Slovakia: Policy inconsistencies aid black market encroachment
An independent report and audit detail that regulatory inconsistencies and fragmented enforcements have ceded the gambling market to unlicensed operators growing their scope in targeting Slovak consumers.
In Slovakia, questions are being raised about how effective the government is in tackling growing exposure to illegal gambling, which calls into question the policies enacted by the Valda (Parliament).
Concerns about the growing encroachment and engagement with black market operators have been raised by a damning audit from the Supreme Audit Office (SAO) and a detailed report published by the Institute for the Regulation of Gambling (IPRHH) an independent research agency on gambling.
Black Book of liabilities
Titled the Čierna kniha nelegálneho hazardu (Black Book of Illegal Gambling), by the IPRHH, its report presents the most comprehensive account yet of Slovakia’s growing vulnerability to illicit gambling.
Insights reveal a fragmented regulatory system that has failed to keep pace with a shadow industry that has gone digital with day-to-day engagements with national consumers.
The report identifies two key fronts: unlicensed online platforms and the growing infiltration of gambling mechanisms into mainstream digital culture. It estimates that the majority of illegal gambling activity in Slovakia now occurs online, facilitated by platforms that offer: Unlimited bet sizes, anonymous payments and zero identity verification.
The IPRHH describes this as gambling that has “moved from arcades into living rooms,” beyond the reach of any meaningful state control. The consequences are acute: minors, excluded players, and individuals receiving social assistance are all regularly able to access and spend money on these platforms.
Among youth aged 15–17, 31% reported having gambled online illegally, according to a 2023 IPSOS survey cited in the report. The findings further show that early exposure has lasting effects: individuals who began gambling before age 18 were four times more likely to develop gambling addiction and twice as likely to face debt collection before age 30.
The report also takes aim at so-called “loot boxes” embedded in video games — randomised digital rewards purchasable with real money. It labels them a “gateway drug to gambling,” particularly dangerous because of subtle integration into games popular with children.
Social media platforms add to the problem. Influencers are increasingly paid by offshore casinos to promote unlicensed platforms on TikTok, YouTube, and Twitch. These endorsements often depict gambling as glamorous, low-risk, and rewarding—distorting reality for young audiences. The IPRHH warns that these trends “erode the line between entertainment and exploitation.”
Technologically, the state is struggling to keep up. The report criticises the slow pace of enforcement and the overreliance on manual IP blocking. “The system is neither fast enough nor technologically capable to respond to the speed of illegal digital gambling,” the authors conclude.
Audit confirms the diagnosis
The SAO’s findings suggest that regulation is failing not because of bad policy, but because of non-enforcement. Between 2019 and 2025. URHH the Gambling Authority of Slovakia issued more than 600 fines — but allowed over 900 cases to expire without action, as deadlines lapsed. The root cause? Until recently, only one employee managed sanctions enforcement.
“It is not so clear why some received a fine of several thousand, and others avoided sanctions altogether,” admitted Ľubomír Andrassy, Head of the SAO. “There was no internal process. In many cases, the authority simply ran out of time.”
The audit also revealed a legislative loophole that allows gambling halls to continue operating for up to five years, even in municipalities that have banned them, if the local government fails to notify the regulator within five days. The SAO described this as “unreasonable and dysfunctional.”
Gambling is a lucrative business for the Slovak state. From 2018 to 2024, gambling contributed €1.8bn to the budget. Municipalities collected another €113m in licensing fees. In 2024 alone, online casinos generated €126m, up from less than €3m in 2019—largely due to the COVID-19 pandemic, which drove players online during the closure of land-based venues.
But this growth came without guardrails. The state “has no strategy to protect young people or addicts,” the SAO concluded. According to Lenčéš, “We are regulating the margins while ignoring the core problem. Without personnel, without tools, and without strategic direction, regulation becomes theatre.”
Blunt enforcements
More than 54% of gambling activity in Slovakia now takes place online. Yet much of that occurs outside the bounds of the legal market. Illegal websites, often tailored for Slovak users with local language, support, and branding, offer frictionless access to high-stakes gambling without registration or restrictions.
Children can play. Addicts can relapse. And there are no limits, no age checks, and no oversight. According to the IPRHH, many platforms even simulate legitimate design features to lull players into a false sense of security.
“Regulated operators are held to high standards,” says Dávid Lenčéš, executive director of the IPRHH, “but that only works if unlicensed providers face real consequences. Right now, they don’t.”
These sites evade detection using VPNs, anonymous payments, and rapidly shifting web domains. Enforcement becomes a game of digital whack-a-mole that the state is losing.
ÚRHH focuses on blocking access to known illegal websites — through DNS filtering and cooperation with internet providers. But without more powerful tools, and with slow identification procedures, this tactic has proved insufficient.
“Blocking IPs is a blunt instrument,” says one analyst familiar with the enforcement framework. “The platforms adapt in hours. The regulators take weeks.”
Can regulatory incoherence be fixed?
At present, Slovakia’s gambling sector is increasingly characterised by contradictions. The government profits from legal gambling, while failing to contain its illegal cousin. It demands strict compliance from licensed firms, while tolerating systemic non-compliance from unlicensed ones.
The lesson from the IPRHH and SAO is sobering: it is not prohibition that fuels black markets, but regulatory incoherence. And unless Slovakia aligns its policy ambitions with the realities of the digital era, it may soon find that the market has already slipped beyond its reach.
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