An eye-opening report from the Betting and Gaming Council (BGC) has revealed that illegal gambling websites in the UK handle up to £2.7 billion in bets each year. This figure, which accounts for roughly 2.1% of the total £128 billion wagered on licensed gambling platforms, underscores the growing presence of the black market in the UK’s gambling landscape.
The survey, conducted by Frontier Economics, marks the first major study of the illegal gambling market since the UK government published its white paper on gambling reform in May 2023. It paints a concerning picture of how unregulated operators are siphoning off significant sums while evading the controls and protections imposed on legal platforms.
Black Market Gambling and its Drivers
The study reveals that 5.4% of UK gamblers are using both licensed and illegal gambling sites, with 0.8% exclusively betting on black market platforms. These figures highlight how unregulated operators are tapping into the UK market, often attracting players with offers that licensed operators cannot match. The research found that 35% of those using illegal sites were drawn by bonuses and free bets, while others were enticed by the ease of setting up accounts and better odds.
Grainne Hurst, CEO of the BGC, expressed deep concern about the findings, warning that the government and regulators must act before the issue worsens. She noted, “Simply giving the UK Gambling Commission more powers won’t be enough. Enforcement is only part of the solution.”
The study also indicates that 15% of gamblers are aware of at least one illegal brand, with social media serving as the most popular avenue for black market advertising. Nearly a quarter of the survey respondents reported seeing promotions for illegal sites on social media, while sports sponsorships, online ads, and streaming platforms were other common channels.
Younger Gamblers Most at Risk
The report highlights a worrying trend among younger gamblers, with 38% of those aged 18-24 recognizing at least one illegal brand. This demographic is more likely than any other to engage with the black market, with 16% admitting to placing bets on these sites. As the black market expands, regulators are increasingly concerned that younger players may be more vulnerable to the risks associated with unregulated gambling.
In addition to the £2.7 billion wagered online, the report estimates that illegal in-person gambling could account for an additional £1.6 billion, bringing the total size of the black market to £4.7 billion annually. The growing black market not only undermines player safety but also has significant financial implications. The report warns that the UK Treasury could lose as much as £335 million in gambling taxes over five years.
A Call for Balanced Regulations
Hurst emphasized that while stronger enforcement is necessary, over-regulation could unintentionally drive more players toward illegal operators. She stressed the need for balanced policies, warning that heavy-handed restrictions such as blanket advertising bans or low-level affordability checks could further bolster the black market.
“The best way to combat this illegal, unregulated gambling is through balanced regulations that protect players while allowing the regulated sector to remain competitive,” Hurst said.
As UK lawmakers and regulators evaluate the next steps for gambling reform, the battle between the regulated market and the black market will be a key focus in the months ahead.
Source:
SHOCK NEW STUDY REVEALS 1.5m BRITS STAKE UP TO £4.3bn ON ILLEGAL GAMBLING BLACK MARKET EACH YEAR, Betting & Gaming Council (BGC), September 19, 2024.
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