UK Black Market Gambling On the Rise According to New BGC Study
Published on by Becky M.
A recent study conducted by Frontier Economics, commissioned by the Betting and Gaming Council (BGC), revealed the rise in illegal gambling in the UK. The report revealed an estimated £4.3 billion staked annually on the black market, with approximately 1.5 million Brits engaging with unlicensed operators, both online and underground gambling venues.According to the report, £2.7 billion is gambled on illegal online sites, while an additional £1.6 billion is staked in physical gambling dens. The black-market operators aggressively target vulnerable players, including those who have self-excluded from regulated platforms and younger gamblers. One in five UK gamblers aged 18-24 has used unregulated platforms, highlighting the aggressive targeting of underage and vulnerable gamblers by unregulated platforms.
The BGC’s CEO, Grainne Hurst, expressed deep concern about the findings, stating, “Millions of customers are being driven into the arms of pernicious black-market operators. These people don’t care about player safety, don’t pay taxes, and make a mockery of the protections set up for vulnerable individuals.”Hurst warned that heavy-handed regulations, such as blanket affordability checks or advertising bans, could unintentionally encourage more gamblers to visit unregulated sites.The study highlighted the financial impact on the UK, as the black market could cost the Treasury £335 million in tax revenue over the next five years. Hurst emphasised the need for balanced regulation, arguing that while enforcement is necessary, over-regulation risks exacerbating the problem.The report follows the UK government’s 2023 White Paper on gambling reform, which aimed to tighten regulation. However, the BGC and other industry leaders are urging a careful approach to avoid driving more consumers to the black market, as seen in other European countries where stringent rules have led to a surge in illegal gambling.