The European Casino Association (ECA), European Lotteries (EL) and the World Tote Association have formed the Alliance Against Illegal Gambling, to support the Digital Service Act.
The legislation aims to make it easier to trace business users in online marketplaces, track down sellers of illegal goods and services, and help nations coordinate enforcement across the European single market.
It is being presented to the European Parliament and Council for review alongside the Digital Markets Act, and while it does not directly regulate gambling, rules covering social media, advertising and take-down orders will all affect the sector.
The Digital Markets Act, meanwhile, looks to increase oversight of major digital platforms such as social media networks.
The members of the Alliance Against Illegal Gambling said unlicensed providers fail to give back to the communities in which they operate by not paying tax, as well as creating unfair competition, and fail to provide any support to problem gamblers.