues. He has also indicated that the reforms are intended to reflect current technological realities and incorporate input from regulated industry participants.

The proposed legislation arrives amid continued challenges for the Hellenic Gaming Commission. The regulator currently maintains a blacklist of nearly 11,000 illegal operators and works alongside law enforcement agencies, judicial authorities, and the Anti-Money Laundering Authority to restrict access to unauthorised gambling services. Despite these efforts, officials acknowledge that illegal activity remains widespread and adaptable.

Recent research illustrates the scale of the issue. A study by Kapa estimated that the illegal gambling market in Greece reached a value of approximately €1.67bn in 2023. The same analysis suggested that the state lost around €500m in tax revenue due to unlicensed gambling that year. Policymakers have cited these figures as evidence that existing deterrents have not been sufficient to contain the problem.

Data for 2024 points to continued high levels of participation. Researchers estimate that roughly 900,000 individuals in Greece wagered a total of €1.7bn through illegal channels. The average spend per participant was calculated at €1,930, raising concerns among regulators and public authorities. Of particular concern is the age profile of participants, with around 10 per cent reportedly aged 17-21.

The breakdown between online and land-based illegal gambling further highlights enforcement challenges. Online activity accounted for an estimated €1bn of illegal wagers, while physical venues contributed around €700m. This distribution underscores why the proposed framework addresses both digital platforms and local-level enforcement, rather than focusing on a single channel.

Beyond fiscal considerations, the draft legislation emphasizes protecting minors and vulnerable groups. By strengthening penalties and expanding enforcement authority, the government aims to limit exposure to unregulated gambling products that operate outside established consumer protection standards.